Aldeyra Therapeutics (NASDAQ:ALDX), Inc., a pharmaceutical company, announced today it has entered into a new Open Market Sale AgreementSM with Jefferies LLC. Under this agreement, Aldeyra has the option to sell up to $75 million of its common stock through Jefferies, acting as a sales agent.
This new agreement, effective as of Thursday, replaces a prior sales agreement from March 2021, under which no shares were sold. The prior agreement had a potential sales cap of $100 million. Aldeyra's recent filing indicates that the prior registration statement expired on April 15, 2024, leading to the establishment of the new sales agreement.
The shares of common stock can be sold at the market prices pursuant to the terms set out in the Sales Agreement. Aldeyra has the discretion to determine the maximum number of shares to be sold and may halt sales if the market prices are not satisfactory.
Jefferies is entitled to a commission of up to 3.0% of the gross sales price per share sold under the agreement. Moreover, Aldeyra has agreed to indemnify Jefferies against certain liabilities and will reimburse up to $75,000 for legal expenses incurred in executing the agreement.
The Sales Agreement was filed with the Securities and Exchange Commission (SEC) and is accessible for review in its entirety in the form of Exhibit 1.1 attached to the SEC filing. Additionally, legal opinions related to the common stock sales are included as Exhibit 5.1 in the same filing.
Aldeyra Therapeutics, based in Lexington, Massachusetts, specializes in the development of therapies for immune-mediated diseases. The company's stock is traded on The Nasdaq Stock Market LLC under the ticker symbol NASDAQ:ALDX.
InvestingPro Insights
As Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) navigates its financing options, investors may find the following data and insights from InvestingPro valuable in assessing the company's current financial health and market performance. Aldeyra's market capitalization stands at approximately $220.72 million, reflecting investor valuation of the company. Despite a challenging profitability outlook, with analysts not expecting the company to turn a profit this year, Aldeyra holds more cash than debt on its balance sheet, providing a cushion for operational needs. Furthermore, its liquid assets exceed short-term obligations, indicating a degree of financial flexibility in the near term.
InvestingPro Tips reveal that Aldeyra has seen a strong return over the last month, with a 21.23% price total return, signaling a positive investor sentiment in the short term. However, the company does not pay a dividend to shareholders, which may influence investment decisions for those seeking income-generating stocks. Prospective investors should note that Aldeyra has not been profitable over the last twelve months and suffers from weak gross profit margins.
For those considering an investment in Aldeyra, additional insights are available on InvestingPro, which includes a total of 7 tips that could further inform your decision-making process.
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