NEW YORK - Biodexa Pharmaceuticals PLC (NASDAQ:BDRX), a clinical-stage biopharmaceutical company, announced today it has priced a $5.0 million registered direct offering and concurrent private placement. The company, which focuses on developing treatments for diseases with unmet medical needs, is offering 5,050,808 American Depositary Shares at $0.94 each, and 278,975 pre-funded warrants exercisable for Depositary Shares at $0.9399 per pre-funded warrant.
The proceeds are aimed to fund Biodexa's development programs, including a Phase 3 clinical trial for eRapa in Familial Adenomatous Polyposis (FAP), and to match a $17 million grant from the Cancer Prevention Research Institute of Texas (CPRIT). The funds will also support working capital and general corporate purposes.
In a simultaneous private placement, the company will issue unregistered Series J and Series K warrants for up to 5,329,783 Depositary Shares each. The exercise price for the pre-funded warrants is set at $0.0001 per Depositary Share, while the Series J and Series K warrants have an exercise price of $1.00 per Depositary Share. The offering is expected to close around July 22, 2024, pending customary closing conditions.
Additionally, Biodexa has agreed to amend the exercise price of existing Series E, G, and H warrants held by investors participating in the offering to $1.00 per share upon the offering's closing.
Ladenburg Thalmann & Co. Inc. served as the sole placement agent for the offering, which is being made pursuant to a shelf registration statement on Form F-3 declared effective by the SEC on October 26, 2022.
This announcement is based on a press release statement.
InvestingPro Insights
As Biodexa Pharmaceuticals PLC (NASDAQ:BDRX) ventures into a significant phase of development with its recent $5 million financing, it's crucial for investors to understand the company's financial health and market performance. According to InvestingPro data, BDRX has a market capitalization of 9.06 million USD, reflecting the size of the company in the market. However, the company's revenue has seen a substantial decline over the last twelve months as of Q4 2023, with a decrease of 45.49%, indicating challenges in generating sales growth.
InvestingPro Tips suggest that while BDRX holds more cash than debt on its balance sheet, which is a positive sign for its financial stability, the company is rapidly depleting its cash reserves. This cash burn could be a concern for investors considering the capital needed for ongoing clinical trials and development programs. Additionally, analysts project a decline in sales for the current year and do not expect the company to be profitable this year, which may influence investor sentiment.
Despite these challenges, BDRX's stock has experienced a strong return over the last three months, with a 25.07% price total return, indicating some positive investor response to recent developments or market conditions.
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