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MIAMI - Veru Inc. (NASDAQ:VERU) announced Thursday the pricing of an underwritten public offering expected to raise approximately $25.2 million in gross proceeds. The offering includes 1.4 million shares of common stock, pre-funded warrants to purchase up to 7 million shares, and accompanying Series A and B warrants. The offering comes as the company, currently valued at approximately $51 million in market capitalization, trades at $3.50 per share according to InvestingPro data.
The biopharmaceutical company priced the combined package of each common share with accompanying Series A and B warrants at $3.00. For investors choosing pre-funded warrants instead of common stock, the combined price is $2.999.
If all warrants from this offering were exercised at their exercise price, Veru would receive additional gross proceeds of approximately $50.4 million before expenses.
The company intends to use the proceeds primarily to fund the development of enobosarm, focusing on Phase 2b PLATEAU clinical study activities. Additional funds will support working capital needs, existing vendor obligations, and other general corporate purposes, including potential development partnerships for enobosarm.
Canaccord Genuity LLC and Oppenheimer & Co. Inc. are acting as joint book-running managers for the offering, which is expected to close around October 31, 2025, subject to customary closing conditions.
The securities are being offered pursuant to a shelf registration statement previously filed with the Securities and Exchange Commission and declared effective on April 14, 2023.
Veru describes itself as a late clinical stage biopharmaceutical company focused on developing innovative medicines for cardiometabolic and inflammatory diseases, according to the press release statement.
In other recent news, Veru Inc. has announced a public offering of common stock and warrants to fund its drug development initiatives. The company is also offering pre-funded warrants as an alternative to common stock, with all securities being offered by Veru. Additionally, Veru has settled an $8.8 million debt with Onconetix, Inc., using a combination of cash, preferred stock, and warrants. The FDA has provided guidance for Veru’s obesity drug candidate, enobosarm, confirming that incremental weight loss can be a primary endpoint for approval. The FDA also approved the 3mg dosage for future clinical development, encouraging the inclusion of younger patients with obesity in studies.
In terms of analyst activity, Oppenheimer has raised its price target for Veru to $25, maintaining an Outperform rating, following updates on the enobosarm drug. Meanwhile, Raymond James has lowered its price target to $20 from $30, still keeping an Outperform rating, noting effective expense management in Veru’s recent third-quarter results. These developments highlight Veru’s ongoing efforts in drug development and financial management.
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