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Delaware
(State or other jurisdiction of
incorporation or organization) |
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2834
(Primary Standard Industrial
Classification Code Number)
6 Liberty Square, #2382
Boston, MA 02109
(857) 837-3099 |
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81-1065054
(I.R.S. Employer
Identification No.) |
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Michael Bison
Finnbarr Murphy Jacqueline R. Kaufman Goodwin Procter LLP 100 Northern Avenue Boston, MA 02210 (617) 570-1000 |
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Thomas A. Fitzgerald
Chief Financial Officer TransCode Therapeutics, Inc. 6 Liberty Square, #2382 Boston, MA 02109 (857) 837-3099 |
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Stephen Older
Rakesh Gopalan David S. Wolpa McGuireWoods LLP 1251 Avenue of the Americas, 20th Floor New York, NY 10020 (212) 548-2122 |
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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Emerging growth company
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| PRELIMINARY PROSPECTUS | | |
SUBJECT TO COMPLETION
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DATED , 2022
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Per Share
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Total
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Public offering price
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| | | $ | | | | | $ | | | ||
Underwriting discounts and commissions(1)
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| | | $ | | | | | $ | | | ||
Proceeds to us, before expenses
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| | | $ | | | | | $ | | | |
| | | | | ii | | | |
| | | | | iii | | | |
| | | | | iv | | | |
| | | | | 1 | | | |
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| | | | | 72 | | | |
| | | | | 74 | | | |
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| CAPITALIZATION | | | |
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| DILUTION | | | |
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| BUSINESS | | | |
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| UNDERWRITING | | | |
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| EXPERTS | | | |
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Three Months Ended March 31,
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Years Ended December 31,
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2022
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2021
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2021
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2020
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Unaudited
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Statement of Operations Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
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| | | $ | 1,881,576 | | | | | $ | 263,759 | | | | | $ | 2,753,966 | | | | | $ | 284,459 | | |
General and administrative
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| | | | 1,595,926 | | | | | | 185,706 | | | | | | 3,397,169 | | | | | | 442,145 | | |
Total operating expenses
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| | | | 3,477,502 | | | | | | 449,465 | | | | | | 6,151,135 | | | | | | 726,604 | | |
Operating loss
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| | | | (3,477,502) | | | | | | (449,465) | | | | | | (6,151,135) | | | | | | (726,604) | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of derivative liabilities
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| | | | — | | | | | | (3,936,000) | | | | | | (867,000) | | | | | | (1,208,000) | | |
Change in fair value of warranty liability
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| | | | — | | | | | | (47,115) | | | | | | (6,109) | | | | | | (14,852) | | |
Grant income
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| | | | 6,990 | | | | | | — | | | | | | 278,333 | | | | | | — | | |
Loss on sale of equipment
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| | | | — | | | | | | — | | | | | | (3,082) | | | | | | — | | |
Interest expense
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| | | | — | | | | | | (52,770) | | | | | | (95,070) | | | | | | (394,573) | | |
Interest income
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| | | | 442 | | | | | | 12 | | | | | | 664 | | | | | | 136 | | |
Total other income (expense)
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| | | | 7,432 | | | | | | (4,035,873) | | | | | | (692,264) | | | | | | (1,617,289) | | |
Loss before income taxes
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| | | | (3,470,070) | | | | | | (4,485,338) | | | | | | (6,843,399) | | | | | | (2,343,893) | | |
Income tax expense (benefit)
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| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss
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| | | $ | (3,470,070) | | | | | $ | (4,485,338) | | | | | $ | (6,843,399) | | | | | $ | (2,343,893) | | |
Basic and diluted loss per common share(1)
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| | | $ | (0.27) | | | | | $ | (0.97) | | | | | $ | (0.81) | | | | | $ | (0.51) | | |
Weighted average number of common shares outstanding, basic and diluted(1)
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| | | | 12,977,234 | | | | | | 4,636,216 | | | | | | 8,425,880 | | | | | | 4,636,216 | | |
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March 31, 2022
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December 31,
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2021
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2020
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Unaudited
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Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
Current assets
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| | | $ | 18,634,693 | | | | | $ | 22,732,175 | | | | | $ | 831,215 | | |
Total assets
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| | | | 18,850,017 | | | | | | 22,938,443 | | | | | | 1,055,368 | | |
