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WATERTOWN, Mass. - Lyra Therapeutics, Inc. (NASDAQ:LYRA), currently trading at $13.38 with a market capitalization of $17.73 million, has secured approximately $5 million through a registered direct offering of common stock and warrants, according to a press release statement issued Friday. InvestingPro data shows the company is quickly burning through cash, making this financing crucial for operations.
The clinical-stage biotechnology company, which develops anti-inflammatory sinonasal implants for chronic rhinosinusitis, sold 423,372 shares of common stock or pre-funded warrants at an effective price of $11.81 per share. The transaction includes private placement warrants to purchase up to 846,744 additional shares. With revenue of just $1.19 million in the last twelve months and a current ratio of 2.96, the company maintains adequate liquidity despite operational challenges. Want deeper insights? InvestingPro subscribers have access to over 10 additional key metrics and analysis tools.
The private placement warrants have an exercise price of $11.56 per share, will be immediately exercisable, and will expire 24 months after the effective date of the resale registration statement. If these warrants are fully exercised, Lyra could receive additional gross proceeds of approximately $9.8 million.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering, which is expected to close on or about Friday, subject to customary closing conditions.
Lyra intends to use the net proceeds for working capital and general corporate purposes, including potential clinical development, manufacturing, and pre-commercialization expenses for its LYR-210 product candidate.
The registered direct offering is being conducted under a shelf registration statement previously filed and declared effective by the Securities and Exchange Commission on April 1, 2024. The private placement warrants were offered under Section 4(a)(2) of the Securities Act of 1933.
This financing comes after Lyra announced in May 2024 that it failed to attain the primary endpoint of its ENLIGHTEN 1 Phase 3 clinical trial, which led to the termination of approximately 87 employees. The company operates with moderate debt levels and maintains liquid assets exceeding short-term obligations, according to InvestingPro analysis, providing some financial flexibility during this challenging period.
In other recent news, Lyra Therapeutics announced successful results from its ENLIGHTEN-2 Phase 3 clinical trial for LYR-210, a treatment for chronic rhinosinusitis (CRS). The trial met its primary and key secondary endpoints, showing significant improvement in CRS symptoms over 24 weeks. This positive outcome has led to a substantial increase in the stock target by H.C. Wainwright, raising it from $2.00 to $16.00, though the Neutral rating was maintained. The company plans to engage with the FDA to discuss a New Drug Application for patients without nasal polyps. Additionally, Lyra has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing. Analyst firms, including BTIG, have reiterated a Neutral stance on the stock, noting the need for further trials to secure approval for broader patient groups. Lyra’s management remains optimistic about LYR-210’s potential as a single-administration therapy for CRS patients. The company is preparing to present these findings at the upcoming American Rhinologic Society meeting.
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