Rakovina Therapeutics Announces Three-Month Q2 ended June 30, 2025 Financial Results and Provides Corporate Update

Executive Summary

• Rakovina Therapeutics reported its financial results for the three months ended June 30, 2025, showing a net loss of $2,916,944 and an operating expense cash burn of approximately $2.65 million.
• The company closed a non-brokered private placement in June 2025, raising gross proceeds of approximately $3.56 million in equity units and $1.35 million via unsecured convertible debentures.
• Significant corporate developments included a 1-for-10 reverse share consolidation effective June 24, 2025, and subsequent events involving warrant amendments, a warrant exercise incentive program, and stock option grants.

Key Details

• Financial Performance (Q2 2025):
  • Net loss: $2,916,944 (compared to $820,720 in Q2 2024).
  • Loss per share (basic and diluted): $(0.18).
  • Research and Development (R&D) expenses: $1,611,985.
  • General and Administrative (G&A) expenses: $1,213,489.
  • Operating expense cash burn (non-IFRS): ~$2.65 million.
  • Cash and cash equivalents as of June 30, 2025: $1,882,886.
  • Total Assets: $6,554,120.
  • Total Liabilities: $3,338,110.
  • Deficit: $(20,076,327).
• Private Placement Financing (Closed June 6, 2025):
  • Gross proceeds: ~$3.56 million from the sale of 7,110,300 equity units (71,103,000 pre-consolidation).
  • Concurrent financing: $1.35 million in unsecured convertible debentures.
  • Unit Structure: Each unit consisted of one common share and one warrant.
  • Warrant Terms: Exercisable at $1.00 per share (post-consolidation) / $0.10 (pre-consolidation) for 24 months from issuance.
• Corporate Actions:
  • Reverse Share Consolidation: Implemented on June 24, 2025, at a ratio of 1-for-10.
  • Post-consolidation share count: 21,148,039 common shares issued and outstanding as of June 30, 2025.
  • Convertible Debentures: Accretion expense of $38,817 recorded during Q2; shares issued for accrued interest.
• Subsequent Events:
  • Warrant and Debenture Amendments: Announced June 30, 2025, to amend outstanding warrants and debentures with an aggregate principal amount of $1.45 million (subject to TSXV approval).
  • Warrant Exercise Incentive: Announced July 24, 2025, to encourage early exercise of certain warrants.
  • Stock Options: Granted 540,000 options on July 29, 2025, to consultants, employees, officers, and directors.
  • Option Terms: Exercisable at $0.70 per share with a vesting period of six months over three years.