Artelo Biosciences Plunges 28.08% on Public Offering Announcement

On September 4, 2025, Artelo Biosciences experienced a significant drop of 28.08% in pre-market trading, marking a notable decline in its stock performance.

Artelo Biosciences has announced a proposed underwritten public offering of its common stock and/or pre-funded warrants. This move is part of the company's strategy to raise capital for its ongoing research and development efforts, as well as to ensure financial stability. The offering is being conducted under a shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission and declared effective on July 14, 2023.

The funds raised from this offering will be used to support the company's clinical trials and the development of ART27.13, a peripherally acting cannabinoid receptor agonist aimed at treating cancer anorexia-cachexia syndrome (CACS). The Phase 2 Cancer Appetite Recovery Study (CAReS) trial with ART27.13 has shown promising interim results, including significant improvements in weight gain, lean body mass, and activity levels among treated patients compared to placebo.

The interim data from the CAReS trial has been particularly encouraging, with patients on the highest dose of ART27.13 achieving a mean weight gain of +6.38% after 12 weeks, compared to an average loss of -5.42% on placebo. Additionally, ART27.13 demonstrated a +4.23% increase in lean body mass at one month, while placebo patients lost -3.15%. These results have prompted Artelo Biosciences to consider advancing the ART27.13 program by starting patients at the highest dose, which has shown the greatest treatment effect with acceptable safety.

Artelo Biosciences is dedicated to developing proprietary therapeutics that modulate lipid-signaling pathways to address significant unmet needs in various conditions, including anorexia, cancer, anxiety, dermatologic conditions, pain, and inflammation. The company's pipeline includes treatments for a range of conditions, and it is also exploring the use of digital assets as part of its treasury strategy.