Azitra Inc. issues new warrants in connection with stock sale

Azitra, Inc. (NYSE American: AZTR), a Delaware-based pharmaceutical company trading near $0.30 per share, has entered into a significant agreement leading to the issuance of new warrants and a commitment to future investor participation in financings.

According to InvestingPro analysis, the company’s stock has shown significant volatility, dropping nearly 99% over the past year while maintaining a positive cash position relative to its debt obligations. The company, specializing in pharmaceutical preparations, announced on Monday that it had closed an offering of its common stock, issuing 2,495,518 shares to select investors under a Securities Purchase Agreement dated February 4, 2025, and amended the following day.

Concurrent with the amendment to the SPA, Azitra and the investors signed a letter agreement on Thursday, outlining the company’s obligation to issue warrants for purchasing up to 2,245,967 shares of common stock. Additionally, the investors secured the right to partake in up to 50% of the company’s future financings for two years from the closing date of the agreement.

The warrants will become exercisable six months and one day post-issuance, with the exercise price set to be the greater of the book value or market value as determined by NYSE American Rules. Azitra is also required to file a registration statement for the shares underlying the warrants and strive for it to become effective within six months from the closing of the Letter Agreement.

This strategic move aims to strengthen the company’s financial position by ensuring investor commitment to future capital raising efforts. InvestingPro data reveals the company’s current financial health score stands at 1.58 (WEAK), with rapid cash burn rates suggesting the importance of securing additional funding. Get access to 14+ more exclusive ProTips and comprehensive financial metrics with InvestingPro.

The shares of common stock and the warrants issued are not registered under the Securities Act of 1933 and were offered based on exemptions from registration requirements. These securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

With a current ratio of 5.58 and minimal debt-to-equity ratio of 0.08, the company maintains strong short-term liquidity despite challenging market conditions.

The details of the warrants and the letter agreement are further outlined in Exhibits 4.1 and 10.1, respectively, attached to the Current Report on Form 8-K filed by the company. This news is based on a press release statement and provides investors with the latest developments in Azitra’s financial strategy.

In other recent news, Azitra Inc., a biopharmaceutical company, has been active in the financial market with several stock offerings. The company recently secured approximately $930,000 in a registered direct offering of common stock, selling over 3.3 million shares at $0.2785 per share. Maxim Group LLC served as the sole placement agent for the offering.

In another move, Azitra set the public offering price for nearly 4.9 million shares of its common stock at $0.30 per share, expecting to generate around $1.5 million in gross proceeds. The company also initiated a public offering of its common stock, with the option of pre-funded warrants as an alternative.

These recent developments indicate Azitra’s strategic efforts to raise capital for general corporate purposes and working capital. Azitra’s ongoing projects include ATR-12, a product under Phase 1b clinical trial for Netherton syndrome treatment, and ATR-04, aimed at treating EGFR inhibitor-associated rash, which has received FDA Fast Track designation.

Both products are developed from Azitra’s proprietary platform that leverages a library of bacterial strains alongside artificial intelligence and machine learning to identify potential drug-like molecules.

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