Jaguar Health completes $3.4 million private placement

SAN FRANCISCO - Jaguar Health, Inc. (NASDAQ:JAGX), a pharmaceutical company with a current market capitalization of $2.5 million, has finalized a private placement, securing approximately $3.448 million in funding through the issuance of convertible promissory notes and unregistered warrants. The placement, which was priced at-the-market under Nasdaq rules, involved key company executives and selected institutional and accredited investors. According to InvestingPro data, the company’s stock has declined over 95% in the past year, though analysis suggests the stock is currently undervalued.

The convertible notes, bearing a 6% annual interest rate, are set to mature in three months and can be converted into common stock shares at the investors’ discretion. The accompanying warrants are exercisable immediately and are valid for five years or until a specified corporate event occurs. InvestingPro analysis reveals the company operates with a debt-to-equity ratio of 2.52 and maintains a current ratio of 1.84, with 12 additional key financial metrics available to subscribers.

Jaguar’s President and CEO, Lisa Conte, remarked that the capital raised is deemed crucial for the company as it anticipates significant developments in the second quarter of 2025. These advancements are expected to revolve around the ongoing development of crofelemer, a drug used for rare diseases and cancer therapy-related diarrhea, which Jaguar believes could enhance the company’s value. The company maintains an impressive gross profit margin of 80.1%, though InvestingPro data indicates it’s currently experiencing significant cash burn, with detailed analysis available in the comprehensive Pro Research Report.

H.C. Wainwright & Co. served as the exclusive agent for this offering. The gross proceeds will be allocated towards Jaguar’s working capital and general corporate purposes, before accounting for the placement agent’s fees and other offering expenses.

The securities offered in this private placement are subject to the Securities Act of 1933, as amended, and have not been registered under the Securities Act or any state securities laws. As such, they may not be sold in the U.S. without registration or an exemption from registration requirements. Jaguar has agreed to file a resale registration statement for the shares of common stock underlying the convertible notes and warrants.

Jaguar Health focuses on creating plant-derived prescription medicines for gastrointestinal distress in both humans and animals. The company’s subsidiary, Napo Pharmaceuticals, has an FDA-approved drug for HIV/AIDS patients suffering from noninfectious diarrhea, while Napo Therapeutics, based in Italy, aims to broaden access to crofelemer in Europe for orphan and rare diseases. Jaguar also has an interest in Magdalena Biosciences, which is developing plant-based prescription medicines for mental health. With annual revenue of $10.48 million and significant growth potential, detailed financial analysis and future prospects are available through the exclusive InvestingPro Research Report, part of the platform’s coverage of over 1,400 US stocks.

This news article is based on a press release statement from Jaguar Health, Inc.

In other recent news, Jaguar Health reported a significant increase in revenue for the fourth quarter of 2024, with net revenue rising 53% compared to the same period in 2023. The company’s full-year revenue for 2024 reached $11.7 million, marking a 20% increase from the previous year, driven by higher Mytesi prescription volumes and product pipeline advancements. Jaguar Health also managed to reduce its loss from operations by $3.5 million, although it still operates at a loss. The company is optimistic about its future, with potential collaborations and licensing opportunities anticipated in the coming quarters. Analysts have noted these developments, although there were no specific upgrades or downgrades mentioned from major firms. Furthermore, Jaguar Health is pursuing fast-track regulatory pathways, which can be unpredictable, and is also facing market competition from larger pharmaceutical companies. Despite these challenges, the company remains focused on its strategic goals and potential growth opportunities.

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