WallachBeth Capital Announces Closing of Bullfrog AI Registered Direct Offering and Concurrent Private Placement for Aggregate Gross Proceeds of $3.13 Million
WallachBeth Capital announced the closing of BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW) registered direct offering and concurrent private placement. The offering included:
- 1,565,000 shares of common stock (or equivalents)
- Common warrants to purchase up to 1,565,000 shares
- Combined purchase price of $2.00
- Gross proceeds of approximately $3.13 million
The warrants have an exercise price of $2.00 per share, are exercisable after six months, and expire five years from the initial exercise date. WallachBeth Capital, acted as sole placement agent for the offering.
WallachBeth Capital ha annunciato la chiusura di BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW) di un'offerta diretta registrata e di un collocamento privato concomitante. L'offerta includeva:
- 1.565.000 azioni ordinarie (o equivalenti)
- Warrant ordinari per l'acquisto di fino a 1.565.000 azioni
- Prezzo di acquisto combinato di $2,00
- Proventi lordi di circa $3,13 milioni
I warrant hanno un prezzo di esercizio di $2,00 per azione, sono esercitabili dopo sei mesi e scadono cinque anni dalla data di esercizio iniziale. WallachBeth Capital ha agito come unico agente per il collocamento dell'offerta.
WallachBeth Capital anunció el cierre de BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW) de una oferta directa registrada y un colocación privada concurrente. La oferta incluía:
- 1,565,000 acciones de acciones ordinarias (o equivalentes)
- Warrants ordinarios para comprar hasta 1,565,000 acciones
- Precio de compra combinado de $2.00
- Ingresos brutos de aproximadamente $3.13 millones
Los warrants tienen un precio de ejercicio de $2.00 por acción, son ejercitables después de seis meses y expiran cinco años después de la fecha inicial de ejercicio. WallachBeth Capital actuó como único agente de colocación para la oferta.
WallachBeth Capital은 BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW)의 등록된 직접 공모 및 동시 비공식 사모의 마무리를 발표했습니다. 이번 공모에는:
- 1,565,000주 일반 주식(또는 동등한 주식)
- 1,565,000주를 구매할 수 있는 일반 워런트
- 결합 구매 가격 $2.00
- 약 $3.13백만의 총 수익
워런트는 주당 $2.00의 행사가를 가지며, 6개월 후에 행사할 수 있고, 최초 행사일로부터 5년 후에 만료됩니다. WallachBeth Capital은 이번 공모의 단독 배급 대리인으로 활동했습니다.
WallachBeth Capital a annoncé la clôture de BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW) d'une offre directe enregistrée et d'un placement privé concomitant. L'offre comprenait :
- 1.565.000 actions ordinaires (ou équivalentes)
- Des warrants ordinaires pour acheter jusqu'à 1.565.000 actions
- Prix d'achat combiné de 2,00 $
- Recettes brutes d'environ 3,13 millions $
Les warrants ont un prix d'exercice de 2,00 $ par action, sont exerçables après six mois et expirent cinq ans après la date d'exercice initiale. WallachBeth Capital a agi comme agent de placement unique pour l'offre.
WallachBeth Capital hat den Abschluss von BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW) einer registrierten Direktplatzierung und einem gleichzeitigen privaten Platzierungsangebot angekündigt. Das Angebot umfasste:
- 1.565.000 Aktien (oder Äquivalente)
- Ordentliche Warrants zum Kauf von bis zu 1.565.000 Aktien
- Kombinierter Kaufpreis von 2,00 $
- Bruttoeinnahmen von etwa 3,13 Millionen $
Die Warrants haben einen Ausübungspreis von 2,00 $ pro Aktie, sind nach sechs Monaten ausübbar und laufen fünf Jahre nach dem ursprünglichen Ausübungsdatum ab. WallachBeth Capital fungierte als alleiniger Platzierungsagent für das Angebot.
- Raised approximately $3.13 million in gross proceeds
- Successful closing of registered direct offering and private placement
- Potential dilution for existing shareholders due to new share issuance
- Warrants may lead to further dilution if exercised in the future
Insights
BullFrog AI Holdings has successfully closed a registered direct offering and concurrent private placement, raising
The pricing at $2.00 per share and the warrant exercise price at the same level suggest a neutral market sentiment. However, the six-month delay in warrant exercisability and the five-year expiration provide a long-term upside potential for investors while limiting immediate dilution for existing shareholders.
This funding round is important for BullFrog AI's operations, likely supporting their AI-driven drug development platform. The company's focus on using AI in pharmaceuticals aligns with current industry trends, potentially attracting investor interest. However, the need for additional capital also indicates ongoing cash burn, which is typical for early-stage biotech companies but requires careful monitoring of future financial health and potential for further dilution.
The structure of this offering demonstrates careful compliance with securities regulations. The registered direct offering for common stock and pre-funded warrants utilizes an effective shelf registration (Form S-3), providing a streamlined process for raising capital. This approach offers flexibility and efficiency for the company.
Concurrently, the private placement of common warrants under Section 4(a)(2) and Regulation D exemptions allows BullFrog AI to include these instruments without the full registration process. This hybrid approach balances regulatory compliance with capital raising efficiency.
The clear disclosure of the offering's terms, including the filing of a prospectus supplement, adheres to SEC transparency requirements. However, investors should note that the privately placed warrants are not registered, potentially affecting their liquidity. The company's use of a placement agent and legal counsel indicates a structured approach to ensure regulatory compliance throughout the process.
The gross proceeds from the offering are expected to be approximately
WallachBeth Capital, LLC acted as sole placement agent for the registered direct offering and private placement. Sheppard, Mullin, Richter & Hampton LLP acted as counsel to the placement agent.
The shares of common stock, the pre-funded warrants and the shares of common stock underlying the pre-funded warrants (but not the common warrants or the shares of common stock underlying the common warrants) will be issued in a registered direct offering pursuant to an effective shelf registration statement on Form S-3 (File No. 333-281341) previously filed with the
About WallachBeth Capital LLC:
WallachBeth Capital offers a robust range of capital markets and investment banking services to the healthcare community, connecting corporate clients with leading institutions. The firm's experience includes initial public offerings, follow-on issues, PIPE offerings, private transactions and ATM's.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the anticipated use of proceeds from the Company's offering of securities and the expected closing of the offering. Forward-looking statements can be identified by words such as "believes," "expects," "estimates," "intends," "may," "plans," "will" and similar expressions, or the negative of these words. Such forward-looking statements are based on facts and conditions as they exist at the time such statements are made and predictions as to future facts and conditions and include the intended use of proceeds. Readers of this press release are cautioned not to place undue reliance on any forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to risks and uncertainties included under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, subsequent Quarterly Reports on Form 10-Q filed by the Company and other reports filed with the SEC from time to time. The Company does not undertake any obligation to update any forward-looking statement relating to matters discussed in this press release, except as may be required by applicable securities laws.
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SOURCE WallachBeth Capital LLC
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