Longeveron closes $5 million public offering of common stock

MIAMI - Longeveron Inc. (NASDAQ:LGVN) announced Monday the closing of its previously announced public offering, raising approximately $5 million in gross proceeds before deducting placement agent fees and other expenses. The announcement comes as InvestingPro data shows the company’s stock has declined over 72% in the past year, with shares currently trading at $0.69, near their 52-week low of $0.63.

The clinical-stage regenerative medicine biotechnology company sold 5,882,354 shares of Class A common stock (or pre-funded warrants) along with short-term warrants to purchase up to 14,705,885 additional shares at a combined public offering price of $0.85 per share. According to InvestingPro analysis, the company maintains a healthy current ratio of 5.61, indicating strong short-term liquidity despite rapidly burning through cash.

The short-term warrants have an exercise price of $0.85 per share, are immediately exercisable, and will expire 24 months after issuance. If fully exercised on a cash basis, these warrants could generate approximately $12.5 million in additional gross proceeds for the company.

Several board members and company insiders participated in the offering on the same terms as other investors. H.C. Wainwright & Co. served as the exclusive placement agent.

Longeveron plans to use the net proceeds to fund ongoing clinical and regulatory development of its laromestrocel product for treating hypoplastic left heart syndrome (HLHS), Alzheimer’s disease, and pediatric dilated cardiomyopathy. Funds will also support regulatory approvals, manufacturing activities for biologics license application readiness, capital expenditures, and working capital. With an EBITDA of -$16.49 million in the last twelve months, this capital raise is crucial for the company’s development pipeline. Discover more detailed financial insights and 12 additional ProTips with a subscription to InvestingPro.

The securities were offered through a registration statement on Form S-1 that became effective on August 8, 2025, according to the company’s press release statement.

Laromestrocel has received multiple FDA designations, including Orphan Drug, Fast Track, and Rare Pediatric Disease designations for the HLHS program, as well as Regenerative Medicine Advanced Therapy and Fast Track designations for the Alzheimer’s disease program. Despite these promising regulatory developments, the company’s market capitalization stands at just $10.43 million, with analysts maintaining price targets between $6 and $10 per share.

In other recent news, Longeveron Inc. has made significant strides in its efforts to develop advanced treatments for heart conditions. The company has received FDA approval for its Investigational New Drug (IND) application for laromestrocel, a stem cell therapy targeting pediatric dilated cardiomyopathy. This approval allows Longeveron to skip early-stage trials and move directly to a Phase 2 pivotal registration clinical trial, anticipated to start in the first half of 2026. Additionally, Longeveron has completed enrollment for its Phase 2b clinical trial of laromestrocel for Hypoplastic Left Heart Syndrome, with results expected in the third quarter of 2026.

In another development, Longeveron has licensed a U.S. patent for stem cell technology from the University of Miami, which could enhance treatments for heart diseases. The patent covers a method to derive specialized cells that can differentiate into human cardiac muscle cells. Longeveron has also appointed Than Powell as Chief Business Officer, who will oversee the company’s business strategy and international initiatives for its heart programs. These recent developments highlight Longeveron’s ongoing efforts to advance its therapeutic programs and strategic leadership.

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