GRI Bio launches $6.7M equity offering with new warrants
GRI Bio, Inc. commenced a best efforts public offering of 2,603,331 shares of common stock, 8,063,336 pre-funded warrants and 10,666,667 Series F warrants, with each share or pre-funded warrant sold together with one Series F warrant.
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Rhea-AI Filing Summary
GRI Bio, Inc. commenced a best efforts public offering of 2,603,331 shares of common stock, 8,063,336 pre-funded warrants and 10,666,667 Series F warrants, with each share or pre-funded warrant sold together with one Series F warrant. The combined price is $0.75 per share and Series F warrant, and $0.7499 per pre-funded warrant and Series F warrant. The company expects approximately $6.7 million in net proceeds.
GRI Bio plans to use the cash for working capital, product candidate development and general corporate purposes, and believes this funding, together with existing cash and cash equivalents, will support planned operations into the fourth quarter of 2026. The pre-funded warrants are exercisable at $0.0001 per share until fully exercised, while the Series F warrants are exercisable at $0.75 per share and expire on December 12, 2030, subject to 4.99% or 9.99% beneficial ownership limits and customary offering and financing restrictions.
Insights
Equity raise adds about $6.7M of cash and extends GRI Bio’s runway, but increases share count and relies on future warrant exercises.
GRI Bio is raising equity through a best efforts public offering of common shares, pre-funded warrants and 10,666,667 Series F warrants, priced at $0.75 per share-and-warrant unit and $0.7499 per pre-funded-warrant-and-warrant unit. The company expects net proceeds of about $6.7 million, which it indicates, combined with existing cash and cash equivalents, should fund planned operations into Q4 2026.
The structure includes 8,063,336 pre-funded warrants with a de minimis $0.0001 exercise price and Series F warrants exercisable at $0.75 per share, both immediately exercisable, with the Series F warrants expiring on December 12, 2030. Beneficial ownership limits of 4.99% or 9.99% cap how much any holder can own after exercise, which can spread potential ownership across investors and moderate single-holder concentration.
GRI Bio agreed not to issue most new equity or file related registration statements for 60 days after closing and to avoid variable rate transactions for one year, which may constrain alternative near-term financing options while providing some predictability around supply. Overall, the transaction trades additional equity and warrant overhang for incremental cash and a longer stated cash runway; the eventual impact depends on how many warrants are exercised and how efficiently the new capital is deployed.
8-K Event Classification
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What securities is GRI Bio (GRI) offering in its December 2025 transaction?
GRI Bio is offering 2,603,331 shares of common stock, 8,063,336 pre-funded warrants to buy common stock and 10,666,667 Series F warrants, with each share or pre-funded warrant sold together with one Series F warrant.
How much does GRI Bio expect to raise from this equity offering?
After placement agent fees and expenses and other offering costs, GRI Bio expects approximately $6.7 million in net proceeds from this offering, excluding any cash that could come from later exercises of the Series F warrants.
What will GRI Bio (GRI) use the net proceeds of the offering for?
GRI Bio plans to use the net proceeds for working capital, product candidate development activities and general corporate purposes, including costs and expenses associated with being a public company.
What are the key terms of GRI Bio’s new Series F and pre-funded warrants?
The pre-funded warrants have an exercise price of $0.0001 per share, are exercisable immediately and remain outstanding until fully exercised. The Series F warrants have an exercise price of $0.75 per share, are exercisable immediately and expire on December 12, 2030.
Are there ownership limits on exercising GRI Bio’s new warrants?
Yes. A holder cannot exercise Series F or pre-funded warrants if, after exercise, the holder and its affiliates would beneficially own more than 4.99% or 9.99% of GRI Bio’s outstanding common stock, as specified in the warrant terms.
What restrictions did GRI Bio agree to on future equity issuances after this offering?
Under the securities purchase agreement, GRI Bio agreed for 60 days after closing not to issue or agree to issue most new common stock or similar securities, or file related registration statements, subject to exceptions. It also agreed for one year not to enter into variable rate equity transactions, again subject to specified exceptions.
How is the placement agent being compensated in GRI Bio’s offering?
GRI Bio agreed to pay the placement agent a 7.0% cash fee and a 1.0% management fee on aggregate gross proceeds, plus specified expense reimbursements. The company will also issue 746,667 placement agent warrants with an exercise price of $0.9375 per share, expiring on December 12, 2030.
AI-generated analysis. How Rhea-AI works. Not financial advice.