Lantern Pharma (NASDAQ: LTRN), a clinical-stage AI-driven precision oncology company, has entered into a definitive agreement for a registered direct offering expected to generate approximately $4.4 million in gross proceeds. The company will sell 2,135,923 shares of common stock, or pre-funded warrants in lieu thereof, at $2.06 per share. Additionally, Lantern announced a concurrent private placement of unregistered warrants and revealed plans to create an independent business entity composed of its AI platform, withZeta.ai, and related technologies and personnel.
The offering comes as Lantern Pharma continues to advance its clinical pipeline, which includes LP-184 (acylfulvene), LP-284 (a TC-NER targeting compound), and LP-300 (cisplatin/ethacraplatin analog). LP-300 is currently being evaluated in the HARMONIC Phase 2 trial targeting never-smoker patients with relapsed advanced lung adenocarcinoma following TKI treatment. LP-184 is also being developed for pediatric CNS cancers through Starlight Therapeutics, Lantern’s wholly owned CNS-focused subsidiary.
The decision to spin off withZeta.ai into an independent entity is a notable strategic move. withZeta.ai, Lantern’s multi-agentic AI co-scientist platform, is now commercially available as a subscription-based research platform for the global biomedical and drug development community, representing a new revenue stream for the company. By creating a separate business, Lantern aims to unlock the full potential of its AI technology, potentially attracting new investment and partnerships focused solely on AI-driven drug discovery.
This development could have significant implications for the precision oncology industry. If successful, the spin-off could accelerate the adoption of AI in drug development, reducing time and costs associated with bringing new cancer therapies to market. For investors, the offering provides an opportunity to participate in Lantern’s growth, while the spin-off may create additional value by allowing the market to separately value the AI platform and the drug pipeline.
Lantern Pharma operates an AI Center of Excellence in Bengaluru, India, and is headquartered in Dallas, Texas. The company’s proprietary RADR platform leverages AI and machine learning to transform the development of cancer therapies. The latest news and updates relating to LTRN are available in the company’s newsroom at https://ibn.fm/LTRN.
The registered direct offering is expected to close soon, subject to customary conditions. Lantern Pharma plans to use the net proceeds for working capital and general corporate purposes, including the advancement of its clinical programs and the planned spin-off of withZeta.ai.
