ORLANDO – Nutriband Inc. (NASDAQ:NTRB), a developer of pharmaceutical products, has announced the closure of a private placement funding round, securing $8.4 million through the sale of 2,100,000 shares at $4 each. Concurrently, investors received warrants to purchase additional shares, with the funding aimed at advancing the company's lead product, AVERSA™ Fentanyl.
This capital raise is specifically earmarked for the completion of clinical development and the submission of a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA) for AVERSA™ Fentanyl, slated for the first quarter of 2025. AVERSA™ Fentanyl is touted as a potential first-of-its-kind opioid patch with abuse-deterrent properties.
Nutriband's CEO, Gareth Sheridan, commented on the significance of this financial milestone, stating that it should provide the necessary resources to reach the NDA filing phase. The company estimates that, if approved, AVERSA Fentanyl could achieve annual sales between $80 million and $200 million in the U.S. market.
The securities sold in this transaction have not been registered under the Securities Act of 1933 and are subject to specific restrictions on resale. Nutriband has agreed to file a registration statement with the SEC for the resale of the shares and the shares underlying the warrants.
The company, which specializes in transdermal pharmaceuticals, is focusing on the development of its AVERSA™ technology, which can be integrated into any transdermal patch to mitigate the risks of abuse, misuse, and accidental exposure of drugs with abuse potential.
The information reported here is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
Nutriband Inc. (NASDAQ:NTRB) has recently completed a significant private placement funding round, but what do the numbers say about the company's financial health and market performance? According to InvestingPro data, Nutriband currently has a market capitalization of $34.18 million. Despite analysts not expecting profitability this year, the company's liquid assets surpass short-term obligations, suggesting a degree of financial stability in the near term. This is particularly relevant as the company progresses towards the submission of their New Drug Application for AVERSA™ Fentanyl.
InvestingPro data also reveals that the company's P/E ratio stands at -5.95, reflecting market skepticism about its earnings potential in the immediate future. Moreover, Nutriband has been trading at a high Price / Book multiple of 5.98, which could indicate that the stock is priced optimistically relative to its book value.
However, it's not all challenging news. Nutriband has experienced a strong return over the last month, with a 64.9% price total return, and over the last six months, the return has been an even more impressive 74.05%. These figures could suggest growing investor confidence or speculative interest in the company's future prospects.
For those looking to delve deeper into the financials and forecasts for Nutriband, there are additional InvestingPro Tips available. Readers can find more in-depth analysis, including the company's debt levels and its Price / Book multiple, by visiting InvestingPro's dedicated section for Nutriband at https://www.investing.com/pro/NTRB. And remember, for those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off. There are currently 9 more InvestingPro Tips listed, which could provide valuable insights for potential investors and current shareholders alike.
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