ZyVersa secures $2 million in funding for drug development

WESTON, Fla. - ZyVersa Therapeutics, Inc. (NASDAQ:ZVSA), a biopharmaceutical company focused on inflammatory and renal diseases, has entered into a financing agreement with a healthcare-focused U.S. institutional investor. The company, currently trading near its 52-week low of $0.94 and down nearly 88% over the past year according to InvestingPro data, seeks to strengthen its financial position. The deal, set to close on or about Sunday, involves the sale of over 2 million shares and equal warrants, aiming to raise approximately $2 million in gross proceeds.

The securities, priced at $0.95 for each share and accompanying warrant, will fund ZyVersa’s general working capital needs. The financing comes at a crucial time, as InvestingPro metrics reveal the company’s current ratio of 0.03, indicating significant liquidity challenges. The warrants are exercisable immediately upon shareholder approval at $1.00 per share and will expire after five years.

A.G.P./Alliance Global Partners is serving as the sole placement agent for this transaction, which is being conducted outside of a public offering. Consequently, the securities will not be initially registered under the Securities Act of 1933 and are subject to certain sale restrictions in the U.S.

In conjunction with this financing, ZyVersa has committed to filing a registration statement for the resale of the securities within 10 days post their annual report submission. The company will endeavor to have this statement declared effective within 75 days following the offering’s close.

Furthermore, ZyVersa has agreed to amend existing warrants, reducing the exercise price to $1.00 per share, contingent on stockholder approval. This amendment will also have a five-year expiration from the approval date.

ZyVersa, with its proprietary technologies, is developing first-in-class drugs for patients with significant unmet medical needs in inflammatory or kidney diseases. Their pipeline includes a monoclonal antibody for obesity-related metabolic complications and a phase 2 drug for a rare kidney disorder. With a market capitalization of just $2.21 million and current Fair Value analysis from InvestingPro suggesting the stock may be undervalued, investors seeking detailed financial analysis and additional insights can access over 10 more exclusive ProTips and comprehensive metrics through the platform.

This news is based on a press release statement and reflects the company’s current financing initiatives and ongoing commitment to advancing its product candidates.

In other recent news, ZyVersa Therapeutics has reported promising results from a study involving its Inflammasome ASC Inhibitor IC 100. The study, published in the journal Biomedicine & Pharmacotherapy, highlights IC 100’s potential as a treatment for heart failure with preserved ejection fraction (HFpEF) and related metabolic disorders. The research demonstrated cardioprotective effects and metabolic improvements in an obese animal model. IC 100 was shown to inhibit multiple inflammasome pathways, resulting in reduced inflammation and macrophage activation in cardiac and visceral adipose tissue. The study also noted decreased levels of the pro-inflammatory cytokine IL-18 and reduced macrophage infiltration in the heart. This led to a significant reduction in cardiac inflammation, decreased cardiac hypertrophy and fibrosis, and improved diastolic function. Additionally, the treatment showed positive effects on obesity-related parameters, such as reduced fat mass and improved insulin sensitivity. ZyVersa plans to initiate further preclinical studies to investigate IC 100’s effects, comparing it to semaglutide and assessing concurrent administration in diet-induced obesity models.

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