Grace Therapeutics Inc. (Nasdaq: GRCE) closed a $10 million private placement on August 6, 2026, issuing 4,761,904 shares of common stock at $2.10 per share to new and existing fundamental investors, per the company's August 4, 2026 8-K press release filed with the SEC.
Net proceeds came in at approximately $9,100 thousand after placement agent fees and other offering expenses, according to the company's August 2026 10-Q filing. Craig-Hallum acted as sole placement agent. The deal was priced at-the-market under Nasdaq rules.
As of August 11, 2026, Grace held $22,231 thousand in cash and cash equivalents, per the same 10-Q. The company said the net proceeds from the private placement, combined with existing cash, are expected to extend its runway to the end of calendar 2028.
Proceeds will fund manufacturing and regulatory work to advance GTx-104, Grace's lead asset — a novel injectable formulation of nimodipine for IV infusion targeting patients with aneurysmal subarachnoid hemorrhage (aSAH).
Grace submitted a 505(b)(2) NDA for GTx-104 in June 2025, which the FDA accepted. In April 2026, the agency issued a Complete Response Letter citing CMC, leachables, and cGMP deficiencies at the company's contract manufacturer — without raising safety or efficacy concerns, per the August 4 press release. A Phase 3 trial had shown a 19% relative reduction in clinically significant hypotension versus oral nimodipine, along with stronger dose intensity and functional outcomes, per the same release.
To address the manufacturing issues flagged in the Complete Response Letter, Grace has initiated a dual-source manufacturing strategy: a technology transfer to a second, U.S.-based contract manufacturer is already underway, per the company's disclosures.
This is not Grace's first institutional raise. In February 2025, the company announced a private placement of up to $30 million led by Nantahala Capital and ADAR1 Partners, LP, with $15 million in upfront gross proceeds and the potential for up to an additional $15 million in warrant exercise proceeds. The August 2026 close brings in a smaller but focused cohort of institutional and accredited investors at a defined price point.
The financing lands against a backdrop of broad small-cap strength. The Russell 2000 touched all-time highs three times in the week ending August 15, 2026, gaining 1.1% on the week and finishing up 23.6% year-to-date, per Trading Strategy Guides. The VIX fell to new 2026 lows below 14.4, per Schwab's market update.
The week of August 18–22 brings Federal Reserve minutes from the July meeting on Wednesday, with markets as of Friday August 15 pricing a 67% probability of no rate change at the September meeting, per TS2 Tech. The Fed's Jackson Hole conference is also scheduled for later in August. Per the company's August 2026 10-Q, the runway extension to end-2028 and the technology transfer to a second U.S.-based contract manufacturer are the two concrete milestones Grace has disclosed as its near-term operational priorities.