Elutia Announces $15.0 Million Registered Direct Offering

Rhea-AI Summary

Elutia (NASDAQ: ELUT) has announced a registered direct offering to raise $15.0 million through the sale of 5,520,000 shares of Class A common stock at $2.50 per share and 480,000 prefunded warrants at $2.499 per warrant. The prefunded warrants are immediately exercisable at $0.001 each.

The offering is expected to close around February 4, 2025, with Lake Street Capital Markets acting as the exclusive placement agent. The company plans to use the proceeds for working capital and general corporate purposes. The securities are being offered through an effective shelf registration statement previously filed with the SEC.

Positive

• Secured $15.0 million in additional funding
• Offering conducted through registered direct offering, typically faster than traditional public offering
• Immediate access to working capital for operations

Negative

• Significant shareholder dilution through issuance of 5.52 million new shares
• Additional potential dilution from 480,000 prefunded warrants
• Offering price of $2.50 may represent a discount to market price

News Market Reaction

-14.29%

1 alert

-14.29% News Effect

On the day this news was published, ELUT declined 14.29%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SILVER SPRING, Md., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Elutia Inc. (Nasdaq: ELUT) (“Elutia” or the “Company”) today announced it has entered into a definitive agreement with investors for the purchase and sale of 5,520,000 shares of the Company’s Class A common stock at a purchase price of $2.50 per share and 480,000 prefunded warrants to purchase up to 480,000 shares of the Company’s Class A common stock at a purchase price of $2.499 per prefunded warrant in a registered direct offering. The prefunded warrants are immediately exercisable at an exercise price of $0.001 per each prefunded warrant. The gross proceeds to Elutia from the offering are expected to be approximately $15.0 million, before deducting placement agent fees and other offering expenses payable by Elutia. The offering is expected to close on or about February 4, 2025, subject to customary closing conditions.

Lake Street Capital Markets is acting as the exclusive placement agent for the offering.

Elutia intends to use the proceeds from the proposed offering for working capital and other general corporate purposes.

The securities are being offered and sold by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-267197) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on September 8, 2022. The offering of such securities is being made only by means of a prospectus supplement that forms a part of the registration statement. Copies of the prospectus supplement and accompanying base prospectus will be filed with the SEC and will be available free of charge on the SEC's website at http://sec.gov. Electronic copies of the prospectus supplement and accompanying base prospectus may also be obtained, when available, from Lake Street Capital Markets, LLC at 920 Second Avenue South, Unit 700, Minneapolis, MN 55402, or e-mail at prospectus@lakestreetcm.com.

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 registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the completion of the Company’s offering and the anticipated use of proceeds therefrom. These statements are based on the Company’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements here due to changes in economic, business, competitive or regulatory factors, and other risks and uncertainties, including those set forth in the Company’s filings with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. The Company does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.

Contact:
Elutia, Inc.
IR@elutia.com

FAQ

How much money is Elutia (ELUT) raising in its February 2025 offering?

Elutia is raising approximately $15.0 million through a registered direct offering of common stock and prefunded warrants.

What is the price per share for Elutia's (ELUT) February 2025 stock offering?

The offering price is $2.50 per share for Class A common stock and $2.499 for prefunded warrants.

How many shares is Elutia (ELUT) offering in its February 2025 financing?

Elutia is offering 5,520,000 shares of Class A common stock and 480,000 prefunded warrants.

What will Elutia (ELUT) use the proceeds from its February 2025 offering for?

Elutia intends to use the proceeds for working capital and other general corporate purposes.

When is Elutia's (ELUT) February 2025 registered direct offering expected to close?

The offering is expected to close on or about February 4, 2025, subject to customary closing conditions.