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MALVERN, Pa. - Annovis Bio, Inc. (NYSE: ANVS), a clinical-stage pharmaceutical company with a market capitalization of $67 million specializing in the development of treatments for neurodegenerative diseases, has announced the pricing of its public offering. The offering includes 5.25 million shares of common stock and equal warrants at a price of $4.00 per share. The warrants, exercisable at $5.00 per share, will be immediately available and valid for five years from the date of issuance. According to InvestingPro data, the stock has experienced significant volatility, with shares down over 43% in the past six months.
The transaction is expected to generate gross proceeds of $21 million, before underwriting discounts and other expenses. The company plans to close the offering on February 4, 2025, subject to customary closing conditions. Annovis Bio intends to allocate the net proceeds for working capital and corporate purposes, which includes advancing the clinical development of their leading drug candidate, Buntanetap. InvestingPro analysis shows the company maintains a healthy current ratio of 2.66, with liquid assets exceeding short-term obligations, though analysts don’t expect profitability this year. InvestingPro subscribers can access 6 additional key insights about ANVS’s financial position.
ThinkEquity is serving as the sole book-running manager for the offering. The securities are being offered pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on February 1, 2024, and declared effective on February 12, 2024. Prospective investors can access the prospectus supplement and accompanying prospectus on the SEC’s website or directly from ThinkEquity. Analyst price targets for ANVS range from $21 to $72, reflecting diverse views on the company’s potential, as reported by InvestingPro.
This offering announcement follows the company’s ongoing efforts to address diseases like Alzheimer’s and Parkinson’s through innovative approaches targeting neurotoxic proteins. The clinical trials for Buntanetap are a significant part of Annovis Bio’s strategy to improve brain function and patient quality of life. The company’s overall financial health score is rated as WEAK by InvestingPro, with a beta of 1.64 indicating higher volatility than the broader market.
The company cautions that this press release contains forward-looking statements subject to risks and uncertainties, including those related to clinical trial plans and the potential effectiveness of Buntanetap. These statements reflect the company’s current expectations, and actual results could differ materially. Annovis Bio has detailed additional risk factors in its SEC filings, including its Annual and Quarterly Reports. The company’s financial position shows negative earnings per share of -$3.71 for the last twelve months, though it maintains a strong cash position relative to debt, according to InvestingPro analysis.
The information in this article is based on a press release statement from Annovis Bio, Inc.
In other recent news, Annovis Bio Inc. has made significant strides in its clinical trials, leadership, and intellectual property portfolio. The company has secured a U.S. patent for its drug, buntanetap, aimed at treating acute brain or nerve injuries. This complements existing patents in the EU, Japan, and other regions.
In addition, the U.S. Food and Drug Administration (FDA) has approved the company’s revised protocol for its pivotal Phase 3 Alzheimer’s disease study. The updated trial integrates two previously separate studies, aiming to streamline the development process for Annovis Bio’s investigational drug, buntanetap.
Annovis Bio also recently appointed William Fricker as its interim Chief Financial Officer. Fricker brings extensive experience in the finance sector, particularly within the biotech industry.
Furthermore, Annovis Bio’s lead drug candidate, buntanetap, has received clearance to advance into Phase 3 trials for the treatment of Alzheimer’s disease. This decision was based on Phase 2/3 data showing symptomatic improvement in patients with early Alzheimer’s.
Analyst firms Canaccord Genuity, EF Hutton, and H.C. Wainwright have all maintained a Buy rating on the company. These are some of the recent developments in Annovis Bio’s ongoing operations. The company’s current cash reserves are adequate to fund operations through the anticipated meetings with the FDA and until the start of two pivotal studies.
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