PDS Biotech Raises Up to $22.55 Million to Advance Cancer Drug Programs

Key Points

• PDS Biotechnology announced a PIPE financing of up to $22.55 million led by Nant Capital.
• The company expects an initial $11.55 million closing around September 11, 2026, subject to closing conditions.
• A further $11 million could be invested after PDS Biotech submits a planned Phase 3 protocol for PDS0301 to the FDA.
• Patrick Soon-Shiong is expected to join PDS Biotech’s board as a Nant designee.
• The company plans to use proceeds for debt repayment, working capital, and continued development of its cancer immunotherapy programs.

PDS Biotech (Nasdaq: PDSB) has secured financing that could raise up to $22.55 million to support its cancer-treatment pipeline and general corporate needs.

Nant Capital, an affiliate of Dr. Patrick Soon-Shiong’s NantWorks, led the private investment in public equity, or PIPE, financing. Existing PDS Biotech investors also participated.

Initial Financing Expected to Provide $11.55 Million

PDS Biotech expects to raise about $11.55 million at the initial closing through the sale of common stock or pre-funded warrants and accompanying stock-purchase warrants.

The company expects the initial closing to occur on or about September 11, 2026, provided it meets or waives the required conditions.

The financing price is $0.2825 per unit for common shares and accompanying warrants. Each warrant allows the holder to purchase one-half of a common share. The company did not disclose the warrant exercise price in the announcement.

Second Investment Depends on Phase 3 FDA Submission

The transaction includes a potential second closing worth $11 million.

Nant Capital would invest $10 million and AB Group Ltd. would invest $1 million if PDS Biotech submits a registrational Phase 3 clinical-trial protocol for PDS0301 to the FDA. The company plans to develop that protocol with Nant.

The milestone closing remains subject to additional conditions and is not guaranteed.

Funding Supports PDS0301 in Metastatic Colorectal Cancer

PDS Biotech plans to use the financing to move PDS0301 toward late-stage clinical development.

PDS0301 is an experimental immunotherapy being studied in patients with microsatellite-stable and mismatch repair-proficient metastatic colorectal cancer. These forms of colorectal cancer have historically responded poorly to immunotherapy.

The company cited interim data from an NCI-led Phase 2 study involving 22 patients. PDS Biotech said 80% of patients treated with PDS0301 plus standard care were alive for at least 24 months.

The result comes from a small, interim study and does not establish that PDS0301 is safe or effective.

Soon-Shiong Set to Join Board

Nant will have the right to name two PDS Biotech directors. Dr. Soon-Shiong is expected to be one of those directors while Nant holds at least 15% of PDS Biotech’s outstanding common stock.

PDS Biotech will also give NantWorks a one-year exclusive right to negotiate a license for PDS0101, its experimental HPV-targeted cancer immunotherapy. The announcement does not guarantee that the companies will complete a licensing agreement.

Share Dilution Is a Key Consideration

PDS Biotech said it will use the funds to repay debt, support working capital, and fund research, clinical development, and other corporate expenses.

The financing provides additional capital, but it also involves substantial potential dilution for existing shareholders through new shares, pre-funded warrants, and common stock warrants. PDS0301 and PDS0101 remain investigational, and both programs face clinical, regulatory, and commercial risks.