Leap Therapeutics Secures $58.88 Million for Digital Asset Treasury Strategy

In a bold move to enhance its financial strategy and support ongoing therapeutic development, Leap Therapeutics (Nasdaq: LPTX) has announced a private placement worth $58.88 million. This significant cash infusion, spearheaded by Winklevoss Capital, marks a pivotal step in initiating a digital asset treasury strategy that has the potential to shape the company's future trajectory.

The Details of the Placement

Leap Therapeutics has entered into a securities purchase agreement for this PIPE (Private Investment in Public Equity) offering, which entails the sale of approximately 95.8 million shares of common stock or pre-funded warrants, along with warrants to purchase an additional nearly 71.9 million shares. The exercise price for these warrants is set at $0.5335 per share, effectively bringing the total exercise price per unit to approximately $0.61439.

Winklevoss Capital, a well-known investment firm founded by the Winklevoss twins, is not just providing capital. They are committed to offering strategic guidance that aims to position Leap for long-term growth in the realm of digital assets. This collaboration is expected to foster innovation and enhance value for shareholders as Leap navigates the complexities of the digital asset landscape.

Implications for Therapeutic Development

A portion of the funds raised will be allocated to continue the development of Leap's therapeutic programs. Notably, this includes FL-501 and sirexatamab, a monoclonal antibody that recently completed a Phase 2 clinical trial aimed at colorectal cancer. The findings from this trial will be shared during a presentation at the upcoming European Society for Medical Oncology (ESMO) Congress 2025, scheduled for October 19 in Berlin, Germany. This trial's outcomes could significantly influence the company's standing in the oncology market.

Governance Changes and Future Outlook

As part of this financing agreement, Leap Therapeutics will expand its Board of Directors from 10 to 12 members, with Winklevoss Capital gaining the right to nominate two individuals, including one to serve as chair. This governance change reflects an effort to infuse fresh perspectives that align with the company's strategic goals.

The anticipated closure of this private placement is expected to occur around October 8, 2025, pending the satisfaction of customary closing conditions. Leap has enlisted Parcrest to serve as the placement agent and has secured legal counsel from Morgan, Lewis & Bockius LLP.

Leap has signaled its intention to keep investors and stakeholders informed about its treasury activities in the near future, indicating a strong commitment to transparency and engagement as it embarks on this new phase of growth.

Regulatory Considerations

The securities sale is in accordance with the Securities Act of 1933, relying on exemptions that prevent the need for a full registration, given the private investment nature. However, Leap will file a registration statement with the SEC to facilitate the resale of these securities in compliance with securities regulations.

About Leap Therapeutics

Established with a focus on targeted and immuno-oncology therapeutics, Leap Therapeutics aims to stabilize and enhance shareholder value through innovative therapies and now, digital assets. The company's pipeline includes promising candidates such as sirexatamab and FL-501, both of which highlight its commitment to addressing significant unmet needs in the oncology sector. For further information on Leap Therapeutics and its initiatives, interested parties can visit Leap's official website or refer to its public SEC filings.

About Winklevoss Capital

Winklevoss Capital, founded in 2012 by Cameron and Tyler Winklevoss, specializes in investing in frontier technologies. Their expertise and financial backing are expected to play a crucial role in Leap's strategy moving forward, especially in the dynamic field of digital assets.

As Leap Therapeutics embarks on this new journey, the intersection of biotechnology advancements and digital financial strategies could pave the way for innovative opportunities that benefit both the company and its shareholders.