Lantern Pharma Inc. Announces $4.0M Registered Direct Offering and Warrants

What Happened
Lantern Pharma Inc. announced a registered direct offering and a concurrent private placement, entering into a securities purchase agreement on September 28, 2026 and closing the transactions on September 30, 2026. The company sold 1,469,725 shares of common stock at $1.09 per share and issued pre-funded warrants to purchase up to 2,200,000 shares at $1.0899 each (exercise price $0.0001) in the registered offering. In a concurrent private placement, Lantern issued warrants to purchase up to 3,669,725 shares at a $1.09 exercise price. Gross proceeds to the company from the offering were approximately $4.0 million before fees and expenses.

Key Details

• Offering closed Sept 30, 2026; purchase agreement dated Sept 28, 2026.
• Common shares sold: 1,469,725 at $1.09; Pre-Funded Warrants for up to 2,200,000 shares at $1.0899.
• Concurrent private-placement Purchase Warrants cover up to 3,669,725 shares, exercisable only after stockholder approval and expire five years after initial exercise.
• Beneficial ownership cap on warrant exercise: 4.99% (or 9.99% if elected); elections to increase take effect after 61 days.
• Placement agent (Rodman & Renshaw, LLC) fee: 7% cash of gross proceeds + reimbursement of certain expenses; placement agent received warrants equal to 5% of shares sold (exercise price $1.3625) and a 3% cash fee on gross exercise price for exercises of Purchase Warrants.
• The common shares and pre-funded warrants were offered under an existing Form S-3 shelf; company will seek stockholder approval within 90 days of Sept 28, 2026 and will solicit votes or call meetings every 90 days until approval or warrant termination.

Why It Matters
This transaction provides Lantern with near-term capital (about $4.0M gross) to support working capital and general corporate purposes. Investors should note potential dilution from the issued pre-funded warrants, purchase warrants and placement agent warrants if exercised. The Purchase Warrants cannot be exercised until stockholders approve issuance of the underlying shares, which limits immediate dilution but creates execution risk tied to future shareholder votes. Placement agent fees and warrants increase the effective cost of the financing.