TEL AVIV – PainReform Ltd. (NASDAQ:PRFX), a clinical-stage pharmaceutical company, has announced agreements for the immediate exercise of outstanding warrants to purchase ordinary shares, which were originally issued in December 2023 and April 2024. The exercise price of these warrants has been reduced from $4.80 to $1.60 per share, with the offering expected to close on September 11, 2024, subject to customary closing conditions.
The exercised warrants will result in the sale of up to 989,300 ordinary shares, and in return, the company will issue new unregistered warrants to purchase up to 1,978,600 ordinary shares. These new warrants, also set at an exercise price of $1.60 per share, will be immediately exercisable and are set to expire five years from the date of issuance.
PainReform anticipates gross proceeds of approximately $1.58 million from the exercise of the warrants, before deducting fees for the placement agent, H.C. Wainwright & Co., and estimated offering expenses. The net proceeds are intended for general corporate purposes.
The newly issued warrants were offered in a private placement under an exemption from the registration requirements of the Securities Act of 1933, and have not been registered under the Act. They may not be offered or sold in the U.S. without registration with the SEC or an applicable exemption from the registration requirements. PainReform has committed to filing a registration statement with the SEC for the resale of the ordinary shares issuable upon the exercise of the new warrants.
PainReform specializes in the reformulation of established therapeutics and is currently developing PRF-110, based on the local anesthetic ropivacaine, for the postoperative pain relief market. Their proprietary extended-release drug-delivery system aims to provide prolonged post-surgical pain relief and reduce the need for opiates.
This news 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. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed.
In other recent news, PainReform Ltd. has reported significant advancements in the development of its postoperative pain relief therapy, PRF-110. The company has successfully completed a Phase III study, demonstrating PRF-110's superior effectiveness in post-surgical pain management. PainReform has also reported positive early safety data from a Phase 3 study of PRF-110, indicating a low incidence of adverse events.
Moreover, the company has developed new patented formulations of PRF-110, designed to enhance recovery after surgery. PainReform has also filed a patent for a new manufacturing process for PRF-110, expected to enhance manufacturing efficiency and reduce production costs. However, the company has received a notice from Nasdaq regarding its failure to meet the minimum bid price requirement.
These recent developments highlight PainReform's continued efforts in postoperative pain relief therapy and its commitment to reducing the need for opioids. The safety data and new formulations of PRF-110, as well as the new manufacturing process, are all part of PainReform's ongoing operations. Despite challenges, the company continues to focus on its mission to offer a safer and more effective therapeutic option for postoperative pain management.
InvestingPro Insights
As PainReform Ltd. (NASDAQ:PRFX) navigates its financial strategy with the exercise of warrants, it's crucial to consider the company's current market position and financial health. Here are some insights drawn from InvestingPro data and tips that provide a snapshot of PainReform's situation:
InvestingPro Data:
- Market Cap (Adjusted): $1.79M USD, reflecting the company's overall valuation in the market as of the last update.
- P/E Ratio (Adjusted): -0.11, indicating that the company is not currently profitable based on earnings from the last twelve months as of Q2 2024.
- Price, Previous Close: $1.59 USD, which is the last recorded closing price of PainReform's stock.
InvestingPro Tips:
1. PainReform holds more cash than debt on its balance sheet, which could provide some financial flexibility in its operations and investment strategies.
2. The company is quickly burning through cash, a point of concern for investors as it could impact the company's ability to sustain operations without additional financing.
It's worth noting that PainReform's stock has experienced significant volatility, with a notable return of 26.19% over the last week, yet it has fared poorly over the last month, three months, and year. This volatility could be a reflection of investor sentiment and market reactions to the company's financial moves and prospects.
For investors interested in a deeper dive into PainReform's financials and strategic outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/PRFX. These insights can help build a more comprehensive understanding of the company's potential risks and opportunities.
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