Biotech Expands Financing to CA$2M as AI-Driven Cancer Drug Programs Advance

1. Rakovina Therapeutics Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Rakovina Therapeutics Inc. (RKV:TSX.V) announced that its previously disclosed financing has been increased to approximately CA$2.0 million. The company stated that, on Jan. 27, it reached an agreement in principle with an existing investor to invest an additional CA$1.0 million through a non-brokered private placement of an unsecured convertible debenture and two million common share purchase warrants.

According to the company, the convertible debenture is expected to include a maturity date of Jan. 28, 2029, a conversion price of CA$0.20 per common share, and an interest rate of 12 per cent per annum payable semiannually in cash. Each warrant would be exercisable at CA$0.20 per common share until Jan. 28, 2029, subject to customary adjustments. The company stated that "a subsequent news release will be issued in connection with the debenture private placement once financing terms have been finalized."

Concurrently, the company proposed to offer up to 8,333,334 common shares at a price of CA$0.12 per share for additional gross proceeds of up to approximately CA$1.0 million through a separate non-brokered private placement. The company noted that it may pay finders' fees to eligible parties that introduce subscribers to the financing.

Rakovina stated that it intends to use the aggregate gross proceeds to provide near-term working capital to support continuing corporate activities and strategic initiatives while it evaluates longer-term financing alternatives. Closing of the private placements remains subject to necessary corporate and regulatory approvals, including approval from the TSX Venture Exchange, and execution of definitive subscription agreements. Securities issued under the placements will be subject to a statutory hold period of four months plus one day from the issuance date.

Global Oncology Drug Market Continues Expansion Amid Rising Cancer Incidences

The oncology drug sector has been shaped by rising disease prevalence, aging populations, and continued research activity. According to a report from Nova One Advisor, the global oncology drugs market was calculated at US$179.36 billion in 2024 and was expected to reach US$366.24 billion by 2034, reflecting a compound annual growth rate of 7.4%. The report stated that market expansion had been "driven by the rising incidences of cancer, continuous advancements in therapies and increased access to affordable cancer treatments," while manufacturers had focused on "expanding product pipelines of innovative therapies and treatments." It also noted that targeted therapies captured the largest market share in 2024 and that immunotherapy was expected to grow significantly, as it "dynamically modifies the immune system to attack cancer cells in multiple directions and targets."

More recent industry analysis reinforced the scale and growth drivers of the sector. A February 10 report from Allied Market Research published via PR Newswire stating that "rise in geriatric population, surge in prevalence of cancer, early screening of the cancer, and higher number of R&D activities to develop cancer therapeutics significantly contribute toward the growth of the market." It further observed that targeted therapies had been expected to maintain the largest share because of "identification of molecular targets of cancer cells, fewer adverse effects, and availability of number of targeted therapeutics," while demand for immunotherapy had been anticipated to increase due to its effectiveness.

Healthcare spending trends also reflected the financial scale of cancer treatment. Motley Fool wrote on February 12 that cancer remained "the second-leading cause of death in the U.S.," with more than two million new cases expected annually. The publication noted that treatment costs had continued to rise, stating that "in 2020, treating cancer in the U.S. cost roughly US$200 billion," and that this total had been projected to increase to more than US$245 billion by 2030.

"Preclinical ATR Inhibitors Exhibit Similarities to Clinical-Stage Drugs," Loe Noted

In a December 4 research report from Leede Financial Inc., Dr. Douglas Loe stated that Rakovina Therapeutics Inc.'s "preclinical ATR inhibitors, Compound A and Compound C, exhibit similarities to two clinical-stage drugs in the same class." He reported that the company "presented new proof-of-concept data on Compound A and Compound C, two small-molecule, ATR inhibitors identified through its partner's artificial intelligence (AI) platform," and that the data were shared during "a poster session on Nov. 23 and 24 at the Society for Neuro-Oncology's annual meeting in Hawaii."

Loe stated that Compound A and Compound C were "two distinct ataxia-telangiectasia & Rad3-related (ATR)-inhibiting drugs identified through partner Variational AI's Enki AI platform." He explained that ATR inhibitors were "members of the PIKK (phosphatidylinositol 3-kinase-related kinase) family of enzymes, known to be biomarkers of DNA damage responses that are triggered in cancer cells."

According to the report, Compound A and Compound C showed "comparable ability to inhibit ATR's kinase" in biochemical assays. Loe also reported that, in enzyme inhibition assays, the compounds demonstrated "selectivity for inhibiting other PIKK enzymes," and that "along with ATR, they were shown to inhibit an immune-relevant protein called mTOR (mammalian target of rapamycin)." He further noted that the compounds "showed little to no inhibition of other protein kinases."

In its kt-3283 PARP / HDAC inhibitor program, the company reported that it will finalize the joint venture with Nano Palm Ltd. to develop formulation and improve in vivo delivery. The collaboration combines Rakovina's AI-enabled drug discovery with NanoPalm's delivery platform. The company stated that planned 2026 milestones for this program include joint venture funding efforts, pursuit of partnerships related to antibody drug conjugate payloads, and presentation of nano lipid formulation data at peer-reviewed meetings.

Multiple Drug Development Programs Outline 2026 Milestones

The company reported that its kt-5000AI ATR and mTOR inhibitor program includes several 2026 milestones. These include presentation of in vivo model data at peer-reviewed meetings and results from lead optimization work conducted through its expanded collaboration with Variational AI. The company also stated that chemical synthesis and evaluation activities are being conducted in its laboratories and that data presentations at peer-reviewed meetings are planned.

For the kt-2000AI PARP1 inhibitor program, Rakovina reported that select compounds from initial screening have been synthesized and are undergoing evaluation. The company stated that PARP activity and ADME data from the first round of compounds will be used to further train the AI model for refinement and lead candidate selection. The program's 2026 milestones include receipt of additional AI modeling outputs and presentation of lead compound data at peer-reviewed scientific meetings.

In its kt-3283 PARP and HDAC inhibitor program, the company reported that it has formed a joint venture with Nano Palm Ltd. to develop formulation and improve in vivo delivery. The collaboration combines Rakovina's AI-enabled drug discovery engine with NanoPalm's delivery platform. The company stated that planned 2026 milestones for this program include joint venture funding efforts, pursuit of partnerships related to antibody drug conjugate payloads, and presentation of nano lipid formulation data at peer-reviewed meetings.

Ownership and Share Structure¹

Edison Oncology currently holds a 12% stake in Rakovina Therapeutics. Management and reporting insiders own 4%, with Executive Chairman Jeffrey Bacha and Alfredo De Lucrezia representing the top individual shareholders. The remainder is held by friends, family, and retail investors.

In June 2025, Rakovina completed a 10-to-1 share consolidation. Shareholders now hold one post-consolidation common share for every ten pre-consolidation shares previously held.

The company has approximately 21.15 million shares outstanding, with a market capitalization of about CA$2.9 million. Over the past 52 weeks, its share price has ranged between CA$0.085 and CA$1.70.