Artelo Biosciences prices $2 million public offering of common stock

NEW YORK - Artelo Biosciences, Inc. (NASDAQ:ARTL), currently trading at $5.85 and showing high price volatility according to InvestingPro data, has priced its previously announced underwritten public offering, according to a press release statement issued Tuesday.

The clinical-stage pharmaceutical company, with a market capitalization of $11.82 million, is offering 441,210 shares of common stock at $4.40 per share and pre-funded warrants to purchase up to 13,335 shares at $4.399 per warrant. The aggregate gross proceeds are expected to be approximately $2.0 million before deducting underwriting discounts and other offering expenses. InvestingPro analysis indicates the company holds more cash than debt, though its current ratio of 0.39 suggests tight liquidity.

The company has granted underwriters a 45-day option to purchase up to an additional 68,181 shares at the public offering price, less underwriting discounts to cover potential over-allotments.

R.F. Lafferty & Co., Inc. is acting as the sole book-running manager for the offering, which is expected to close on October 1, 2025, subject to customary closing conditions.

The securities are being offered pursuant to a "shelf" registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission and declared effective on July 14, 2023.

Artelo Biosciences focuses on developing treatments that modulate lipid-signaling pathways for people living with cancer, pain, dermatologic, or neurological conditions. The company has not specified how it plans to use the proceeds from this offering.

In other recent news, Artelo Biosciences announced the successful closing of its underwritten public offering, securing approximately $3 million in gross proceeds. The company sold 640,924 shares of common stock and pre-funded warrants to purchase up to 40,894 shares. This follows Artelo’s interim data release from its Phase 2 Cancer Appetite Recovery Study, which indicated that patients treated with ART27.13 experienced weight gain and improvements in lean body mass. Additionally, Artelo’s proprietary CBD:tetramethylpyrazine cocrystal, ART12.11, showed enhanced effectiveness in treating stress-induced depression and anxiety in a preclinical study. Meanwhile, D. Boral Capital downgraded Artelo’s stock rating from Buy to Hold, citing uncertainty after the company’s recent capital raise. The downgrade was influenced by concerns over a "confusing crypto-related initiative" linked to the capital raise. Artelo Biosciences continues to focus on its clinical-stage pharmaceutical developments amidst these recent activities.

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