Can-Fite BioPharma Ltd (NYSE: CANF) secured $4 million in gross proceeds through a warrant exercise agreement while reporting extended survival trends in its pivotal Phase 3 liver cancer study.

The clinical-stage biotechnology firm observed longer-than-expected blinded overall survival in its ongoing trial evaluating Namodenoson for advanced hepatocellular carcinoma (HCC). The study focuses on HCC patients with Child-Pugh B7 cirrhosis, utilizing overall survival as its primary efficacy endpoint.

Phase 3 Liver Cancer Trial Progress

Because the observed data reflect a pooled, blinded population across both treatment arms, the company cannot draw conclusions regarding drug efficacy or comparative differences yet. However, due to the prolonged survival rates, management is assessing an earlier timeline for the trial’s planned interim analysis.

Warrant Exercise Details

In a concurrent financial update, the firm secured an immediate warrant exercise agreement for up to 1,591,738 American Depositary Shares (ADSs). Originally issued in March 2026 with a $5 exercise price, the company reduced the exercise price to $2.50 per ADS to encourage immediate cash execution.

To incentivize the transaction, the business will issue new unregistered warrants allowing holders to purchase up to 3,183,476 additional ADSs at $2.50 per share. The initial exercise generates roughly $4 million in gross proceeds prior to deducting placement agent fees.

Management plans to allocate the net capital toward research and development, clinical trials, working capital and general corporate activities.

What the Numbers Show

The warrant structure reveals a significant dilution potential relative to immediate capital raised. For every one ADS exercised at the reduced price of $2.50, the company is issuing rights to purchase two additional ADSs at the same price. This 1:2 ratio between exercised shares and new warrants issued suggests a strategy prioritizing immediate liquidity for clinical operations over long-term share count preservation.

Can Fite Biopharma shares were down 22.49% at $2.55 at the time of publication Wednesday.

Can-Fite BioPharma Ltd. (NYSE: CANF) (TASE: CANF) has entered into a definitive agreement for the immediate exercise of outstanding warrants to purchase up to 1,591,738 American Depositary Shares (ADSs). The company will issue these shares at a reduced exercise price of $2.50 per ADS, down from the original $5.00 per ADS set when the warrants were issued in March 2026.

The closing of the offering is expected to occur on or about September 3, 2026, subject to the satisfaction of customary closing conditions. The new warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended. Can-Fite has agreed to file a registration statement with the SEC covering the resale of the shares of ADSs issuable upon exercise of the new warrants.

Transaction Structure and Proceeds

In consideration for the immediate exercise of the warrants for cash, Can-Fite will issue new unregistered warrants to purchase up to 3,183,476 ADSs. These new warrants will have an exercise price of $2.50 per ADS and will be immediately exercisable until the twenty-four month anniversary of the effective date of the Resale Registration Statement.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering. The gross proceeds to Can-Fite from the exercise of the warrants are expected to be approximately $4.0 million, prior to deducting placement agent fees and offering expenses.

Use of Proceeds and Company Profile

The company intends to use the net proceeds for funding research and development and clinical trials. Additional funds will be allocated to other working capital and general corporate purposes. Can-Fite is a clinical-stage biotechnology company developing a pipeline of proprietary small molecule drugs targeting oncological and inflammatory diseases.

The Company’s lead drug candidate, Piclidenoson, recently reported topline results in a Phase 3 trial for psoriasis and commenced a pivotal Phase 3 trial. Can-Fite’s liver drug, Namodenoson, is being evaluated in a Phase III trial for hepatocellular carcinoma (HCC), a Phase 2b trial for the treatment of MASH, and in a Phase 2a study in pancreatic cancer. Namodenoson has been granted Orphan Drug Designation in the U.S. and Europe and Fast Track Designation as a second line treatment for HCC by the U.S. Food and Drug Administration. CF602, the Company’s third drug candidate, has shown efficacy in the treatment of erectile dysfunction.