Current liabilities
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| | | | 1,849,179 | | | | | | 2,534,097 | | | | | | 404,862 | | |
Total liabilities
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| | | | 1,849,179 | | | | | | 2,534,097 | | | | | | 4,463,600 | | |
Total stockholders’ equity (deficit)
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| | | | 17,000,838 | | | | | | 20,404,346 | | | | | | (3,408,232) | | |
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As of March 31, 2022
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(unaudited)
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Actual
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As Adjusted
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Cash and cash equivalents
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| | | $ | 16,852,626 | | | | | $ | | | |
Stockholders’ equity | | | | | | | | | | | | | |
Preferred stock – $0.0001 par value; 10,000,000 shares authorized actual and
as adjusted; no shares issued or outstanding actual or as adjusted |
| | | | — | | | | | | — | | |
Common stock – $0.0001 par value; 290,000,000 shares authorized; 12,977,234 shares issued and outstanding actual; shares issued and outstanding as adjusted
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| | | $ | 1,298 | | | | | $ | | | |
Additional paid-in capital
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| | | | 30,774,891 | | | | | | | | |
Accumulated deficit
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| | | | (13,775,351) | | | | | | | | |
Total stockholders’ equity
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| | | | 17,000,838 | | | | | | | | |
Total capitalization
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| | | $ | 17,000,838 | | | | | $ | | | |
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Assumed public offering price per share
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| | | | | | | | | $ | | | |
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Net tangible book value per share at March 31, 2022
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| | | $ | 1.31 | | | | | | | | |
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Decrease in book value per share attributable to new investors
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| | | $ | | | | | | | | | |
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As adjusted net tangible book value per share after this offering
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| | | | | | | | | $ | | | |
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Dilution per share to new investors
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| | | | | | | | | $ | | | |
Name of Beneficial Owner
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Shares
Beneficially Owned |
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Percentage
of Shares Beneficially Owned |
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Greater-than-5% Stockholders | | | | | | | | | | | | | |
Zdravka Medarova, PhD, Chief Technology Officer(1)
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| | | | 1,633,661 | | | | | | 12.5% | | |
Anna Moore, PhD, Co-Founder, Advisor(2)
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| | | | 1,593,224 | | | | | | 12.2% | | |
AIGH Capital Management, LLC(3)
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| | | | 1,289,000 | | | | | | 9.9% | | |
Named Executive Officers and Directors | | | | | | | | | | | | | |
Robert Michael Dudley, Chief Executive Officer, President, and Director(4)
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| | | | 1,600,978 | | | | | | 11.7% | | |
Thomas A. Fitzgerald, Vice President, Chief Financial Officer(5)
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| | | | 355,040 | | | | | | 2.7% | | |
Philippe Calais, PhD, Director(6)
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| | | | 148,605 | | | | | | 1.1% | | |
Erik Manting, PhD, Director(7)
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| | | | 21,228 | | | | | | 0.2% | | |
Magda Marquet, PhD, Director(8)
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| | | | 20,218 | | | | | | 0.2% | | |
All executive officers and directors as a group (5 persons)
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| | | | 2,146,069 | | | | | | 15.7% | | |
Underwriter
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Number of Shares
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ThinkEquity
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Total
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Per Share
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With No
Over-Allotment |
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With Full
Over-Allotment |
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Public offering price
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| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount (7%)
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| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us
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| | | $ | | | | | $ | | | | | $ | | | |||
Non-accountable expense allowance (1%)
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| | | $ | | | | | $ | | | | | $ | | | |
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Amount Paid
or to Be Paid |
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SEC registration fee
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| | | $ | * | | |
FINRA filing fee
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| | | | * | | |
listing fee
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| | | | * | | |
Printing and mailing
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| | | | * | | |
Legal fees and expenses
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| | | | * | | |
Accounting fees and expenses
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| | | | * | | |
Transfer agent and registrar fees and expenses
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| | | | * | | |
Miscellaneous
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| | | | * | | |
Total
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Exhibit
