XORTX Announces US$5 Million Public Offering

On May 14, 2026, XORTX Therapeutics priced a public offering of 2,659,574 common shares or pre‑funded warrants at US$1.88 per security, expecting to raise gross proceeds of US$5 million. The offering is led by E.F. Hutton as exclusive placement agent and is expected to close on or about May 15, 2026. Pre‑funded warrants carry an exercise price of US$0.0001, are immediately exercisable and remain outstanding until fully exercised. Net proceeds are intended for working capital and general corporate purposes.

The financing is profoundly negative. The US$1.88 offering price represents a 38% discount to the last closing price of $3.03 and is the lowest equity raise in the company’s recent history. This steep discount, combined with the massive issuance of virtually free-to-exercise pre‑funded warrants, signals acute cash distress. Historical context makes the debasement even clearer:

• A October 2025 registered direct offering raised US$1.1 million at US$0.63 per share when the stock still traded near $5‑6, initiating a dramatic share-price collapse.
• In April 2026, XORTX closed the VB4‑P5 acquisition by issuing stock at a deemed price of US$3.54 per share – a level now completely undercut by the new $1.88 deal.
• The 52‑week high was $7.30; the decline to $2.42 in March 2026 and the failed bounce to the $3‑4 range show persistent selling pressure.

The offering dilutes existing shareholders enormously, both through the immediate issuance and through the pre‑funded warrants that will be exercised at nearly zero cost. Market reaction will likely drive the stock towards the offering price and possibly below, as recent support levels are shattered. The news contains no new development catalysts; it is purely a bail‑out financing that highlights the company’s inability to fund operations through non‑dilutive means.

XORTX Therapeutics is a clinical‑stage biopharmaceutical company focused on developing therapies for progressive kidney disease. Its pipeline includes:

• XRx‑008, a program targeting rising uric acid and gout (late‑stage, via Phase 3 planned or ongoing).
• Programs for autosomal dominant polycystic kidney disease (ADPKD) and acute kidney injury.
• Recently acquired VB4‑P5 renal anti‑fibrotic program (pre‑IND) from Vectus Biosystems, a novel chemical entity aiming to inhibit/reverse kidney fibrosis in rare and prevalent chronic kidney diseases (CKD, ADPKD, lupus nephritis). The acquisition was closed in April 2026 for US$3 million in shares.

All programs are pre‑revenue, with no approved products, and the company relies entirely on external funding to advance clinical development.