Lantern Pharma (NASDAQ: LTRN), a clinical-stage precision oncology company leveraging artificial intelligence and machine learning, 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 a price of $2.06 per share. Concurrently, Lantern announced a private placement of unregistered warrants and plans to create an independent business entity composed of its AI platform, withZeta.ai, along with related technologies and personnel.
The offering underscores Lantern's strategy to advance its pipeline of cancer therapies while monetizing its AI capabilities. The company's proprietary RADR platform uses AI and machine learning to analyze genomic data and identify patient populations most likely to respond to its drug candidates. Lantern's clinical pipeline includes LP-184, an acylfulvene being developed for solid tumors and, through its wholly owned subsidiary Starlight Therapeutics, for pediatric CNS cancers; LP-284, a TC-NER targeting compound for hematologic and solid tumors; and LP-300, a cisplatin/ethacraplatin analog being evaluated in the HARMONIC Phase 2 trial for never-smoker patients with relapsed advanced lung adenocarcinoma following TKI treatment.
The spin-off of withZeta.ai, which is already commercially available as a subscription-based research platform for the global biomedical and drug development community, represents a new revenue stream for Lantern. According to the press release, the independent entity will focus on expanding the platform's reach and generating subscription income, while Lantern continues to focus on its core drug development programs.
Proceeds from the offering are expected to support Lantern's clinical trials, including the ongoing HARMONIC trial and the development of LP-184 and LP-284, as well as general corporate purposes. The company operates an AI Center of Excellence in Bengaluru, India, and is headquartered in Dallas, Texas.
This strategic move highlights the growing trend of AI-driven biotech firms separating their technology platforms from drug development to unlock shareholder value. By creating a standalone entity for withZeta.ai, Lantern aims to attract partners and customers beyond its own pipeline, potentially accelerating the adoption of AI in drug discovery and development. The offering also provides near-term capital to fund ongoing clinical work without diluting existing shareholders excessively, given the relatively small size of the raise.
For more details on the offering and Lantern's strategy, the full press release is available at https://ibn.fm/6Dy4I. Additional information about Lantern Pharma can be found in the company’s newsroom at https://ibn.fm/LTRN.