Acurx Pharmaceuticals, Inc. Announces Closing of $1.1 Million Registered Direct Offering

Rhea-AI Summary

Acurx Pharmaceuticals (NASDAQ: ACXP) has announced the closing of a $1.1 million registered direct offering, consisting of 2,745,000 shares of common stock priced at $0.40 per share. The late-stage biopharmaceutical company, focused on developing new antibiotics for difficult-to-treat bacterial infections, also issued unregistered warrants in a concurrent private placement.

The warrants allow for the purchase of up to 8,235,000 shares at an exercise price of $0.40 per share, exercisable upon stockholder approval and expiring 24 months thereafter. H.C. Wainwright & Co. served as the exclusive placement agent. The company plans to use the net proceeds for working capital and general corporate purposes.

Positive

• Secured immediate funding of $1.1 million through stock offering
• Additional funding potential through warrant exercise of up to 8,235,000 shares

Negative

• Significant dilution with 2,745,000 new shares issued at $0.40 per share
• Further potential dilution from 8,235,000 warrant shares
• Low offering price of $0.40 per share indicates weak market position

Insights

Financial Analyst

Acurx Pharmaceuticals has closed a $1.1 million registered direct offering priced at $0.40 per share, a 11% discount to the current trading price. This financing represents about 12.3% of their $8.9 million market cap, indicating a significant dilution event.

The offering's structure is particularly noteworthy - beyond the 2.74 million shares issued immediately, the concurrent private placement includes warrants for an additional 8.23 million shares (roughly 3x the initial offering size). If exercised, these warrants could bring in approximately $3.3 million but would represent potential future dilution of over 37% of the current market capitalization.

For a late-stage biopharmaceutical company, this relatively modest capital raise suggests financial constraints. The vague designation of proceeds for "working capital and general corporate purposes" without specifying clinical trial funding raises questions about immediate capital needs. Typically, companies in late-stage development secure substantially larger financings to fund pivotal trials through completion.

The warrants' exercise contingency on stockholder approval indicates potential share authorization limitations and adds uncertainty to the company's ability to secure the full $4.4 million in potential gross proceeds. The financing structure - combining a registered direct offering with a private placement of warrants - is often employed when companies face challenges executing traditional follow-on offerings.

Biotech Investment Specialist

This $1.1 million financing for Acurx represents a concerning capital position for a company developing antibiotics - one of the most challenging and capital-intensive therapeutic areas. Antibiotic development typically requires substantial funding through Phase 3 trials and commercialization preparations, as these products face unique market challenges even after approval.

The size and structure of this offering suggest Acurx is raising just enough capital to maintain operations in the near term rather than fully funding its clinical programs. For context, late-stage antibiotic trials generally require tens of millions in capital, making this raise insufficient for comprehensive program advancement.

The substantial warrant component (8.23 million shares) indicates investor hesitancy requiring additional upside potential beyond the 11% discount already provided. This structure resembles a bridge financing rather than a strategic capital raise tied to specific value-creating milestones.

For a company developing a "new class of antibiotics for difficult-to-treat bacterial infections," investors should closely monitor cash burn rate against this new capital. The lack of specificity regarding which programs will benefit from this funding creates ambiguity about near-term clinical progress. Given the $8.9 million market cap, this financing appears to be a stopgap measure rather than a vote of confidence in the company's pipeline, signaling potential for additional dilutive events as clinical programs progress.

STATEN ISLAND, N.Y., March 10, 2025 /PRNewswire/ -- Acurx Pharmaceuticals, Inc. (NASDAQ: ACXP) ("we" or "Acurx" or the "Company"), a late-stage biopharmaceutical company developing a new class of antibiotics for difficult-to-treat bacterial infections, today announced the closing of its previously announced registered direct offering of 2,745,000 shares of its common stock (or common stock equivalents in lieu thereof) at a purchase price of $0.40 per share (or per common stock equivalent in lieu thereof). In addition, in a concurrent private placement, the Company issued unregistered short-term warrants to purchase up to 8,235,000 shares of common stock. The warrants have an exercise price of $0.40 per share, will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares of common stock upon exercise of the warrants (the "Stockholder Approval") and will expire twenty-four months following the date of Stockholder Approval.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

The aggregate gross proceeds to the Company from the offering were approximately $1.1 million, before deducting the placement agent fees and other offering expenses payable by the Company. The Company currently intends to use the net proceeds from the offering for working capital and other general corporate purposes.

