BullFrog AI Announces Closing of $5.7 Million Public Offering

Rhea-AI Summary

BullFrog AI Holdings, Inc. (NASDAQ:BFRG) has closed an underwritten public offering, raising approximately $5,700,000 in gross proceeds. The company intends to use the net proceeds for working capital and general corporate purposes. WallachBeth Capital, LLC acted as the sole book-running manager for the offering. The offering was made in accordance with a registration statement on Form S-1 (File No. 333-276740) filed with the SEC and became effective on January 31, 2024.

Financial Analyst

The completion of BullFrog AI Holdings' underwritten public offering represents a significant capital infusion, totaling approximately $5.7 million. This capital raise is crucial for the company, as it provides necessary liquidity to support ongoing operations and strategic initiatives. The offering price of $3.782 per share, inclusive of Pre-Funded Warrant exercise price, indicates investor willingness to engage at this valuation. The additional option for underwriters to purchase extra shares to cover over-allotments could further bolster the company's capital position if exercised.

Investors should note the potential dilutive effect of the new shares and warrants on existing shareholders' equity. However, the immediate increase in working capital could enhance the company's ability to expedite drug development programs, potentially leading to value creation that offsets dilution concerns. The role of WallachBeth Capital, LLC as the sole book-running manager indicates a centralized and potentially efficient execution of the offering.

Market Research Analyst

BullFrog AI Holdings operates within the biotechnology sector, which is highly competitive and capital-intensive. The successful closing of their public offering may signal market confidence in their AI and machine learning-driven approach to drug development. By leveraging technology to streamline the pharmaceutical development process, BullFrog AI could potentially reduce time-to-market for new therapies, aligning with industry trends towards increased efficiency and precision medicine.

The decision to use net proceeds for working capital and general corporate purposes is typical for growth-stage biotech companies. It reflects an ongoing need to invest in research and development, as well as to manage operational costs. The company's future performance and ability to bring viable products to market will be critical in evaluating the long-term impact of this capital raise on its stock value.

Biotechnology Legal Expert

The disclosure of the registration statement's effectiveness filed with the SEC underscores the regulatory compliance aspect of public offerings. The legal framework surrounding such transactions is designed to protect investors and maintain market integrity. BullFrog AI's adherence to these regulations, including the provision of a prospectus, is essential for ensuring transparency and fostering trust among potential investors.

It is important to recognize that the company's press release explicitly states that the offering is not an offer to sell or solicit in any jurisdiction where it would be unlawful. This caution is indicative of the rigorous legal environment governing securities offerings and the importance of complying with state and federal securities laws.

GAITHERSBURG, Md., Feb. 05, 2024 (GLOBE NEWSWIRE) -- BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW) ("BullFrog AI" or the "Company"), a technology-enabled drug development company using artificial intelligence (AI) and machine learning to enable the successful development of pharmaceuticals and biologics, announced today the closing of an underwritten public offering of an aggregate of 1,507,139 shares of common stock (or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof) and accompanying warrants to purchase 1,507,139 shares of common stock at a public offering price of $3.782 per share (inclusive of the Pre-Funded Warrant exercise price) for gross proceeds of approximately $5,700,000, prior to deducting underwriting discounts and offering expenses. In addition, the Company has granted the underwriters a 45-day option to purchase an additional 226,071 shares of common stock (and/or Pre-Funded Warrants in lieu thereof) and/or warrants to purchase 226,071 shares of common stock to cover over-allotments at the public offering price, less the underwriting discount.

The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes. The offering has closed as all customary closing conditions have been satisfied.

WallachBeth Capital, LLC acted as sole book-running manager for the offering.

A registration statement on Form S-1 (File No. 333-276740) relating to the securities was filed with the Securities and Exchange Commission (“SEC”) and became effective on January 31, 2024. This offering was made only by means of a prospectus. Copies of the final prospectus related to the offering may be obtained, when available, from WallachBeth Capital, LLC, via email: cap-mkts@wallachbeth.com, or by calling +1 (646) 237-8585, or by standard mail at Wallachbeth Capital, LLC, Attn: Capital Markets, 185 Hudson St, Jersey City, NJ 07311, USA. In addition, a copy of the final prospectus, when available, relating to the offering may be obtained via the SEC's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 registration or qualification under the securities laws of any such state or jurisdiction.

About BullFrog AI

BullFrog AI is a technology-enabled drug development company using Artificial Intelligence and machine learning to enable the successful development of pharmaceuticals and biologics. Through its collaborations with leading research institutions, BullFrog AI is at the forefront of AI-driven drug development using its proprietary bfLEAP™ artificial intelligence platform to create and analyze networks of biological, clinical, and real-world data spanning from early discovery to late-stage clinical trials. BullFrog AI is deploying bfLEAP™ for use at several critical stages of development with the intention of streamlining data analytics in therapeutics development, decreasing the overall development costs by decreasing failure rates for new therapeutics.

For more information visit BullFrog AI at:

Website: www.bullfrogai.com 
LinkedIn: https://www.linkedin.com/company/bullfrogai/

Safe Harbor Statement

This press release contains forward-looking statements. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

Contact:

Dave Gentry
RedChip Companies, Inc.
BFRG@redchip.com
800-733-2447

SOURCE: BullFrog AI Holdings, Inc.

FAQ

What is the recent public offering by BullFrog AI Holdings, Inc. (BFRG)?

BullFrog AI Holdings, Inc. (BFRG) has closed an underwritten public offering, raising approximately $5,700,000 in gross proceeds.

How does BullFrog AI Holdings, Inc. (BFRG) plan to use the net proceeds from the offering?

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

Who acted as the sole book-running manager for the offering by BullFrog AI Holdings, Inc. (BFRG)?

WallachBeth Capital, LLC acted as the sole book-running manager for the offering.

What is the registration statement filed with the SEC related to the recent offering by BullFrog AI Holdings, Inc. (BFRG)?

The offering was made in accordance with a registration statement on Form S-1 (File No. 333-276740) filed with the SEC and became effective on January 31, 2024.