Femasys plans stock offering and private placement

ATLANTA - Femasys Inc. (NASDAQ: FEMY), a biomedical company focusing on women’s health with a market capitalization of $28 million, announced its intention to conduct an underwritten public offering of its common stock. According to InvestingPro data, the company has shown strong revenue growth of 62% in the last twelve months, despite operating at a loss. Alongside the public offering, the company is also planning a private placement with certain institutional stockholders and directors. The transactions are subject to market conditions, and there are no guarantees regarding their completion or the terms involved.

The public offering will also include an option for underwriters to purchase additional shares, up to 15% of the total offered in the public sale. Femasys has made clear that the closing of the public offering is independent of the private placement and vice versa.

Femasys plans to allocate the net proceeds from both the public offering and private placement towards expanding commercial efforts, developing its product candidates, and covering general corporate expenses, among other uses. The funding comes at a crucial time, as InvestingPro analysis shows the company’s EBITDA at -$19.47 million, with a current ratio of 0.93 indicating tight liquidity conditions. Despite these challenges, the company maintains a healthy gross profit margin of 66.24%.

The company has a history of developing in-office products for reproductive health, with FemBloc and FemaSeed being its leading candidates for permanent birth control and infertility treatment, respectively. Femasys also markets other reproductive health products in the United States.

The securities in the public offering are available under a registration statement that was declared effective by the SEC on July 12, 2022. The preliminary prospectus supplement and accompanying prospectus will be filed with the SEC and made accessible on the SEC’s website. The private placement will be conducted in accordance with exemptions from registration requirements under the Securities Act.

This announcement comes with the usual caveats of forward-looking statements, which are subject to risks, uncertainties, and the possibility that the anticipated offerings may not be completed as planned. With a beta of -2.52, InvestingPro data indicates the stock tends to move contrary to market trends, making it an interesting consideration for portfolio diversification. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better evaluate this investment opportunity.

The information for this article is based on a press release statement from Femasys Inc.

In other recent news, Femasys Inc. reported first-quarter 2025 sales of $0.34 million, significantly below H.C. Wainwright’s projection of $1.5 million, marking a 70% decrease from the previous quarter. Despite this, U.S. revenues rose by 78% quarter-over-quarter, with partnerships, including one with CNY Fertility, expected to boost sales later in the year. Femasys faces a potential delisting from Nasdaq for not meeting the Market Value of Listed Securities requirement, with a deadline to regain compliance by November 17, 2025. In analyst updates, H.C. Wainwright revised its price target for Femasys to $12 from $15 but maintained a Buy rating, citing slower-than-expected revenue growth. Similarly, Jones Trading reduced its price target to $6 from $10, also keeping a Buy rating, and noted the anticipated CE mark approval for Femasys’ FemBloc technology. H.C. Wainwright had previously raised the price target to $15 following the partnership with CNY Fertility, which expanded the availability of FemaSeed. The analysts highlighted that FemaSeed’s market penetration is progressing, with its availability in 53 centers across the U.S. These developments show that while Femasys is facing challenges, there are strategic efforts underway to enhance its market presence and revenue growth.

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