Better Therapeutics (Nasdaq:BTTX) today announced a private placement of nearly 7.9 million shares of its common stock.
The San Francisco-based digital therapeutic developer priced the shares at $0.825 per share. That represents the closing price of Better Therapeutics’ common stock on April 5, 2023. The private placement totals gross proceeds of approximately $6.5 million.
Better Therapeutics said the $6.5 million in proceeds comes before deducting offering expenses. Certain officers and directors contributed “strong participation” in the placement, according to a news release.
The company said it intends to use the proceeds to “support the execution of key milestones.” This should extend its runway through the date of potential FDA marketing authorization of the company’s flagship product, BT-001. It also extends the runway to complete other strategic initiatives.
Better Therapeutics said the financing represents one element of a three-tiered strategy discussed on its latest earnings call. The company expects the private placement to close on or about April 10, 2023. It remains subject to customary closing conditions. Chardan and Brookline Capital Markets, serve as acting as co-placement agents for the private placement.
Better Therapeutics continues to extend cash runway
The private placement for Better Therapeutics comes after a series of moves aimed at lengthening its cash runway. Better Therapeutics has big plans for 2023, but took cost-reduction measures to ensure those come to fruition.
Last month, the company reported fourth-quarter results right on the heels of a 35% headcount reduction. Better Therapeutics said the headcount cut comes as part of a cost reduction initiative. It all goes toward improving the cash runway as the company focuses on “long-term success.”
Better Therapeutics develops a range of digital therapeutics, including its flagship BT-001 for treating type 2 diabetes. The company submitted an FDA de novo request in September 2022 for the therapeutic.
The company said in its quarterly results that it commenced preparations for the potential launch fo BT-001 in mid-2023. That remains contingent on FDA authorization. Better Therapeutics also has a randomized, controlled real-world trial for BT-001. It expects results in the fourth quarter of 2023.
Additionally, Better Therapeutics plans to apply for FDA breakthrough device designation for its investigational liver therapeutic. The prescription digital therapeutic treats nonalcoholic fatty liver disease (NAFLD) and nonalcoholic steatohepatitis (NASH). Better Therapeutics expects to submit its application in the first half of 2023.
