Core Points - CK Life Sciences Int'l., (Holdings) Inc. has agreed to convert $19.5 million of debt into equity for Dogwood Therapeutics, removing all existing debt from the company's balance sheet [1][2][3] - The conversion reflects CKLS's confidence in Dogwood's management and the potential of Halneuron as a treatment for chemotherapy-induced neuropathic pain (CINP) [2][4] - The strategic financing ensures Dogwood has sufficient capital to continue its Phase 2b CINP trial without the burden of debt payments [2][5] Financial Details - The debt conversion involves the issuance of 284.2638 shares of Series A-1 Non-Voting Convertible Preferred Stock, which can be converted into 10,000 shares of common stock, pending stockholder approval [3] - The principal amount of the loans and accrued interest will be fully satisfied and cancelled as part of this agreement [3] Product Development - Halneuron is a first-in-class NaV 1.7 specific voltage-gated sodium channel inhibitor, showing significant pain reduction in previous clinical trials with an acceptable safety profile [4] - The upcoming Phase 2b trial, HALT-CINP, is expected to dose its first patient soon, with interim data anticipated in Q4 of 2025 [2][5] Research Pipeline - Dogwood's research pipeline includes a non-opioid analgesic program centered on Halneuron and an antiviral program targeting conditions related to herpesvirus reactivation [5][6] - The antiviral program includes IMC-1 and IMC-2, with IMC-1 progressing to Phase 3 for fibromyalgia and IMC-2 advancing to Phase 2b for Long-COVID [6][7]
Dogwood Therapeutics, Inc. Announces Conversion of Existing $19.5M in Debt to Equity, Strengthening Balance Sheet Moving Forward