The shares of common stock (but not the warrants issued in the private placement or the shares of common stock underlying such warrants) were offered by the Company pursuant to a "shelf" registration statement on Form S-3 (File No. 333-265956) filed with the Securities and Exchange Commission ("SEC") on July 1, 2022, and became effective on July 11, 2022. The registered direct offering of the shares of common stock was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. The prospectus supplement and the accompanying prospectus relating to the shares of common stock offered in the registered direct offering were filed with the SEC and are available at the SEC's website at www.sec.gov. Electronic copies of the prospectus supplement and the accompanying prospectus relating to the registered direct offering may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by telephone at (212) 856-5711 or e-mail at placements@hcwco.com.

The warrants described above were issued in a concurrent private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Acurx Pharmaceuticals, Inc.

Acurx Pharmaceuticals is a late-stage biopharmaceutical company focused on developing a new class of small molecule antibiotics for difficult-to-treat bacterial infections. The Company's approach is to develop antibiotic candidates with a Gram-positive selective spectrum (GPSS®) that blocks the active site of the Gram-positive specific bacterial enzyme DNA polymerase IIIC (pol IIIC), inhibiting DNA replication and leading to Gram-positive bacterial cell death. Its R&D pipeline includes antibiotic product candidates that target Gram-positive bacteria, including Clostridioides difficile, methicillin-resistant Staphylococcus aureus (MRSA), vancomycin resistant Enterococcus (VRE), drug-resistant Streptococcus pneumoniae (DRSP) and B. anthracis (anthrax; a Bioterrorism Category A Threat-Level pathogen). Acurx's lead product candidate, ibezapolstat, for the treatment of C. difficile Infection is Phase 3 ready with plans in progress to begin international clinical trials this year. The Company's preclinical pipeline includes development of an oral product candidate for treatment of ABSSSI (Acute Bacterial Skin and Skin Structure Infections), upon which a development program for treatment of inhaled anthrax is being planned in parallel.

Forward-Looking Statements

Any statements in this press release about our future expectations, plans and prospects, including statements regarding our strategy, future operations, prospects, plans and objectives, and other statements containing the words "believes," "anticipates," "plans," "expects," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the use of proceeds from the offering and the receipt of the Stockholder Approval. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: market and other conditions, whether ibezapolstat will benefit from the QIDP designation; whether ibezapolstat will advance through the clinical trial process on a timely basis; whether the results of the clinical trials of ibezapolstat will warrant the submission of applications for marketing approval, and if so, whether ibezapolstat will receive approval from the FDA or equivalent foreign regulatory agencies where approval is sought; whether, if ibezapolstat obtains approval, it will be successfully distributed and marketed; and other risks and uncertainties described in the Company's annual report filed with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2023, and in the Company's subsequent filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release, and Acurx disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances after the date of such statements, except as may be required by law.

Investor Contact:

Acurx Pharmaceuticals, Inc.
David P. Luci, President & Chief Executive Officer
Tel: 917-533-1469
Email: davidluci@acurxpharma.com

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SOURCE Acurx Pharmaceuticals, Inc.

FAQ

How much did Acurx Pharmaceuticals (ACXP) raise in their March 2025 offering?

ACXP raised $1.1 million through a registered direct offering of common stock priced at $0.40 per share.

What is the exercise price and duration of ACXP's March 2025 warrants?

The warrants have a $0.40 exercise price and expire 24 months after receiving stockholder approval.

How many shares were offered in ACXP's March 2025 registered direct offering?

ACXP offered 2,745,000 shares of common stock at $0.40 per share.

How will ACXP use the proceeds from their March 2025 offering?

The company intends to use the net proceeds for working capital and general corporate purposes.