Phio Pharmaceuticals Announces Exercise Of Warrants For $3.1M Gross Proceeds

Marlborough, Massachusetts--(Newsfile Corp. - July 12, 2024) - Phio Pharmaceuticals Corp. (NASDAQ:PHIO) (the "Company"), a clinical stage biotechnology company whose proprietary INTASYL® siRNA gene silencing technology is designed to make immune cells more effective in killing tumor cells, today announced the entry into definitive agreements to exercise certain outstanding warrants to purchase up to an aggregate of 545,286 shares of common stock of the Company originally issued in February 2020 through December 2023, having exercise prices between $324.00 and $9.72 per share, at a reduced exercise price of $5.45 per share. The shares of common stock issuable upon exercise of the warrants are registered pursuant to effective registration statements on Form S-1 (Nos. 333-234032, 333-238204, 333-239779, 333-271521, 333-272526 and 333-276146) and Form S-3 (No. 333-252588). The gross proceeds to the Company from the exercise of the warrants are expected to be approximately $3.1 million, prior to deducting placement agent fees and estimated offering expenses.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

In consideration for the immediate exercise of the warrants for cash and the payment of additional $0.125 per new unregistered warrant (additional $136,321.50 in the aggregate, which are included in the gross proceeds to the Company), the exercising holders will receive new unregistered warrants to purchase shares of common stock in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "1933 Act"). The new warrants will be exercisable for an aggregate of up to 1,090,572 shares of common stock, at an exercise price of $5.45 per share and will be immediately exercisable upon issuance. 583,098 of the new warrants will have a term of five and one-half years from the issuance date and 507,474 of the new warrants will have a term of eighteen months from the issuance date.