GRI Bio expands at-the-market offering by over $1 million

In a strategic move to increase its financial flexibility, GRI Bio, Inc. (NASDAQ:GRI), a Delaware-based pharmaceutical company, announced today an expansion of its at-the-market (ATM) equity offering. The company has filed a prospectus supplement with the Securities and Exchange Commission to potentially raise an additional $1,038,886 through the sale of its common stock.

This increase is in addition to the approximately $961,272 in shares already sold under the existing Sales Agreement with H.C. Wainwright & Co., LLC, which was initially dated May 20, 2024. The total amount of shares offered through this agreement could now reach up to $2 million if fully utilized.

The ATM offering allows GRI Bio to sell its shares directly into the market through H.C. Wainwright & Co., providing the company with a mechanism to finance operations or fund potential growth opportunities. The flexibility of this arrangement means that shares can be sold over time, responding to market conditions and the company's capital needs.

GRI Bio, which operates under the pharmaceutical preparations industry, has sought the legal opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. to ensure the legality of the issuance and sale of these additional shares. This move is a common practice to assure investors and regulatory bodies of the legitimacy of the offering.

The company's decision to expand its ATM offering comes as it continues to navigate the competitive pharmaceutical market, where funding is crucial for ongoing research and development, as well as for bringing new products to market.

In other recent news, GRI Bio, Inc. has regained compliance with Nasdaq's listing standards, canceling the previously scheduled hearing with the Nasdaq Hearings Panel. The biotechnology firm has been actively advancing its pipeline of Natural Killer T (NKT) cell modulators, with GRI-0621, an inhibitor of iNKT cell activity, leading the way. The company has also reported positive preclinical data for GRI-0621 in treating idiopathic pulmonary fibrosis, a condition in need of new treatments.

GRI Bio has also announced a public offering of over 2 million shares of common stock and Series C warrants, expected to generate gross proceeds of about $4 million. The firm has initiated a 1-for-13 reverse stock split to maintain compliance with Nasdaq's minimum bid price requirement. This move reduces the total outstanding shares from approximately 6.6 million to about 508,091 shares.

Moreover, GRI Bio reported positive preclinical data for its type 2 Natural Killer T (NKT) cell activators, GRI-0803 and GRI-0124, in treating systemic lupus erythematosus. An Investigational New Drug application for GRI-0803 is planned for the second half of 2024. The company has also been granted patents by the Korean Intellectual Property Office and the Canadian Intellectual Property Office, further strengthening its global intellectual property portfolio. These are the recent developments in GRI Bio's ongoing research and development efforts.

InvestingPro Insights

In light of GRI Bio's recent strategic decisions to expand its at-the-market equity offering, it is instrumental to consider the company's financial health and market performance. As per InvestingPro data, GRI Bio holds a very modest market capitalization of $0.47 million, indicating a relatively small player within the pharmaceutical industry. The company's P/E ratio, both standard and adjusted for the last twelve months as of Q1 2024, stands at -0.01 and -0.04 respectively, reflecting its lack of profitability during this period. Additionally, the price to book ratio for the same timeframe is 0.17, which could suggest the stock is undervalued relative to its assets.

Turning to InvestingPro Tips, GRI Bio's financial situation shows a mixed picture. On the positive side, the company holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations, which may provide some financial stability in the short term. However, the company is quickly burning through cash and has not been profitable over the last twelve months, which could raise concerns about its long-term sustainability. Moreover, the stock has suffered a significant decline, with a 1-month price total return of -40.48% and a 3-month price total return of -74.5%, reflecting a bearish sentiment among investors.

For readers looking to delve deeper into GRI Bio's financial metrics and gain additional insights, InvestingPro offers a variety of tips that could help in making more informed investment decisions. With the use of coupon code PRONEWS24, users can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to a comprehensive suite of tools and analytics. There are 13 additional InvestingPro Tips available that can provide further guidance on the company's financial and market performance.

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