Karyopharm announces $100M strategic financing plan

Karyopharm (KPTI) Therapeutics announced that it has entered into comprehensive financing and capital structure transactions expected to provide the Company with $100M of financial flexibility and additional capital, extending the Company’s cash runway into the Q2 of FY26 based on the Company’s current operating plans. Each of the financing and capital structure transactions is expected to close on or around October 10, subject to the satisfaction of customary closing conditions. The Company’s existing senior lenders have agreed to multi-faceted financing transactions with the following key components: $67.5M in financial flexibility and new capital consisting of $27.5M in new term loan borrowings and new convertible notes, $25M of near-term deferrals of interest and royalty payments, and a $15M temporary reduction in the Company’s minimum liquidity covenant. In addition, holders of the Company’s convertible notes due 2029 have agreed to exchange $15M of their notes for newly issued shares of common stock or pre-funded warrants in lieu thereof. Holders of approximately $24.25M aggregate principal amount of the Company’s senior unsecured convertible notes due October 15 have agreed to exchange their notes and accrued interest due thereon at a discount to par value for newly issued shares of common stock, or pre-funded warrants in lieu thereof, plus warrants to purchase shares of common stock. In addition, the Company has entered into a securities purchase agreement for a private placement in which the Company agreed to sell 1,487,917 shares of common stock and accompanying warrants to purchase 1,317,771 shares of common stock with an exercise price of $6.64 per share. The warrants issued in the private placement will be exercisable on or before the 30th day following the public announcement of top-line results from the Company’s XPORT-EC-042 trial in endometrial cancer, which is anticipated in mid-2026. The private placement is expected to result in gross proceeds of approximately $8.75M before deducting any offering expenses. The Company intends to use the proceeds of the financing transactions to pay transaction expenses and for general corporate purposes, including to support the Company’s ongoing and planned clinical trial activities. At closing of the financing transactions, the Company will issue an aggregate of 7,223,982 newly issued shares of common stock, newly issued pre-funded warrants to purchase an aggregate of 2,913,136 shares of common stock, and newly issued warrants to purchase an aggregate of 5,918,358 shares of common stock with an exercise price of $6.64 per share, a 15% premium to the Nasdaq minimum price. In addition, the Company will reduce the exercise price of outstanding warrants to purchase 3,068,417 shares from $16.50 per share to $6.64 per share.