Willow Biosciences Inc. (TSX: WLLW) announced Thursday it has canceled a planned C$2 million private placement offering, saying it will pursue less dilutive financing alternatives.
The biotechnology company is in advanced talks to sell royalty rights for development programs after receiving interest from multiple parties, according to CEO Chris Savile.
“Willow has been approached by multiple third parties to acquire the royalty rights on two development programs and is in late-stage negotiations for one of the programs,” Savile said in a statement.
The company had announced the non-brokered private placement in November 2024, intending to raise between C$800,000 and C$2 million through unit offerings at C$0.08 per unit.
The shift in financing strategy comes as Willow reported shrinking cash reserves, down to C$859,000 at the end of September from C$3.1 million in December 2023, according to recent filings. However, third-quarter revenue reached a record C$1.7 million, driven by research partnerships including a major deal with Laurus Labs signed in May.
The Laurus Labs partnership guarantees Willow C$4 million in research payments in its first year, plus future royalties on pharmaceutical ingredients manufactured using Willow’s synthetic biology platform.
The company lately pivoted from cannabinoid production to focus on developing bio-based processes for pharmaceutical and consumer product ingredients. For the first nine months of 2024, revenue grew to C$2.8 million from C$1.1 million a year earlier.
[[{“value”:”The company’s seeking ‘less dilutive’ financing as cash reserves drop in recent quarters; in talks with multiple parties over development program rights.
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