Applied Therapeutics Rallies After Announcing Private Placement Of Shares

(RTTNews) - Shares of Applied Therapeutics, Inc. (APLT) are surging more than 40 percent Wednesday morning after the clinical-stage biopharmaceutical company announced a private placement to the tune of $100 million.

The company intends to use gross proceeds from the offering of 100 million to fund commercial activities for govorestat, to develop pipeline candidates, and for general corporate purposes.

Applied Therapeutics added that net proceeds, along with existing cash and cash equivalents, are expected to extend cash runway into 2026.

The company has entered into a definitive securities purchase agreement for the sale of 12,285,714 shares at $7.00 per share and 2,000,000 pre-funded warrants to purchase shares at $6.999 per share, in a private placement, which is expected to close by March 1.

APLT, currently at $7.90, touched a new high of $9.39 this morning.