Bullish indicating open at $55-$60, IPO prices at $37
REHOVOT, Israel - CollPlant Biotechnologies (NASDAQ: CLGN), an innovator in regenerative and aesthetic medicine, has unveiled plans for a registered direct offering and concurrent private placement expected to generate gross proceeds of approximately $3.6 million. The transaction involves the sale of 1,200,002 ordinary shares at $3.00 each, with an additional issuance of warrants exercisable at the same price per share. According to InvestingPro data, the company currently holds more cash than debt on its balance sheet, though it has been quickly burning through cash reserves.
The company, known for its non-animal-derived recombinant human collagen (rhCollagen) used in tissue regeneration and medical aesthetics, expects the offering to close around June 2, 2025, pending customary closing conditions. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering.
CollPlant’s CEO Yehiel Tal expressed confidence that the fresh capital would bolster the company’s balance sheet and provide increased operational flexibility to further its business objectives. Tal emphasized the company’s commitment to delivering long-term shareholder value as they progress in the regenerative and aesthetic medicine field. InvestingPro analysis shows analysts expect revenue growth of 22% this year, with the company projected to turn profitable. The stock has shown strong momentum, returning over 135% in the past week alone.
The net proceeds from the offering are earmarked for general corporate purposes, which may include but are not limited to, furthering the partnership with AbbVie on a dermal filler product candidate, supporting working capital, and funding research and development programs.
The ordinary shares in this offering are available through a shelf registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission (SEC) on December 20, 2022, and declared effective on January 10, 2023. The warrants issued in the private placement and the ordinary shares underlying such warrants have not been registered and will be subject to restrictions on resale in the U.S.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.
CollPlant’s partnership with Allergan, an AbbVie company, positions it within the global dermal filler market. The company’s proprietary plant-based genetic engineering technology facilitates the production of rhCollagen, which has applications across tissue repair, aesthetics, and organ manufacturing. With a market capitalization of $52 million and current ratio of 4.48, InvestingPro analysis suggests the stock is currently trading near its Fair Value. Discover 10+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report, available to subscribers.
This article is based on a press release statement from CollPlant Biotechnologies.
In other recent news, Collplant Biotechnologies reported disappointing financial results for Q4 2024, with earnings per share at -$0.34, missing the forecasted -$0.275. Revenue also fell significantly short of expectations, coming in at $164,000 against the anticipated $432,000. The company faced a net loss of $3.9 million for the quarter and a full-year net loss of $16.6 million. Despite these challenges, Collplant received a $2 million payment from AbbVie, highlighting progress in their ongoing partnership. The company is focusing on expanding distribution channels for its Virgenix STR product in Europe and Asia, aiming to tap into the sports medicine market. Analysts from H.C. Wainwright inquired about potential updates and milestones from AbbVie, but timelines remain uncertain. Collplant’s strategic initiatives in regenerative medicine and collagen technology continue to advance, with plans for clinical trials in the coming years.
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