Reviva prices $10 million public offering at $0.50 per share

CUPERTINO, Calif. - Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH), currently valued at $35.6 million, announced Thursday the pricing of its public offering at $0.50 per share, expected to raise approximately $10 million in gross proceeds before deducting fees and expenses. The offering price represents a significant discount from the stock’s 52-week high of $4.28.

The offering consists of 20 million shares of common stock (or equivalents) along with Series C and Series D warrants to purchase up to 20 million additional shares each. The Series C warrants will expire in five years while the Series D warrants will expire in 12 months, both with an exercise price of $0.50 per share.

The transaction is expected to close on or about Friday, June 27, subject to customary closing conditions. A.G.P./Alliance Global Partners is serving as the sole placement agent for the offering.

Reviva intends to use the net proceeds to fund research and development activities and for general corporate purposes, according to the company’s statement. The securities are being offered through an effective shelf registration statement filed with the SEC in February 2024. InvestingPro analysis reveals the company faces profitability challenges, with analysts not expecting positive earnings this year. Subscribers can access 8 additional key insights about Reviva’s financial health.

Reviva is a late-stage biopharmaceutical company focused on developing therapies for central nervous system, inflammatory and cardiometabolic diseases. Its current pipeline includes two drug candidates, brilaroxazine and RP1208, both discovered in-house.

The offering was made to existing and new healthcare-focused institutional investors, based on information from the company’s press release.

In other recent news, Reviva Pharmaceuticals Holdings, Inc. announced its intention to conduct a public offering of common stock and warrants, with A.G.P./Alliance Global Partners acting as the sole placement agent. The proceeds are earmarked for research and development, working capital, and general corporate purposes. The company recently reported positive results from a year-long Phase 3 study of brilaroxazine, a drug candidate for schizophrenia, showing broad-spectrum efficacy and a well-tolerated safety profile. This study supports Reviva’s plans to submit a New Drug Application to the FDA. Benchmark analysts maintained a Speculative Buy rating with a $14 price target, emphasizing Reviva’s need for additional funding to advance its clinical programs. However, Boral Capital reduced its price target from $8 to $3, citing financial concerns and the risk of stock dilution. The company holds a cash balance of $13.5 million, which analysts believe is insufficient for upcoming milestones, including the RECOVER-2 trial and NDA submission. Reviva is exploring partnerships and licensing opportunities to secure the necessary capital for its operations.

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