XORTX Announces Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES

CALGARY, Alberta, Jan. 07, 2021 (GLOBE NEWSWIRE) -- XORTX Therapeutics Inc. ("XORTX" or the “Company”) (CSE: XRX; OTCQB: XRTXF), a biopharmaceutical company focused on developing innovative therapies to treat progressive kidney disease, announces a non-brokered private placement to raise between CDN $2,000,000 and CDN $3,000,000 through the issuance of between 8,000,000 and 12,000,000 common share units of the Company at a price of CDN $0.25 per unit (the “Private Placement”). Each Unit will comprise one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder, on exercise, to purchase one additional common share in the capital of the Company, at a price of CDN $0.35 per Warrant until the close of business on the day which is 36 months from the Closing Date, provided, however, that, if, at any time following the expiry of the statutory four month hold period, the closing price of the common shares on the Canadian Securities Exchange (the “CSE”) is greater than $0.45 for 10 or more consecutive trading days, the Warrants will be accelerated and the Warrants will expire on the 20^th business day following the date of such notice.

The Company may pay finder’s fees on a portion of the Private Placement in accordance with applicable securities laws and the policies of the CSE. All securities issued under the Private Placement will be subject to a four month and one day “hold period” under applicable Canadian securities legislation.

The Private Placement is subject to approval of the CSE.

The proceeds from the sale of the Units will be utilized by the Company for pre-clinical trials, IND (Investigative New Drug) filing for XRx-008 for polycystic kidney disease (a phase 3 ready program), R&D and for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.