Aptorum Group Limited Announces Pricing of $3.0 Million Registered Direct Offering

Rhea-AI Summary

Aptorum Group (NASDAQ: APM) has announced a $3.0 million registered direct offering of 1,535,000 Class A Ordinary Shares at $2.00 per share. The clinical stage biopharmaceutical company, focused on oncology, autoimmune and infectious diseases, expects to close the offering around January 3, 2025, subject to customary closing conditions.

Maxim Group serves as the sole placement agent. The offering is made pursuant to an effective shelf registration statement on Form F-3. The company will file a prospectus supplement with the SEC, and the gross proceeds are estimated at $3.0 million before deducting placement agent fees and other offering expenses.

Positive

• Secured $3.0 million in additional funding through registered direct offering

Negative

• Potential dilution for existing shareholders with 1,535,000 new shares being issued
• Share price of $2.00 in the offering indicates downward pressure on stock value

Insights

Investment Banker

This $3.0 million registered direct offering at $2.00 per share represents a significant dilution event for Aptorum Group, particularly given their micro-cap status with a market cap of only $15.7 million. The pricing implies approximately 10% dilution to existing shareholders, while the discount to market price suggests weak demand and challenging capital raising conditions for the company.

The involvement of Maxim Group as placement agent and the direct placement to institutional investors indicates a structured deal, though the relatively small size limits institutional participation. For a clinical-stage biotech, this raise appears defensive rather than opportunistic, potentially signaling cash burn concerns. The shelf registration utilization provides faster execution but also suggests potential future capital needs.

Critical for investors to note: the offering price, size relative to market cap and execution approach all point to a company facing financing pressures, which is common among early-stage biotechs but requires careful monitoring of cash runway and development milestones.

Biotech Analyst

The timing and structure of this capital raise raises concerns about Aptorum's clinical development runway. As a company focused on oncology, autoimmune and infectious diseases, maintaining sufficient capital for clinical trials is crucial. The relatively modest $3.0 million raise suggests this may be a bridge financing rather than a comprehensive solution to fund major clinical milestones.

The institutional placement, while positive for credibility, comes at a notable cost to existing shareholders. For clinical-stage biotechs, the ability to fund research and development without excessive dilution is a key success factor. This financing event indicates potential challenges in advancing their pipeline efficiently, particularly if multiple programs are active simultaneously.

NEW YORK, Jan. 02, 2025 (GLOBE NEWSWIRE) -- Aptorum Group Limited (NASDAQ: APM) ("Aptorum Group" or the "Company"), a clinical stage biopharmaceutical company dedicated to meeting unmet medical needs in oncology, autoimmune and infectious diseases, today announced that it has entered into a securities purchase agreement with several institutional investors to purchase 1,535,000 Class A Ordinary Shares (the “Ordinary Shares”) in a registered direct offering. The ordinary shares are being sold at an offering price of $2.00 per share.

The gross proceeds to the Company from the registered direct offering are estimated to be approximately $3.0 million before deducting the placement agent’s fees and other estimated offering expenses payable by the Company. The offering is expected to close on or about January 3, 2025, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as the sole placement agent in connection with the offering.

The Ordinary Shares are being offered pursuant to a shelf registration statement on Form F-3 (File No. 333-268873), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on January 19, 2023. The offering will be made only by means of a prospectus supplement that forms a part of such registration statement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A prospectus supplement relating to the ordinary shares will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3500.

About Aptorum Group Limited

Aptorum Group Limited (Nasdaq: APM) is a clinical stage biopharmaceutical company dedicated to the discovery, development and commercialization of therapeutic assets to treat diseases with unmet medical needs, particularly in oncology (including orphan oncology indications) and infectious diseases. The pipeline of Aptorum is also enriched through the co-development of Paths^Dx Test, a novel molecular-based rapid pathogen identification and detection diagnostics technology, with Accelerate Technologies Pte Ltd, commercialization arm of the Singapore’s Agency for Science, Technology and Research.

Forward-Looking Statements:

This press release does not constitute an offer to sell or a solicitation of offers to buy any securities of Aptorum Group.

This press release includes statements concerning Aptorum Group Limited and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these terms or other similar expressions. Aptorum Group has based these forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its business, financial condition and results of operations.

These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks related to its announced management and organizational changes, the continued service and availability of key personnel, its ability to expand its product assortments by offering additional products for additional consumer segments, development results, the company’s anticipated growth strategies, anticipated trends and challenges in its business, and its expectations regarding, and the stability of, its supply chain, and the risks more fully described in Aptorum Group’s Form 20-F and other filings that Aptorum Group may make with the SEC in the future. As a result, the projections included in such forward-looking statements are subject to change and actual results may differ materially from those described herein.

Aptorum Group assumes no obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.

This press release is provided “as is” without any representation or warranty of any kind.

Contact:

Aptorum Group Limited
Investor Relations Department
investor.relations@aptorumgroup.com
+44 20 80929299

FAQ

How much money is Aptorum Group (APM) raising in its January 2025 offering?

Aptorum Group is raising approximately $3.0 million through a registered direct offering of Class A Ordinary Shares.

What is the price per share for APM's January 2025 registered direct offering?

The offering price is $2.00 per Class A Ordinary Share.

How many new shares is Aptorum Group (APM) issuing in the January 2025 offering?

Aptorum Group is issuing 1,535,000 new Class A Ordinary Shares in the offering.

When is the expected closing date for APM's January 2025 registered direct offering?

The offering is expected to close on or about January 3, 2025, subject to customary closing conditions.

Who is the placement agent for Aptorum Group's January 2025 registered direct offering?

Maxim Group is acting as the sole placement agent for the offering.