IRVINE, Calif. - AEON Biopharma, Inc. (NYSE: AEON), a clinical-stage biopharmaceutical company with a current market capitalization of $22.74 million, announced today the pricing of its public offering aimed at generating approximately $20 million in gross proceeds. The offering is structured to include 40 million Common Units or Pre-Funded Units, each comprising a share of Common Stock or a Pre-Funded Warrant, and two series of Registered Common Warrants with exercise prices of $0.625. According to InvestingPro data, the company’s financial health score is currently rated as weak, with short-term obligations exceeding liquid assets.
The public offering price is set at $0.50 per Common Unit and $0.4999 for each Pre-Funded Unit. The Pre-Funded Warrants are immediately exercisable and will remain so until fully exercised. The Series A Warrants will become exercisable post-stockholder approval and will expire five years thereafter, while the Series B Warrants will expire in thirty months following a similar approval process.
AEON Biopharma has also provided Aegis Capital Corp., the sole book-running manager for the offering, a 45-day option to purchase additional shares and warrants to cover any over-allotments.
The company’s President and CEO, Marc Forth, expressed confidence that the capital raised will support operations through 2025, funding necessary comparative analytical studies for ABP-450, their biosimilar to BOTOX® for therapeutic uses. AEON is preparing for a Biosimilar Biological Product Development Type 2 meeting in 2025 to discuss study outcomes and future steps. With a current ratio of 0.22, this funding comes at a crucial time for the company. InvestingPro subscribers can access additional financial health metrics and 7 more exclusive ProTips about AEON’s outlook.
The transaction is expected to close on Tuesday, subject to customary closing conditions. The net proceeds, combined with existing cash, are earmarked for general corporate purposes and working capital.
This offering is part of a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on August 21, 2024. The final prospectus supplement and accompanying prospectus will be filed with the SEC, detailing the offering terms.
AEON Biopharma specializes in developing ABP-450 for medical conditions, primarily in the neurosciences market. The company has exclusive rights to ABP-450 for therapeutic indications in various global markets and aims to leverage its experienced management team’s expertise in biopharmaceuticals and botulinum toxin products. Despite the stock’s 92% decline over the past year, analysts maintain a $5 price target, suggesting significant potential upside from current levels. Investors seeking deeper insights into AEON’s valuation and growth prospects can explore comprehensive analysis tools on InvestingPro.
The information in this article is based on a press release statement from AEON Biopharma.
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