PainReform Announces Pricing of $4 Million Public Offering

Rhea-AI Summary

PainReform (Nasdaq: PRFX) has announced the pricing of a $4 million public offering, consisting of 5,000,000 ordinary shares and warrants. The offering is priced at $0.80 per share with accompanying warrants to purchase additional shares.

Financial Analyst

PainReform's recent pricing of their public offering at $0.80 per share, which includes warrants with the same exercise price, is noteworthy for a number of reasons. Firstly, the offering's pricing can reveal current market sentiment towards the company. A price of $0.80, when compared to historical data, may suggest investor caution, possibly due to the inherent risks in clinical-stage companies. Secondly, the accompanying warrants could potentially dilute current shareholders but also represent future capital infusion if exercised. It's important for investors to consider the dilution effect and how it might affect share value in the long run. However, the immediate capital raised will be important for the company's drug development pursuits, which if successful, may lead to significant long-term returns. Investors should weigh these aspects against their risk tolerance and investment horizon.

Pharmaceutical Market Analyst

The specialty pharmaceutical landscape is highly competitive, with innovation and swift progression to market being key differentiators. PainReform's focus on reformulating established therapeutics is a strategic approach that could mitigate some development risks and potentially shorten timeframes to reach the market. However, investor confidence in such strategies can be fickle, influenced by both the clinical progression and the financial stability of the company. The pricing of this offering might also reflect the company's urgency for funding, which could be a red flag if operating capital is running low. Investors should scrutinize the company's pipeline, comparing it with competitors and assess how the raised capital might accelerate or enhance their market position. Understanding the specific drugs in development and their market potential is essential to gauge long-term prospects.

TEL AVIV, Israel, April 16, 2024 (GLOBE NEWSWIRE) -- PainReform Ltd. (Nasdaq: PRFX) (“PainReform” or the “Company”), a clinical-stage specialty pharmaceutical company focused on the reformulation of established therapeutics, today announced the pricing of a public offering of an aggregate of 5,000,000 of the Company’s ordinary shares (or ordinary share equivalents) and warrants to purchase up to 5,000,000 ordinary shares at a combined public offering price of $0.80 per share (or per ordinary share equivalent) and accompanying warrant. The warrants will have an exercise price of $0.80 per share, will be exercisable immediately upon issuance and will expire five years from the date of issuance. The closing of the offering is expected to occur on or about April 18, 2024, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds from the offering, before deducting the placement agent's fees and other offering expenses, are expected to be $4 million. The Company intends to use the net proceeds from this offering to advance the Company’s clinical studies, and for general corporate purposes.

The securities described above are being offered pursuant to a registration statement on Form F-1 (File No. 333-277594), which was declared effective by the Securities and Exchange Commission (the “SEC”) on April 15, 2024. The offering is being made only by means of a prospectus forming part of the effective registration statement relating to the offering. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

The Company also has agreed to amend certain existing warrants to purchase up to an aggregate of 935,792 ordinary shares that were previously issued in December 2023 and have an exercise price of $2.85 per ordinary share, effective upon the closing of the offering, such that the amended warrants will have a reduced exercise price of $0.80 per ordinary share and will expire five years from the date of closing of the offering.

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 PainReform

PainReform is a clinical-stage specialty pharmaceutical company focused on the reformulation of established therapeutics. PRF-110, the Company's lead product, is based on the local anesthetic ropivacaine, targeting the postoperative pain relief market. PRF-110 is an oil-based, viscous, clear solution that is deposited directly into the surgical wound bed prior to closure to provide localized and extended postoperative analgesia. The Company's proprietary extended-release drug-delivery system is designed to provide an extended period of post-surgical pain relief without the need for repeated dose administration while reducing the potential need for the use of opiates. For more information, please visit www.painreform.com.

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements about our expectations, beliefs and intentions including with respect to objectives, plans and strategies and expected timing of results. Forward-looking statements can be identified by the use of forward-looking words such as "believe", "expect", "intend", "plan", "may", "should", "could", "might", "seek", "target", "will", "project", "forecast", "continue" or "anticipate" or their negatives or variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical matters. For example, the Company is using forward-looking statements when it discusses the timing and completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of proceeds therefrom. These forward-looking statements are based on assumptions and assessments made in light of management's experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements in this press release are made as of the date of this press release, and we undertake no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of our control. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: our ability to continue as a going concern, our history of significant losses, our need to raise additional capital and our ability to obtain additional capital on acceptable terms, or at all; our dependence on the success of our initial product candidate, PRF-110; the outcomes of preclinical studies, clinical trials and other research regarding PRF-110 and future product candidates; our limited experience managing clinical trials; our ability to retain key personnel and recruit additional employees; our reliance on third parties for the conduct of clinical trials, product manufacturing and development; the impact of competition and new technologies; our ability to comply with regulatory requirements relating to the development and marketing of our product candidates; commercial success and market acceptance of our product candidates; our ability to establish sales and marketing capabilities or enter into agreements with third parties and our reliance on third party distributors and resellers; our ability to establish and maintain strategic partnerships and other corporate collaborations; the implementation of our business model and strategic plans for our business and product candidates; the scope of protection we are able to establish and maintain for intellectual property rights and our ability to operate our business without infringing the intellectual property rights of others; the overall global economic environment; our ability to develop an active trading market for our ordinary shares and whether the market price of our ordinary shares is volatile; and statements as to the impact of the political and security situation in Israel on our business, including due to the current war between Israel and Hamas. More detailed information about the risks and uncertainties affecting us is contained under the heading "Risk Factors" included in the Company's most recent Annual Report on Form 20-F and in other filings that we have made and may make with the Securities and Exchange Commission in the future.

Contact:
Crescendo Communications, LLC
Tel: 212-671-1021
Email: prfx@crescendo-ir.com

Ilan Hadar
Chief Executive Officer
PainReform Ltd.
Tel: +972-54-5331725
Email: ihadar@painreform.com

What is PainReform's ticker symbol?

PainReform's ticker symbol is PRFX.

How much is PainReform's public offering priced at?

PainReform's public offering is priced at $0.80 per share.

How many ordinary shares are included in PainReform's public offering?

PainReform's public offering consists of 5,000,000 ordinary shares.

What is the exercise price of the warrants in PainReform's public offering?

The warrants in PainReform's public offering have an exercise price of $0.80 per share.

When is the closing of PainReform's public offering expected to occur?

The closing of PainReform's public offering is expected to occur on or before the specified date.