OnKai Inc. announced that it has entered into a non-binding term sheet for the issuance of series seed preferred shares for gross proceeds of $2.5 million on January 5, 2023. The transaction will include participation from returning investor Galmed Pharmaceuticals Ltd. for $1.5 million investment and to hold approximately 17% of the outstanding share capital of the company on an as converted and fully diluted basis. Any securities that may be offered related to the Investment Round have not been registered under the Securities Act of 1933.

The closing is subject, among other things, to the entry into of definitive documents and certain closing conditions.