Femasys sets pricing for stock offering and private placement

ATLANTA - Femasys Inc. (NASDAQ: FEMY), a biomedical company specializing in women’s reproductive health with a current market capitalization of $27.78 million, has announced the pricing of its latest public stock offering and concurrent private placement. According to InvestingPro analysis, the company shows strong revenue growth but faces financial challenges, with analysts setting price targets ranging from $3 to $12. The public offering consists of 3.6 million shares at $0.85 each, while the private placement will see 1,686,275 shares sold at the same price to certain institutional stockholders and at $1.02 per share to some directors and officers of the company.

The combined gross proceeds from both the public offering and private placement are expected to be around $4.5 million. This capital raise comes at a crucial time, as InvestingPro data shows the company has been rapidly consuming cash, with negative free cash flow of $20.43 million in the last twelve months. Femasys has disclosed that the net proceeds will be directed towards expanding commercial efforts, advancing product development, and covering general corporate expenses, among other uses.

In addition to the initial offering, Femasys has granted the underwriters a 30-day option to purchase up to an additional 540,000 shares. Both the public offering and private placement are anticipated to close by June 2, 2025, contingent upon customary closing conditions. The closings of the two offerings are independent of each other.

Jones is serving as the sole book-running manager for the public offering and the placement agent for the private placement. The public offering securities are being offered pursuant to a Registration Statement on Form S-3 previously filed and declared effective by the U.S. Securities and Exchange Commission (SEC) on July 12, 2022.

The securities in the private placement are being issued in reliance on an exemption from registration under the Securities Act of 1933, as amended. Consequently, these securities may not be offered or sold in the United States absent registration or an exemption from registration requirements.

Femasys, known for its minimally invasive reproductive health technologies, is focusing on its FemBloc permanent birth control and FemaSeed localized directional insemination for infertility. The company also markets other products in the United States, including FemVue for fallopian tube assessment and FemCerv, an endocervical tissue sampler. Despite challenging market conditions, the company has achieved impressive revenue growth of 62% over the last twelve months. For more detailed financial insights and additional ProTips about Femasys, visit InvestingPro, which offers comprehensive analysis of the company’s financial health and growth prospects.

This news article is based on a press release statement and contains forward-looking statements that involve risks and uncertainties, including those related to the completion of the offerings and the anticipated use of proceeds. Femasys has not updated these forward-looking statements since the date of the press release.

In other recent news, Femasys Inc. announced plans for an underwritten public offering of its common stock, along with a private placement involving certain institutional stockholders and directors. The company aims to use the proceeds for expanding commercial efforts and product development. Concurrently, Femasys received a notice from Nasdaq about not meeting the minimum Market Value of Listed Securities requirement, giving the company until November 17, 2025, to regain compliance. Analysts from Jones Trading and H.C. Wainwright have made adjustments to their price targets for Femasys, with Jones Trading lowering it to $6 and H.C. Wainwright to $12, while both maintain a Buy rating on the stock. These changes follow Femasys’ first-quarter earnings report for 2025, which showed a significant drop in sales to $0.34 million, far below expectations. Despite the sales decline, there was a notable 78% increase in U.S. revenues quarter-over-quarter, attributed to new partnerships, such as the one with CNY Fertility. The company is also anticipating a CE mark approval for its FemBloc contraceptive technology by mid-2025, which would allow marketing in the EU. Meanwhile, the gradual rollout of FemaSeed in the U.S. continues, with partners like HRC Fertility promoting the product.

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