Inspire Veterinary Partners Announces Closing of up to $6.0 Million Registered Direct Offering Priced At-The-Market Under Nasdaq Rules

Rhea-AI Summary

Inspire Veterinary Partners (NASDAQ:IVP), a U.S. pet healthcare services provider, has closed a registered direct offering priced at-the-market, raising $2.0 million in gross proceeds. The offering includes 1,092,896 shares of common stock (or pre-funded warrants), along with Series A and B warrants to purchase additional shares.

The purchase price is set at $1.83 per share with accompanying warrants. The Series A warrants have a 5-year term while Series B warrants expire in 18 months, both exercisable after stockholder approval. An additional $4.0 million could be raised if all warrants are exercised, though there's no guarantee of exercise.

The company plans to use the net proceeds for working capital, general corporate purposes, strategic investments, and potential future acquisitions. D. Boral Capital served as the exclusive placement agent for this offering.

Positive

• Additional $4.0 million potential funding through warrant exercises
• Proceeds to support working capital and strategic growth initiatives
• Successful closing of registered direct offering maintaining NASDAQ listing

Negative

• Dilutive impact from issuance of 1,092,896 new shares plus potential warrant exercises
• No guarantee of additional $4.0 million from warrant exercises
• At-market pricing suggests premium for existing shareholders

Insights

Financial Analyst

Inspire Veterinary Partners' $2 million registered direct offering with potential for an additional $4 million through warrant exercises represents a significant capital injection for this small-cap company. With a market cap of just $2.64 million, this financing effectively doubles the company's available capital base immediately.

The offering's pricing at $1.83 per share—a 7% premium to the current $1.71 market price—is particularly noteworthy. Premium-priced financings are relatively rare for micro-cap companies, which typically must offer discounts to attract investment. This suggests some level of investor confidence in IVP's prospects within the veterinary services sector.

However, shareholders should carefully consider the dilution impact. The issuance of 1,092,896 new shares represents approximately 42% of the current outstanding shares. This substantial dilution is partially offset by the premium pricing but will still significantly impact ownership percentages of existing investors.

The funding structure—combining immediate capital with potential future warrant exercises—provides a balanced approach to the company's financing needs. The immediate $2 million strengthens IVP's working capital position, while the warrants create a potential pathway to an additional $4 million without incurring the costs of a second offering. However, there's no guarantee these warrants will be exercised, as explicitly noted in the release.

For a company in the capital-intensive veterinary services sector focusing on acquisitions, this funding provides essential resources for continued operations and potential growth opportunities. The effectiveness of this capital raise will ultimately depend on management's deployment of these funds toward value-creating investments and acquisitions in the highly fragmented veterinary care market.

VIRGINIA BEACH, VA / ACCESS Newswire / March 26, 2025 / Inspire Veterinary Partners, Inc. (NASDAQ:IVP) ("Inspire" or the "Company"), an owner and provider of pet health care services throughout the U.S., today announced it has closed a securities purchase agreement with an investor to purchase 1,092,896 shares of its common stock (or pre-funded warrants in lieu thereof), Series A warrants to purchase 1,092,896 shares of common stock and Series B warrants to purchase 1,092,896 shares of common stock, pursuant to a registered direct offering for aggregate gross proceeds of approximately $2.0 million (the "Offering").The Series A warrants will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares issuable upon exercise of the warrants (the "Stockholder Approval Date") and will expire five years from the Stockholder Approval Date. The Series B warrants will be exercisable beginning on the Stockholder Approval Date and will expire 18 months from the Stockholder Approval Date. The purchase price for one share of common stock (or pre-funded warrants in lieu thereof) and accompanying two warrants is $1.83. Approximately $2.0 million will be funded in full upon the closing of the Offering, and up to an additional $4.0 million may be funded upon full cash exercise of the warrants. No assurance can be given that any of the warrants will be exercised.

Inspire intends to use the net proceeds from the Offering for working capital, general corporate purposes, strategic investments, and any additional potential future acquisitions.

D. Boral Capital acted as exclusive placement agent for the offering.

The Crone Law Group, PC acted as legal counsel to Inspire Veterinary Partners, Inc. and Sichenzia Ross Ference Carmel LLP acted as legal counsel to D. Boral Capital for the Offering.

The common stock (or pre-funded warrants in lieu thereof), warrants and the shares of common stock underlying the warrants described above were offered by the Company pursuant to a "shelf" registration statement on Form S-3 (File No. 333-282355) that was declared effective by the Securities and Exchange Commission (the "SEC") on October 11, 2024. The Offering of the shares of common stock (or pre-funded warrants in lieu thereof), warrants and the shares of common stock underlying the warrants in the registered direct offering was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the registered direct offering has been filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained on the SEC's website at http://www.sec.gov and may also be obtained by contacting D. Boral Capital at 590 Madison Ave 39th Floor, New York, New York 10022, by phone at (212) 970-5150 or e-mail at info@dboralcapital.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.

About Inspire Veterinary Partners, Inc.

Inspire Veterinary Partners is an owner/operator of veterinary hospitals in the US. As the Company expands, it expects to acquire additional veterinary hospitals, including general practice, mixed animal facilities, and critical and emergency care.

For more information, please visit: www.inspirevet.com.

Connect with Inspire Veterinary Partners, Inc.

Facebook

https://www.facebook.com/InspireVeterinaryPartners/

LinkedIn

https://www.linkedin.com/company/inspire-veterinary-partners/

Forward-Looking Statements

This press release contains forward-looking statements regarding the Company's current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, statements by the Company relating to the intended use of proceeds from the offering, receipt of Stockholder Approval, exercise of the Series A warrants and Series B warrants as well as risks and uncertainties related to the satisfaction of customary closing conditions related to anticipated acquisitions, or factors that result in changes to the Company's anticipated results of operations related to acquisitions. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company's public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

Investor Contact

TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com

General Inquires

Morgan Wood
Mwood@inspirevet.com

SOURCE: Inspire Veterinary Partners, Inc.

View the original press release on ACCESS Newswire

FAQ

How much did Inspire Veterinary Partners (IVP) raise in their latest direct offering?

IVP raised $2.0 million in gross proceeds, with potential for additional $4.0 million if all warrants are exercised.

What is the purchase price per share in IVP's March 2025 offering?

The purchase price is $1.83 per share, which includes one share of common stock and two accompanying warrants.

How will IVP use the proceeds from their 2025 direct offering?

The proceeds will be used for working capital, general corporate purposes, strategic investments, and potential future acquisitions.

What are the terms of IVP's warrant offerings in the March 2025 financing?

Series A warrants expire in 5 years and Series B warrants expire in 18 months from stockholder approval, each allowing purchase of 1,092,896 shares.