SAN DIEGO - Biora Therapeutics, Inc. (NASDAQ:BIOR), a biotechnology firm focused on innovative therapeutic delivery systems, has announced a new registered direct offering and concurrent private placement. The transactions involve the sale of 5,454,548 shares of common stock at $1.10 each, and the issuance of an equal number of unregistered warrants with an exercise price of $1.10 per share.
The offering is expected to close by Wednesday, subject to customary closing conditions. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering. Biora anticipates gross proceeds of approximately $6 million before fees and expenses are deducted.
The company plans to use the net proceeds to support operations, complete its ongoing BT-600 clinical trial, further develop its oral biotherapeutics platforms, and for working capital and general corporate purposes.
The common stock is being offered under a shelf registration statement that became effective on August 6, 2021. The warrants, on the other hand, are part of a private placement and, along with the shares they represent, are not registered under the Securities Act, hence they are not publicly tradable unless registered or an exemption applies.
In addition, Biora has agreed to amend previously issued warrants to reduce the exercise price to $1.10 per share, which becomes effective with stockholder approval.
Biora Therapeutics is known for creating smart pills aimed at targeted drug delivery for gastrointestinal conditions and systemic, needle-free delivery of biotherapeutics. The company is working on two platforms: NaviCap™ for oral delivery targeting the GI tract and BioJet™ for oral delivery of large molecules without injections.
The information in this article is based on a press release.
InvestingPro Insights
Biora Therapeutics, Inc. (NASDAQ:BIOR), while actively seeking funds to propel its clinical trials and development platforms, shows a challenging financial landscape as per the latest InvestingPro data and insights. As of the last twelve months ending Q4 2023, Biora's market capitalization stands at a modest $29.93 million, reflecting the scale of the company within the biotechnology sector.
InvestingPro Tips reveal that Biora operates with a significant debt burden and analysts do not anticipate the company will be profitable this year. This aligns with the company's recent measures to secure additional capital through direct offerings and private placements. The urgency for funding is further underscored by Biora's cash burn rate, which has been flagged as a concern.
Furthermore, the company's stock has experienced a substantial decline, with a 1-week price total return of -9.84% and a 6-month price total return of -49.31%, indicating that investor confidence may be wavering. This performance is critical to note for potential and current investors, as it may influence both short-term and long-term investment decisions.
The detailed financial analysis available on InvestingPro, which includes additional tips for Biora Therapeutics, can provide deeper insights into the company's financial health and market position. For investors looking to make informed decisions, a visit to https://www.investing.com/pro/BIOR could be beneficial. Moreover, using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 14 InvestingPro Tips that could further guide investment strategies.
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