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(RTTNews) - XORTX Therapeutics Inc. (XRTX), a late-stage clinical pharmaceutical firm focused on therapies for progressive kidney disease and gout, has launched a non-brokered private placement to raise up to USD 3 million.

The financing involves issuing up to 3,409,090 common share units at USD 0.88 per unit.

Each unit includes one common share and one purchase warrant. The warrant allows the holder to buy an additional share at USD 1.20 within 60 months of closing. However, if XORTX's Nasdaq share price exceeds USD 2.00 for 10 consecutive trading days, the warrants will expire 30 business days after the company issues notice.

XORTX may pay finder's fees on part of the offering in compliance with securities regulations and TSX Venture Exchange policies. All issued securities will be under a four-month and one-day holding period under Canadian law. In the U.S., units will be treated as "restricted securities" under the Securities Act until registered. XORTX aims to file a registration statement on Form F-1 within 30 days of closing and have it declared effective as soon as possible.

The private placement is pending TSX Venture Exchange approval. Net proceeds will support the company's gout treatment programs and be used for general corporate purposes.

Monday, XRTX closed at $0.92, down 11.54%, and is currently trading after hours at $0.9523, up 3.51%, on the Nasdaq Capital Market.

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