NeuroBo Pharmaceuticals ( NASDAQ: NRBO ) on Monday priced a private placement and a registered direct offering to raise up to $70 million. The company expects to offer, under private placement, 4,325,701 shares of its common stock or pre-funded warrants in lieu thereof at $3.93 per share or warrant to raise $20 million.
Concurrently, the company has agreed to issue and sell 763,359 shares at the same purchase price per share as in the private placement. Additionally, the company has agreed to issue and offer unregistered Series A warrants to purchase up to 5,089,060 shares of common stock and unregistered Series B warrants to purchase up to 7,633,591 shares of common stock. The series warrants will have an exercise price of $3.
93 per share. The potential additional gross proceeds to NeuroBo from exercising series warrants will be about $50 million on a cash basis. The net proceeds from the offering would be used for working capital and general corporate purposes, as well as to continue the clinical development of DA-1726 for the treatment of obesity, and would be utilized to fund the Phase 1 Part 3 clinical trial of DA-1726.
No assurance can be given that any of the series warrants will be exercised. H.C.
Wainwright & Co. is acting as the exclusive placement agent for the offerings. Press Release .
Shares -9.9% at $3.66.
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