XORTX Raises $2.5 Million Under Prospectus Supplement and Concurrent Private Placement for the Offering of Units

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CALGARY, Alberta, Feb. 15, 2024 (GLOBE NEWSWIRE) -- XORTX Therapeutics Inc. (“XORTX” or the “Company”) (NASDAQ: XRTX | TSXV: XRTX | Frankfurt: ANU), a late stage clinical pharmaceutical company focused on developing innovative therapies to treat progressive kidney disease, is pleased to announce an initial closing of gross proceeds of $2,474,301 under previously announced offering, including $690,000 in a concurrent private placement of the Company in connection with international subscribers.

The initial closing of the non-brokered offering comprised 824,767 common share units (“Common Share Units”) at $3.00 per Common Share Unit, with each Common Share Unit consisting of one common share, no par value, and one warrant (“Warrant”) to purchase one common share at $4.50 per common share for a period of two years for aggregate gross proceeds of $2,474,301, prior to deducting offering expenses (the “Offering”). The common shares and Warrants contained in the Common Share Units are immediately separable upon issuance. The Warrants have an initial exercise price of $4.50 per share, will be immediately exercisable, and may be exercised for two years from the date of issuance, provided, however that, if, the common shares on the TSX Venture Exchange (“TSXV”) trade at greater than $6.00 for 10 or more consecutive trading days, the Warrants will be accelerated and the Warrants will expire on the 30^th business day following the date of such notice.

In connection with the Offering, the Company paid finder’s fees of $122,208, representing a 5% finder’s fee on certain subscriptions in the Offering to qualified finders.

The Company anticipates that a second tranche closing under the same terms of the Offering will close on or about February 20, 2024 (the “Second Tranche Closing”).

Under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”), the Offering constitutes a “related party transaction” because a portion of the Offering was subscribed for by a “related party”. However, the Transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in reliance on the exemptions set forth in sections 5.5(a) and 5.7(1)(a) of MI 61-101.