Form 8-K
0001183765 False 0001183765 2020-08-06 2020-08-06 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 6, 2020

_______________________________

Molecular Templates, Inc.

(Exact name of registrant as specified in its charter)

_______________________________

Delaware001-3297994-3409596
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

9301 Amberglen Blvd, Suite 100

Austin, Texas 78729

(Address of Principal Executive Offices) (Zip Code)

(512) 869-1555

(Registrant's telephone number, including area code)

 

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 Par Value Per ShareMTEMThe Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On August 6, 2020, Molecular Templates, Inc. (the "Company") announced its financial results for the second quarter of 2020 ended June 30, 2020. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02 and in the press release furnished as Exhibit 99.1 to this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this Item 2.02 and in the press release furnished as Exhibit 99.1 to this current report on Form 8-K shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.
   
Exhibit 99.1 Press Release dated August 6, 2020
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 Molecular Templates, Inc.
   
  
Date: August 6, 2020By: /s/ Eric E. Poma, Ph.D.        
  Eric E. Poma, Ph.D.
  Chief Executive Officer
  

 

EdgarFiling

EXHIBIT 99.1

Molecular Templates, Inc. Reports Second Quarter 2020 Financial Results

AUSTIN, Texas, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Molecular Templates, Inc. (Nasdaq: MTEM, “Molecular Templates,” “MTEM” or “the Company”), a clinical-stage biopharmaceutical company focused on the discovery and development of proprietary targeted biologic therapeutics, engineered toxin bodies (ETBs), today reported financial results for the second quarter of 2020.

“Since our last quarterly update, we presented preclinical data at AACR on four preclinical ETB programs, provided an update on the ongoing Phase I study for MT-5111, and strengthened our balance sheet through a new debt facility and our ATM,” said Eric Poma, Ph.D., Molecular Templates’ Chief Executive and Chief Scientific Officer. “In the second half of 2020, we expect to report interim clinical data from our three MT-3724 Phase 2 studies and additional data from the MT-5111 Phase 1 study, and also file the IND for MT-6402, our PD-L1-targeted ETB with antigen seeding.”

Company Highlights, Pipeline Status, and Upcoming Milestones

Corporate

MT-3724 (CD20 ETB)

TAK-169 (CD38 ETB)

MT-5111 (HER2 ETB)

Research

COVID-19 Impact

Financial Results

The net loss attributable to common shareholders for the second quarter of 2020 was $31.2 million, or $0.68 per basic and diluted share. This compares with a net loss attributable to common shareholders of $9.2 million, or $0.25 per basic and diluted share, for the same period in 2019.

Revenues for the second quarter of 2020 were $6.9 million, compared to $5.4 million for the same period in 2019. Revenues for the second quarter of 2020 were comprised of revenues from collaborative research and development agreements with Takeda and Vertex, as well as grant revenue from CPRIT. Total research and development expenses for the second quarter of 2020 were $30.4 million, compared with $10.2 million for the same period in 2019. Total general and administrative expenses for the second quarter of 2020 were $6.4 million, compared with $4.6 million for the same period in 2019.

As of June 30, 2020, MTEM’s cash and investments totaled $91.0 million. With the addition of $50 million in gross proceeds raised through MTEM’s ATM facility after the end of the quarter, MTEM expects to be able to fund operations into 2H22.

About Molecular Templates

Molecular Templates is a clinical-stage company focused on the discovery and development of targeted biologic therapeutics. Our proprietary drug platform technology, known as engineered toxin bodies, or ETBs, leverages the resident biology of a genetically engineered form of Shiga-like Toxin A subunit to create novel therapies with potent and differentiated mechanisms of action for cancer and other serious diseases.

Forward-Looking Statements

This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”). Molecular Templates disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Act’s Safe Harbor for forward-looking statements.  All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. In addition, when or if used in this press release, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict” and similar expressions and their variants, as they relate to Molecular Templates may identify forward-looking statements.  Examples of such statements include, but are not limited to, statements relating to the development of the MT-3724, MT-5111, TAK-169, and MT-6402; the expected timing of submitting various IND applications and conducting studies; the expected participation and presentation at upcoming medical conferences; the anticipated effects of the COVID-19 pandemic on the Company’s ongoing clinical studies, manufacturing and preclinical development; and the Company’s belief that its proprietary biologic drug platform technology, or ETBs, provides for a differentiated mechanism of action that may address some of the limitations associated with currently available cancer therapeutics.

Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the uncertainties inherent in the preclinical and clinical development process; whether the Company’s cash resources will be sufficient to fund its continuing operations for the periods and/or trials anticipated; the ability of the Company to protect its intellectual property rights; risks from global pandemics including COVID-19; and legislative, regulatory, political and economic developments, as well as those risks identified under the heading “Risk Factors” in the Company’s filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise.

Contact:

Adam Cutler
Chief Financial Officer
adam.cutler@mtem.com
862-204-4006



Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

 Three Months Ended
June 30,
 Six Months Ended
June 30,
 
 2020  2019 2020  2019 
Research and development revenue, related party$3,063  $5,211 $3,396  $11,624 
Research and development revenue, other 2,977     4,444    
Grant revenue 869   236  3,210   831 
Total revenue 6,909   5,447  11,050   12,455 
Operating expenses:              
Research and development 30,414   10,243  51,045   18,697 
General and administrative 6,412   4,605  12,059   9,540 
Total operating expenses 36,826   14,848  63,104   28,237 
Loss from operations 29,917   9,401  52,054   15,782 
Interest and other income, net 286   543  758   1,053 
Interest and other expense, net (360)  (301) (708)  (594)
Loss on extinguishment of debt (1,237)    (1,237)   
Change in fair value of warrant liabilities    6     2 
Loss before provision for income taxes 31,228   9,153  53,241   15,321 
Provision for income taxes      5    
Net loss 31,228   9,153  53,246   15,321 
Net loss attributable to common shareholders$31,228  $9,153 $53,246  $15,321 
Net loss per share attributable to common shareholders:              
Basic and diluted$0.68  $0.25 $1.17  $0.42 
Weighted average number of shares used in net loss per share calculations: 45,725,481   36,819,846  45,687,278   36,779,638 
Basic and diluted              


Molecular Templates, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

 June 30,
2020 (unaudited)
  December 31,
2019
 
ASSETS       
Current assets:       
Cash and cash equivalents$27,645  $85,451 
Marketable securities, current 63,361   39,633 
Prepaid expenses 3,347   2,318 
Grants revenue receivable 5,900   7,100 
Accounts receivable, related party 3,167   408 
In-process research and development - held for sale 4,500   4,500 
Other current assets 160   489 
Total current assets 108,080   139,899 
Marketable securities, non-current    1,510 
Operating lease right-of-use assets, non-current 9,266   9,959 
Property and equipment, net 20,224   18,158 
Other assets 4,840   4,676 
Total assets$142,410  $174,202 
LIABILITIES AND STOCKHOLDERS’ EQUITY       
Current liabilities:       
Accounts payable$1,660  $1,465 
Accrued liabilities 14,129   14,544 
Deferred revenue, current 13,284   8,511 
Deferred revenue, current, related party 5,218   8,780 
Other current liabilities, related party 5,325    
Other current liabilities 1,785   2,501 
Total current liabilities 41,401   35,801 
Deferred revenue, long-term 9,728   18,944 
Deferred revenue, long-term, related party 1,849   441 
Long-term debt, net 14,721   2,940 
Operating lease liabilities, non-current 10,771   11,682 
Other liabilities, related party 6,654    
Other liabilities 1,427   1,366 
Total liabilities 86,551   71,174 
Commitments and contingencies (Note 10)       
Stockholders’ equity       
Preferred stock, $0.001 par value:       
Authorized: 2,000,000 shares at June 30, 2020 and December 31, 2019; issued and
  outstanding: 250 shares at June 30, 2020 and December 31, 2019
     
Common stock, $0.001 par value:       
Authorized: 150,000,000 shares; issued and outstanding: 45,778,876 shares at
  June 30, 2020 and 45,589,157 shares at December 31, 2019
 46   46 
Additional paid-in capital 273,012   267,089 
Accumulated other comprehensive income 172   18 
Accumulated deficit (217,371)  (164,125)
Total stockholders’ equity 55,859   103,028 
Total liabilities and stockholders’ equity$142,410  $174,202 

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Cover
Aug. 06, 2020
Document Type 8-K
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Document Period End Date Aug. 06, 2020
Entity File Number 001-32979
Entity Registrant Name Molecular Templates, Inc.
Entity Central Index Key 0001183765
Entity Tax Identification Number 94-3409596
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 9301 Amberglen Blvd, Suite 100
Entity Address, City or Town Austin
Entity Address, State or Province TX
Entity Address, Postal Zip Code 78729
City Area Code 512
Local Phone Number 869-1555
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.001 Par Value Per Share
Trading Symbol MTEM
Security Exchange Name NASDAQ
Entity Emerging Growth Company false