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Sunshine Biopharma, Inc. Announces Closing of $10.0 Million Underwritten Public Offering

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Sunshine Biopharma, Inc. (NASDAQ: SBFM) completed a public offering raising approximately $10.0 million. The offering included 71,428,571 Units, with Common Units and Pre-Funded Units. The Company plans to utilize the proceeds for general corporate purposes and working capital. Aegis Capital Corp. has an option to purchase additional shares. The offering was managed by Aegis Capital Corp. and legal counsel was provided by Sichenzia Ross Ference Carmel LLP and Kaufman & Canoles, P.C.
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The closing of Sunshine Biopharma's underwritten public offering is a significant financial event, as it has successfully raised approximately $10 million in gross proceeds. This capital infusion is critical for the company's operational sustainability and future growth initiatives. The structure of the offering, which includes common units and pre-funded units comprising warrants, indicates a strategic move to attract a diverse range of investors, with the flexibility of immediate warrant exercise providing an incentive for investment. The immediate exercisability of these warrants could potentially lead to dilution of existing shares, but also suggests confidence in the company's prospects, as investors may be willing to convert their warrants into shares, betting on the company's stock appreciation.

The allocation of funds for general corporate purposes and working capital signifies an investment in the company's core operations, which could enhance its capacity to bring new products to market and expand its therapeutic portfolio. However, the broad nature of the term 'general corporate purposes' warrants scrutiny from investors, as it lacks specificity on how the funds will be allocated to drive growth. The 45-day over-allotment option granted to Aegis Capital Corp. demonstrates a safeguard against potential excess demand, which also provides the company with a mechanism to raise additional funds if the market response is favorable.

The pharmaceutical sector is highly competitive, with significant R&D costs and regulatory hurdles. Sunshine Biopharma's successful public offering indicates market confidence in its potential to deliver value through its oncology and antiviral programs. The decision to raise capital through a combination of common and pre-funded units suggests an anticipation of future funding needs, possibly related to clinical trials or product development. From a market perspective, the success of such an offering could reflect an investor appetite for speculative biotechnology plays, where the promise of breakthrough treatments can lead to substantial returns.

Furthermore, the underwriter's partial exercise of the over-allotment option, specifically for Series A and Series B Warrants, could be interpreted as a positive signal, potentially indicating an expectation of stock performance that will justify warrant exercise. It's important to monitor the subsequent stock performance and any strategic announcements from Sunshine Biopharma, as these will provide further insights into the market's reception of the offering and the company's trajectory.

The offering's compliance with SEC regulations, including the effectiveness of the Form S-1 registration statement, is a critical aspect of this capital raise. The legal framework governing public offerings ensures transparency and protection for investors, with the final prospectus providing detailed information about the terms of the offering. The role of legal counsel in such transactions cannot be understated, as it involves thorough due diligence and precise documentation to meet regulatory standards.

Investors should note the significance of the offering's terms, such as the initial exercise price and expiration of warrants, as these details affect the potential return on investment. The legal stipulation that the offering does not constitute an offer to sell or a solicitation in jurisdictions where it would be unlawful, highlights the importance of understanding the geographic limitations and legal implications of investing in such securities.

NEW YORK, NY / ACCESSWIRE / February 15, 2024 / Sunshine Biopharma, Inc. (NASDAQ:SBFM) (the "Company"), a pharmaceutical company offering and researching life-saving medicines in a variety of therapeutic areas including oncology and antivirals, today announced the closing of a firm commitment underwritten public offering with gross proceeds to the Company of approximately $10.0 million, before deducting underwriting discounts and other estimated expenses payable by the Company.

The offering consisted of 71,428,571 Units, consisting of (a) 26,428,571 Common Units, with each Common Unit consisting of one share of our common stock, $0.001 par value per share, one-tenth (1/10) of a Series A warrant to purchase one share of common stock ("Series A Warrant") and two-tenths (2/10) of a Series B warrant to purchase one share of common stock ("Series B Warrant"), and (b) 45,000,000 Pre-Funded Units, with each Pre-Funded Unit consisting of one pre-funded warrant to purchase one share of common stock, one-tenth of a Series A Warrant and two-tenths of a Series B Warrant. The Pre-Funded Warrants are immediately exercisable and may be exercised at any time until exercised in full. The initial exercise price of each Series A Warrant is $2.10 per share of common stock or pursuant to an alternative cashless exercise option. The Series A Warrants are exercisable immediately and expire 30 months after the initial issuance date. The initial exercise price of each Series B Warrant is $2.38 per share of common stock. The Series B Warrants are exercisable immediately and expire 60 months after the initial issuance date.

The Company expects to use the net proceeds from the offering for general corporate purposes and working capital.

In addition, the Company has granted Aegis Capital Corp. ("Aegis") a 45-day option to purchase up to an additional 15% of the total number of shares of common stock and/or Pre-Funded Warrants and/or Series A Warrants and/or Series B Warrants sold in the offering, solely to cover over-allotments, if any. On February 15, 2024, Aegis partially exercised its over-allotment option consisting of 2,491,071 Series A and Series B Warrants.

Aegis Capital Corp. acted as the sole book-running manager for the offering. Sichenzia Ross Ference Carmel LLP acted as counsel to the Company. Kaufman & Canoles, P.C. acted as U.S. counsel to Aegis Capital Corp.

A registration statement on Form S-1 (No. 333-276817) previously filed with the U.S. Securities and Exchange Commission (the "SEC") on February 1, 2024, as amended, was declared effective by the SEC on February 12, 2024. A final prospectus describing the terms of the offering has been filed with the SEC and is available on the SEC's website located at www.sec.gov. Electronic copies of the final prospectus may be obtained by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy 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 Sunshine Biopharma, Inc.

Sunshine Biopharma through its subsidiary Nora Pharma Inc. has 51 generic prescription drugs on the market in Canada and 32 additional drugs scheduled to be launched in Canada in 2024 and 2025. In addition, Sunshine Biopharma is conducting a proprietary drug development program which is comprised of (i) K1.1 mRNA for liver cancer, and (ii) PLpro protease inhibitor for SARS Coronavirus infections. For more information, please visit: www.sunshinebiopharma.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company's product development and business prospects, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

For Additional Information:

Sunshine Biopharma Contact:
Camille Sebaaly, CFO
Direct Line: 514-814-0464
camille.sebaaly@sunshinebiopharma.com

SOURCE: Sunshine Biopharma, Inc.



View the original press release on accesswire.com

FAQ

What was the gross proceeds of the public offering by Sunshine Biopharma, Inc. (SBFM)?

The gross proceeds of the public offering by Sunshine Biopharma, Inc. (SBFM) were approximately $10.0 million.

How many Units were included in the offering by Sunshine Biopharma, Inc. (SBFM)?

The offering by Sunshine Biopharma, Inc. (SBFM) included 71,428,571 Units.

What will Sunshine Biopharma, Inc. (SBFM) use the net proceeds from the offering for?

Sunshine Biopharma, Inc. (SBFM) plans to use the net proceeds from the offering for general corporate purposes and working capital.

Which company acted as the sole book-running manager for the offering by Sunshine Biopharma, Inc. (SBFM)?

Aegis Capital Corp. acted as the sole book-running manager for the offering by Sunshine Biopharma, Inc. (SBFM).

Who provided legal counsel to Sunshine Biopharma, Inc. (SBFM) in the offering?

Sichenzia Ross Ference Carmel LLP acted as counsel to Sunshine Biopharma, Inc. (SBFM), and Kaufman & Canoles, P.C. acted as U.S. counsel to Aegis Capital Corp.

Sunshine Biopharma, Inc.

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