Exicure Inc

Exicure, Inc. (NASDAQ: XCUR) is an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. The Company, through GPCR Therapeutics USA Inc. (GPCR USA), is focused on developing and commercializing an intellectual property and patents related to G-Protein Coupled Receptors. GPCR USA is conducting a Phase II clinical trial for a blood cancer treatment involving GPC-100 (Burixafor).

Recent Business and Financial Updates

• Exicure, Inc. Announces Strategic Acquisition and Financial Updates: Exicure, Inc. (Nasdaq: XCUR), a biotechnology company, announced on January 22, 2025, that it entered into a Share Purchase Agreement with GPCR Therapeutics Inc., a Korean corporation, on January 19, 2025, acquiring all issued and outstanding equity securities of GPCR Therapeutics USA Inc., a California-based subsidiary of GPCR. This transaction, which closed concurrently with the agreement’s execution, marks a significant step in Exicure’s expansion into novel therapeutic technologies, particularly those related to GPCR’s intellectual property and patents. The acquisition aligns with Exicure’s strategic focus on advancing innovative treatments, enhancing its portfolio through this integration of advanced research capabilities.
• License and Collaboration Agreement with GPCR Therapeutics: In conjunction with the Share Purchase Agreement, Exicure and GPCR Therapeutics entered into a License and Collaboration Agreement to further develop and commercialize GPCR’s technologies, targeting specific intellectual properties and patents. Under this agreement, Exicure is obligated to make milestone payments to GPCR upon achieving key clinical trial stages, marketing authorizations, and net sales targets, as well as to pay recurring royalty payments of at least 10% of net sales, as stipulated in the agreement. This collaboration underscores Exicure’s commitment to leveraging GPCR’s expertise to drive innovation, potentially expanding its therapeutic offerings, though it introduces financial obligations that will require careful management given the Company’s current financial position.
• Equity Financing from HiTron Systems Inc.: Exicure secured significant equity financing from HiTron Systems Inc. through two agreements executed in November 2024. On November 6, 2024, executed on November 12, 2024, Exicure agreed to sell and issue 433,333 shares of common stock at USD 3.00 per share, raising USD 1.3 million, with the transaction expected to close within 10 days. Subsequently, on November 13, 2024, the Company agreed to sell an additional 2,900,000 shares at the same price, totaling USD 8.7 million, contingent upon stockholder approval and other customary conditions. Upon closing the initial investment, HiTron will gain the right to appoint two nominees to Exicure’s board, with additional nominations possible based on equity interest post the subsequent investment, strengthening Exicure’s financial position while potentially influencing its governance structure.
• Request for Nasdaq Listing Extension: Exicure disclosed that, as of September 30, 2024, it did not meet Nasdaq Capital Market’s continued listing requirement for stockholders’ equity, primarily due to litigation accruals related to a securities lawsuit. The Nasdaq Hearings Panel had previously granted an extension through November 14, 2024, for Exicure to demonstrate compliance, but the Company requested a further extension to December 17, 2024, believing the USD 1.3 million sale to HiTron will restore pro forma compliance. However, there is no assurance that the Panel will grant this extension or that Exicure can maintain compliance, posing a risk of delisting that could impact its market presence and investor confidence if not addressed promptly.
• Third Quarter 2024 Financial Performance: For the quarter ended September 30, 2024, Exicure reported a cash position of USD 0.3 million, down from USD 0.8 million at the end of 2023, indicating insufficient liquidity to sustain operations without additional funding. General and administrative expenses decreased to USD 1.46 million from USD 2.4 million in the same period of 2023, primarily due to reduced operations and lower costs following employee separations, though litigation legal expenses increased by USD 1.1 million due to accruals for a securities lawsuit. The Company recorded a net loss of USD 1.1 million, a significant improvement from a USD 5.3 million loss in Q3 2023, driven by USD 1.5 million in revenue from an asset sale, a USD 2 million write-down reversal from 2023, and reduced payroll costs, yet its financial stability remains precarious, necessitating near-term capital raises.
• Going Concern and Future Outlook: Exicure’s management acknowledges that its existing cash and cash equivalents are inadequate to fund ongoing operations, having already implemented significant cost reductions with limited further options to extend its operating runway. The Company anticipates requiring substantial additional financing in the near term to cover expenses, explore strategic alternatives, and pursue identified opportunities, particularly for Apitox development and GPCR collaborations. While Exicure expects the net proceeds from its equity financing and asset sales to support operations for at least 12 months, there is no guarantee that additional funding will be available on acceptable terms, heightening the risk of operational disruptions or delays in clinical development, which could materially affect its business prospects and ability to deliver on its therapeutic innovations.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 57.13, downward trending and moving towards overbought zone, with expectations of a consolidation or an upward momentum if the important resistance of USD 13-USD 14 is broken on the upside. Additionally, the stock's current positioning is between both 50-Day SMA and 200-Day SMA, which can act as a short to medium term resistance and support levels respectively.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Exicure, Inc. (NASDAQ: XCUR) at the closing price of USD 11.32, as of March 03, 2025.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is March 03, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.