FibroBiologics Announces Closing of up to $9.0 Million Private Placement Priced At-the-Market Under Nasdaq Rules
FibroBiologics (NASDAQ:FBLG) closed a private placement raising approximately $3.0 million in gross proceeds through 4,081,633 common shares (or pre-funded warrants) plus accompanying series A and short-term series B warrants priced at $0.735 per share.
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Rhea-AI Summary
FibroBiologics (NASDAQ:FBLG) closed a private placement raising approximately $3.0 million in gross proceeds through 4,081,633 common shares (or pre-funded warrants) plus accompanying series A and short-term series B warrants priced at $0.735 per share.
Total potential gross proceeds from full cash exercise of all warrants are about $6.0 million, with funds intended for working capital and general corporate purposes.
Positive
- Approximately $3.0 million in gross proceeds raised via private placement
- Up to approximately $6.0 million in additional proceeds possible from full warrant exercises
- Financing structured with both series A and short-term series B warrants at $0.735 exercise price
Negative
- Issuance of 4,081,633 new shares of common stock and related warrants creates shareholder dilution
- Further dilution possible if up to 8,163,266 series A and B warrants are fully exercised
- No assurance that series A and B warrants will be exercised or provide additional cash proceeds
Details
News Market Reaction – FBLG
On Jun 30, the first trading day after this news, FBLG closed 19.22% above the previous close.
Data tracked by StockTitan Argus for the Jun 30 session.
Key Figures
- Private placement size
- $9.0 million
- Total potential gross proceeds including warrants
- Upfront proceeds
- $3.0 million
- Gross proceeds from initial closing
- Potential warrant proceeds
- approximately $6.0 million
- Additional gross proceeds if series A and B warrants fully exercised
- Common shares issued
- 4,081,633 shares
- Common stock (or pre-funded warrants) sold in private placement
- Series A warrants
- 4,081,633 warrants
- Series A warrants to purchase common stock
- Purchase price
- $0.735 per share
- Price of common stock in private placement
- Pre-funded warrant price
- $0.73499 per pre-funded warrant
- Purchase price in lieu of common stock
- Warrant term
- five years
- Series A warrants expire five years after approval and effectiveness triggers
Previous Private placement Reports
-
Announced at-the-market private placement raising upfront cash and warrant funding.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
private placement financial
pre-funded warrants financial
resale registration statement regulatory
registration rights agreement regulatory
section 4(a)(2) regulatory
regulation d regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.
The gross proceeds from the offering were approximately
The securities described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and/or 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 securities issued in the private placement and shares of common stock underlying the warrants may not be offered or sold in
This press release shall not constitute an offer to sell or a 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 other 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 other jurisdiction.
About FibroBiologics, Inc.
Based in Houston, FibroBiologics is a clinical-stage biotechnology company developing a pipeline of treatments and seeking potential cures for chronic diseases using fibroblast cells and fibroblast-derived materials. FibroBiologics holds 270+ US and internationally issued patents/patents pending across various clinical pathways, including wound healing, multiple sclerosis, disc degeneration, psoriasis, orthopedics, human longevity, and cancer. FibroBiologics represents the next generation of medical advancement in cell therapy and tissue regeneration. For more information, visit www.FibroBiologics.com.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the anticipated use of proceeds from the offering; the potential exercise of the series warrants prior to their expiration and potential proceeds therefrom, and the receipt of Stockholder Approval. These forward-looking statements are based on FibroBiologics' management's current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside FibroBiologics' management's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those set forth under the caption "Risk Factors" and elsewhere in FibroBiologics' annual, quarterly and current reports (i.e., Form 10-K, Form 10-Q and Form 8-K) as filed or furnished with the SEC and any subsequent public filings. Copies are available on the SEC's website, www.sec.gov. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) risks related to FibroBiologics' liquidity and its ability to maintain capital resources sufficient to conduct its business; (b) the unpredictable relationship between R&D and preclinical results and clinical study results; (c) the ability of FibroBiologics to successfully prosecute its patent applications, (d) FibroBiologics' ability to manufacture its product candidates; (e) FibroBiologics' ability to conduct clinical trials; and (f) market and other conditions. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and FibroBiologics assumes no obligation and, except as required by law, does not intend to update, or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. FibroBiologics gives no assurance that it will achieve its expectations.
General Inquiries:
info@fibrobiologics.com
Investor Contact:
Nic Johnson
Russo Partners
(212) 845-4242
fibrobiologicsIR@russopr.com
Media Contact:
Liz Phillips
Russo Partners
(347) 956-7697
Elizabeth.phillips@russopartnersllc.com
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SOURCE FibroBiologics, Inc.
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