ZyVersa enters $10 million share purchase agreement with WVH

WESTON, Fla. - ZyVersa Therapeutics (NASDAQ:ZVSA), currently valued at $3.15 million market cap, has entered into a share purchase agreement with Williamsburg Venture Holdings that will allow the clinical stage biopharmaceutical company to sell up to $10 million worth of common stock over a 24-month period. According to InvestingPro data, the company maintains a positive cash-to-debt position, though its current share price of $0.66 represents a significant decline from its 52-week high of $6.30.

Under the agreement, ZyVersa has the right to sell, and WVH has the obligation to purchase, the company’s common stock at prices discounted from market value. ZyVersa will maintain sole discretion over the timing and amount of all stock sales. This flexibility could prove crucial, as InvestingPro analysis indicates the stock has experienced high price volatility, with a -81.41% return over the past year.

The company plans to use the funding to advance clinical development of its Cholesterol Efflux Mediator VAR 200, which targets chronic kidney diseases. The global drug market for kidney diseases was $18 billion in 2024 and is projected to reach $30 billion by 2034, according to Precedence Research data cited in the company’s announcement. With an EBITDA of -$8.45 million in the last twelve months and a current ratio of 0.18, the funding comes at a critical time for the company’s development pipeline.

As part of the agreement, ZyVersa will issue 2.5% of commitment shares to WVH over the term of the deal, based on the percentage of the $10 million in common stock purchased by the investor. The agreement does not include warrants, derivatives, or other share classes.

ZyVersa stated that the flexible funding structure will allow the company to be "judicious" about the timing and amount of equity sales as it works toward key milestones in its VAR 200 development program.

The company has filed details of the share purchase agreement with the Securities and Exchange Commission in a Form 8-K.

ZyVersa is focused on developing treatments for patients with renal and inflammatory diseases using its proprietary technologies. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels. Subscribers can access 9 additional ProTips and comprehensive financial metrics to better evaluate the company’s potential. This information is based on a company press release statement and InvestingPro data.

In other recent news, ZyVersa Therapeutics, Inc. has shared significant updates concerning its drug development initiatives. The company announced promising study results for its Inflammasome ASC Inhibitor IC 100, indicating potential as a disease-modifying therapy for Parkinson’s Disease. This study was funded by the Michael J. Fox Foundation and published in the journal Experimental and Molecular Medicine. Additionally, ZyVersa outlined strategic plans for IC 100 as a complementary therapy for obesity-related cardiometabolic issues, with preclinical studies set to begin in 2025. In parallel, the company is advancing its drug VAR 200 for Focal Segmental Glomerulosclerosis, with a Phase 2a proof-of-concept trial for Diabetic Kidney Disease patients planned for this year. Furthermore, ZyVersa has appointed CBIZ CPAs P.C. as its new certifying accountant following the resignation of Marcum LLP. This transition follows CBIZ CPAs’ acquisition of Marcum’s attest business. ZyVersa’s financial statements from Marcum did not contain adverse opinions, though they noted concerns about the company’s going concern status.

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