Scorpius Holdings, Inc. Announces Pricing of Public Offering
Rhea-AI Summary
Scorpius Holdings, an integrated CDMO, has announced the pricing of its public offering of 60,000,000 common units or pre-funded units at $0.10 per unit. Each unit includes one share of common stock (or a pre-funded warrant) and a common warrant to purchase one share at $0.12. Gross proceeds are expected to be $6,000,000 before expenses, with an option for underwriters to purchase up to an additional 9,000,000 units to cover over-allotments. The offering is set to close on May 16, 2024. Proceeds will fund working capital, general purposes, and repay a $750,000 note. ThinkEquity is the sole manager for this offering.
Positive
- Offering expected to generate $6,000,000 in gross proceeds.
- Proceeds to fund working capital and general corporate purposes.
- Offering includes an option for underwriters to purchase additional units, potentially increasing proceeds.
- Warrants exercisable immediately, allowing potential rapid capital influx.
Negative
- Offering price of $0.10 per unit could indicate undervaluation.
- Repayment of $750,000 note reduces funds available for other uses.
- Dilution risk for existing shareholders due to large number of new shares.
News Market Reaction – SCPX
On the day this news was published, SCPX declined 57.69%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
DURHAM, N.C., May 14, 2024 (GLOBE NEWSWIRE) -- Scorpius Holdings, Inc. (NYSE American: SCPX), (“Scorpius”, or the “Company”), an integrated contract development and manufacturing organization (CDMO), today announced the pricing of its underwritten public offering of 60,000,000 common units and/or pre-funded units in lieu thereof. Each common (or pre-funded) unit is being offered at a public offering price of
The Company intends to use the net proceeds of the offering to fund working capital, general corporate purposes, and the repayment of a
ThinkEquity is acting as sole book-running manager for the offering.
A registration statement on Form S-1 (File No. 333-279092), as amended, including a preliminary prospectus, relating to the securities being offered was filed with the Securities and Exchange Commission (“SEC”) and became effective on May 13, 2024. This offering is being made only by means of a prospectus. Copies of the preliminary prospectus and final prospectus, when available, may be obtained from ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004. The final prospectus will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Scorpius Holdings, Inc.
Scorpius Holdings Inc. is an integrated large molecule contract development and manufacturing organization (CDMO) focused on rapidly advancing biologic and cell therapy programs to the clinic and beyond. Scorpius offers a broad array of analytical testing, process development, and manufacturing services to pharmaceutical and biotech companies at its state-of-the-art facilities in San Antonio, TX. With an experienced team and new, purpose-built U.S. facilities, Scorpius is dedicated to transparent collaboration and flexible, high-quality biologics biomanufacturing. For more information, please visit www.scorpiusbiologics.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions and include statements regarding the timing and completion of the proposed offering and the intended use of proceeds. Important factors that could cause actual results to differ materially from current expectations include, among others, the ability to complete the proposed offering, and other factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023 and any other filings the Company makes with the SEC. The information in this presentation is provided only as of the date presented, and the Company undertakes no obligation to update any forward-looking statements contained in this press release on account of new information, future events, or otherwise, except as required by law.
For Investor Relations Inquiries:
David Waldman
+1 (919)-289-4017
investorrelations@nighthawkbio.com
