Rockwell Medical , Inc. (NASDAQ:RMTI), a pharmaceutical company based in Wixom, Michigan, has filed a prospectus supplement to offer and sell up to $25 million of its common stock. This announcement was made today, following the company's engagement with Cantor Fitzgerald & Co. under a Controlled Equity OfferingSM Sales Agreement dating back to April 8, 2022.
The new prospectus supplement is part of a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on October 8, 2024, which became effective on October 21, 2024. This filing replaces an earlier registration statement set to expire on the same date. The previous registration statement was terminated upon the effectiveness of the new one.
Rockwell Medical (TASE:PMCN)'s common stock is listed on the Nasdaq Capital Market under the ticker symbol RMTI. The company operates in the pharmaceutical preparations industry within the healthcare sector, specifically under the name 03 Life Sciences, after undergoing several name changes in the past.
The legal opinion regarding the legality of the securities being offered was provided by Gibson, Dunn & Crutcher LLP and is included in the exhibits of the company's current report on Form 8-K. This opinion is a standard procedure to confirm the legal status of the newly offered securities.
The offering of common stock allows Rockwell Medical to raise capital, which can be used for various corporate purposes. The company has not publicly disclosed specific plans for the use of the proceeds from this offering.
In other recent news, Rockwell Medical has announced a profitable third quarter of 2024, marking its second consecutive quarter of profitability. The company's revenue saw a 19% increase, reaching $28.3 million, a growth attributed to record sales of concentrate products and a significant distribution agreement with Nipro Medical Corporation. Despite forecasting a reduction in orders from a major customer in 2025, Rockwell Medical is actively pursuing new contracts to offset potential revenue declines.
The company's gross profit for Q3 surged to $6.2 million, a 183% increase from the prior year. Rockwell Medical raised its 2024 net sales guidance to $98-$101 million and forecasts Q4 2024 revenue between $23 million and $25 million. The company is expanding into the at-home dialysis market and is bidding on multiple international contracts.
A projected decline in net sales of $31 million to $38 million for 2025 is expected due to reduced orders from a major customer. However, Rockwell Medical's leadership remains confident in the company's strategic direction and its ability to navigate the anticipated challenges in 2025. These are among the company's recent developments.
InvestingPro Insights
Rockwell Medical's recent filing to offer and sell up to $25 million of its common stock comes at a time of significant volatility for the company. According to InvestingPro data, RMTI has experienced a strong return of 17.92% over the last three months and an impressive 66.47% over the last six months. However, the stock has taken a substantial hit in the short term, with a -31.39% return in the last week.
InvestingPro Tips highlight that while RMTI operates with a moderate level of debt, it has not been profitable over the last twelve months. This context may explain the company's decision to raise capital through a stock offering. The company's revenue growth is noteworthy, with a 24.58% increase in the last twelve months and a 42.88% quarterly growth as of Q2 2024.
For investors considering RMTI, it's worth noting that analysts do not anticipate the company will be profitable this year, according to another InvestingPro Tip. This information, along with 5 additional tips and numerous financial metrics, is available on InvestingPro, providing a more comprehensive view of Rockwell Medical's financial health and market position.
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