ABVC BioPharma, Inc. Announces Pricing of $6.875 Million Firm Commitment Offering
Rhea-AI Summary
ABVC BioPharma, a clinical-stage biopharmaceutical company, announced its firm commitment offering of 1,100,000 Units at $6.25 per unit, totaling $6.875 million. Each Unit includes one common share and two types of warrants (Series A and B) with varying exercise prices and conditions. The company has granted underwriters a 45-day option for an additional 165,000 shares. Net proceeds will primarily fund clinical trials and general business expenses, potentially for strategic transactions. The shares began trading on NASDAQ on August 3, 2021, under the ticker symbol 'ABVC.'
Positive
- Successful offering of 1,100,000 Units raises $6.875 million.
- Potential total of $6,862,500 if underwriters exercise their option.
- Funds will support clinical trials and general business purposes.
- Shares commenced trading on NASDAQ, increasing visibility.
Negative
- Clinical trials are still in early stages, with uncertain outcomes.
- Broad discretion in net proceeds use could lead to undefined prioritization.
- Potential risks include inability to manufacture or secure financing.
News Market Reaction – ABVC
In the trading session that priced this news, ABVC declined 39.60%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FREMONT, CA, Aug. 03, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- ABVC BioPharma, Inc. (ABVC), a clinical stage biopharmaceutical company developing therapeutic solutions in oncology/hematology, central nervous system (CNS), and ophthalmology, today announced the pricing of its firm commitment offering of 1,100,000 Units at an offering price of
Each Unit consists of one share of common stock, one Series A warrant to purchase one share of common stock at an exercise price equal to
ABVC BioPharma has also granted WallachBeth Capital, LLC, as Representative of the underwriters, a 45-day option to purchase up to an additional 165,000 shares of common stock at a price of
We estimate that the net proceeds from the sale of 1,100,000 Units at the assumed public offering price of
The Company's common shares will begin trading on the NASDAQ Capital Market on August 3, 2021, under the ticker symbol "ABVC".
WallachBeth Capital, LLC, a leading provider of capital markets and institutional execution services is the sole book manager for the offering. The closing of the offering is expected to take place on or about August 5, subject to the satisfaction or waiver of customary closing conditions.
The securities are offered pursuant to a registration statement on Form S-1, which was declared effective by the Securities and Exchange Commission ("SEC") on August 2, 2021. The offering is being made solely by means of a prospectus. A copy of the final prospectus related to the offering may be obtained, when available, from WallachBeth Capital, LLC, via email at cap-mkts@wallachbeth.com.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About ABVC BioPharma
ABVC BioPharma is a clinical-stage biopharmaceutical company focused on utilizing its licensed technology to conduct proof-of-concept trials through Phase II of the clinical development process at world-famous research institutions (such as Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center). The company has an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development.
Disclaimer
Clinical trials are in early stages, and there is no guarantee that any specific outcome will be achieved. Past performance is not indicative of future results. Investments may be speculative and illiquid, and there is a risk of loss.
Forward-Looking Statements
Clinical trials are in early stages, and there is no guarantee that any specific outcome will be achieved. This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our product candidates on a commercial scale on our own, or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval to proceed to the next level of the clinical trials or to market our product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Contact:
Andy An – Chief Financial Officer
765-610-8826
andyan@ambrivis.com