Revelation Biosciences announces warrant exercise and inducement

Revelation Biosciences, Inc. (NASDAQ:REVB), a pharmaceutical company specializing in the development of therapies, has entered into agreements with certain warrant holders to exercise Class D Common Stock Warrants for approximately 2.5 million shares at a reduced price. The company disclosed this transaction in a Form 8-K filed with the SEC today.

On Monday, the company announced it had issued inducement offer letters on August 21, 2024, to warrant holders, allowing them to exercise their existing warrants at a modified price of $1.50 per share. In return, the company will issue new inducement warrants. The deal is expected to generate around $3.8 million in gross proceeds before advisory fees.

This strategic move is aimed at bolstering Revelation Biosciences' financial position to support ongoing clinical trials for its product candidates, including GEM-AKI, GEM-CKD, and GEM-PSI. The funds will also cover the manufacturing of a clinical batch of Gemini, a planned Phase 1b clinical study for GEM-AKI in CKD patients, preclinical work for GEM-CKD, and the continued development of other products and therapies.

The inducement warrants, exercisable over five years for up to 5,096,120 shares of common stock at an exercise price of $1.00 per share, were issued in a private placement under Section 4(a)(2) of the Securities Act of 1933. These warrants and the shares issuable upon exercise have not been registered under the Securities Act and are therefore subject to restrictions on resale.

Furthermore, the exercise price for the company's Class C and Class D Common Stock Purchase Warrants has been adjusted to $1.00 per share. The company has committed to filing a resale registration statement on Form S-3 within twenty days post-closing to register the resale of the shares issued upon exercise of the inducement warrants.

Roth Capital Partners, LLC has been engaged as a financial advisor for the transaction, with the company agreeing to pay Roth a cash fee of approximately $267,546 plus expense reimbursements.

The company's actions, as detailed in the 8-K filing, reflect its proactive approach to financing its operations and advancing its clinical programs. This information is based on a press release statement.

In other recent news, Revelation Biosciences is facing potential delisting from the Nasdaq Capital Market due to non-compliance with the Nasdaq Listing Rule 5550(b)(1), which mandates a minimum stockholders’ equity of $2.5 million. The company has been given a 45-day period to present a plan to regain compliance. Additionally, the company has been ordered to pay a court judgment of approximately $7.3 million to LifeSci Capital LLC over a legal dispute regarding unpaid banking and advisory fees.

Revelation Biosciences also announced an adjustment to the exercise price of its Class C and Class D Common Stock Purchase Warrants. In the realm of product development, the company reported positive results from a Phase 1 clinical trial for Gemini, its proprietary immune preconditioning therapy.

Meanwhile, Revere Bank received positive attention from Roth/MKM analysts who maintained their Buy rating following promising Phase 1 trial results for the bank's drug, Gemini. These are all recent developments for both Revelation Biosciences and Revere Bank.

InvestingPro Insights

In light of Revelation Biosciences' recent strategic financing moves, a closer look at the company's financial health through InvestingPro data reveals notable figures. With an adjusted market capitalization of just $1.99 million, the company is operating on a tight financial canvas. The reported operating income stands at a loss of $9.53 million over the last twelve months as of Q2 2024, emphasizing the company's current financial challenges.

InvestingPro Tips highlight that Revelation Biosciences is quickly burning through cash, which aligns with the company's need to generate funds through warrant exercises. Additionally, the company does not pay dividends, pointing to a reinvestment of any available funds back into its clinical trials and product development. For investors considering the volatility of REVB, it's worth noting that the stock generally trades with high price volatility, which may be a factor for risk assessment.

For readers interested in a deeper analysis, there are over 14 additional InvestingPro Tips available at https://www.investing.com/pro/REVB, which can provide further insights into Revelation Biosciences' financials and stock performance.

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