number |
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Description
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1.1* | | | Form of Underwriting Agreement. | |
3.1 | | | Amended and Restated Certificate of Incorporation of TransCode Therapeutics, Inc. (Incorporated by reference to Exhibit 3.3 to the Registrant’s Registration Statement on Form S-1, filed on February 26, 2021 (File No. 333-253599)). | |
3.2 | | | Amended and Restated Bylaws of TransCode Therapeutics, Inc. (Incorporated by reference to Exhibit 3.5 to the Registrant’s Registration Statement on Form S-1, filed on February 26, 2021 (File No. 333-253599)). | |
4.1 | | | Specimen Common Stock Certificate (Incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-1, filed on April 8, 2021 (File No. 333-253599)). | |
4.2* | | | Form of Underwriter Warrant. | |
4.3 | | | Form of Representative Warrant (Incorporated by reference to Exhibit 4.2 to the Registrant’s Registration Statement on Form S-1, filed on March 24, 2021 (File No. 333-253599)). | |
5.1* | | | Opinion of Goodwin Procter LLP. | |
10.1# | | | 2020 Stock Option and Incentive Plan and form of award agreements thereunder (Incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-1, filed on February 26, 2021 (File No. 333-253599). | |
10.2# | | | 2021 Stock Option and Incentive Plan and form of award agreements thereunder (Incorporated by reference to Exhibit 10.2 to the Registrant’s Amendment No. 1 to Registration Statement on Form S-1, filed on March 24, 2021 (File No. 333-253599). | |
10.3# | | | Senior Executive Cash Incentive Bonus Plan (Incorporated by reference to Exhibit 10.3 to the Registrant’s Amendment No. 1 to Registration Statement on Form S-1, filed on March 24, 2021 (File No. 333-253599). | |
10.4# | | | Form of Indemnification Agreement between the Registrant and each of its executive officers (Incorporated by reference to Exhibit 10.4 to the Registrant’s Amendment No. 1 to Registration Statement on Form S-1, filed on March 24, 2021 (File No. 333-253599). | |
10.5# | | | Form of Indemnification Agreement between the Registrant and each of its directors (Incorporated by reference to Exhibit 10.5 to the Registrant’s Amendment No. 1 to Registration Statement on Form S-1, filed on March 24, 2021 (File No. 333-253599)). | |
10.6 | | | Exclusive Patent License Agreement by and between TransCode Therapeutics, Inc. and The General Hospital Corporation, d/b/a Massachusetts General Hospital, dated as of October 26, 2018 (Incorporated by reference to Exhibit 10.7 to the Registrant’s Registration Statement on Form S-1, filed on February 26, 2021 (File No. 333-253599)). | |
10.7# | | | First Amendment to Exclusive Patent License Agreement by and between TransCode Therapeutics, Inc. and The General Hospital Corporation, d/b/a Massachusetts General Hospital, dated as of October 30, 2020 (Incorporated by reference to Exhibit 10.8 to the Registrant’s Registration Statement on Form S-1, filed on February 26, 2021 (File No. 333-253599)). | |
10.8# | | | 2021 Employee Stock Purchase Plan (Incorporated by reference to Exhibit 10.8 to the Registrant’s Registration Statement on Form S-1, filed on March 24, 2021 (File No. 333-253599)). | |
10.9# | | | Employment Agreement, dated as of March 24, 2021, by and Between TransCode Therapeutics, Inc. and Robert Michael Dudley (Incorporated by reference to Exhibit 10.9 to the Registrant’s Registration Statement on Form S-1, filed on April 8, 2021 (File No. 333-253599)). | |
Exhibit
number |
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Description
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10.10# | | | Letter Agreement, dated as of March 24, 2021, by and Between TransCode Therapeutics, Inc. and Robert Michael Dudley (Incorporated by reference to Exhibit 10.10 to the Registrant’s Amendment No. 2 to Registration Statement on Form S-1, filed on April 8, 2021 (File No. 333-253599)). | |
10.11# | | | Employment Agreement, dated as of March 24, 2021, by and Between TransCode Therapeutics, Inc. and Thomas A. Fitzgerald (Incorporated by reference to Exhibit 10.11 to the Registrant’s Amendment No. 2 to Registration Statement on Form S-1, filed on April 8, 2021 (File No. 333-253599)). | |
10.12# | | | Letter Agreement, dated as of March 24, 2021, by and Between TransCode Therapeutics, Inc. and Thomas A. Fitzgerald (Incorporated by reference to Exhibit 10.12 to the Registrant’s Amendment No. 2 to Registration Statement on Form S-1, filed on April 8, 2021 (File No. 333-253599)). | |
21.1* | | | List of Subsidiaries of the Registrant. | |
23.1* | | | Consent of Withum Smith+Brown, PC, independent registered public accounting firm. | |
23.2* | | | Consent of Goodwin Procter LLP (included in Exhibit 5.1). | |
24.1* | | | Power of Attorney (included on signature page to this registration statement). | |
107* | | | Filing Fee Table. | |
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NAME
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TITLE
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DATE
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Robert Michael Dudley
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Director and Chief Executive Officer (Principal Executive Officer)
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, 2022
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Thomas A. Fitzgerald, MBA
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Director and Chief Financial Officer (Principal Financial and Accounting Officer)
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, 2022
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Philippe P. Calais, PhD
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Director
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, 2022
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Erik Manting, PhD
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Director
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, 2022
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Magda Marquet, PhD
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Director
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, 2022
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