Bullish indicating open at $55-$60, IPO prices at $37
Scientific Industries Inc. (OTC:SCND), a Delaware-based laboratory analytical instruments company currently valued at $9 million, has entered into a significant financial arrangement through a private placement, according to an 8-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment, despite its stock declining nearly 39% over the past year. On Monday, April 18, 2025, the company finalized a Securities Purchase Agreement with certain investors to raise $1.55 million through the sale of equity securities.
The transaction involved the issuance of 1,550,000 units, which included 1,050,000 shares of common stock, pre-funded warrants to purchase an additional 500,000 shares, and warrants to purchase 1,550,000 shares of common stock. The company has stated that the proceeds from this private placement will be allocated towards operations, working capital, and other general corporate purposes. This funding comes at a crucial time, as InvestingPro data shows the company has been quickly burning through cash, though it maintains a healthy current ratio of 4.74, indicating strong short-term liquidity.
Investors received warrants exercisable at $1.00 per share, which are immediately exercisable and set to expire six months from the date of issuance. These warrants also come with a stipulation that prevents investors, along with their affiliates, from owning more than 4.99% or 9.99% of the outstanding common stock post-exercise, subject to conditions.
In conjunction with the private placement, Scientific Industries has also committed to a Registration Rights Agreement, ensuring the registration of the shares and warrant shares for resale. The company is obligated to file a registration statement with the SEC within six months from the closing date and to keep it effective for one year.
The sale of shares and warrants was conducted in accordance with the exemption provisions of Section 4(2) of the Securities Act and corresponding state securities laws, indicating that the transaction was not open to the general public.
The filing emphasizes that the information provided should not be interpreted as an offer to sell or a solicitation to buy the securities. The details of the agreements, including the Securities Purchase Agreement and the Registration Rights Agreement, are attached as exhibits to the 8-K filing.
This financial move by Scientific Industries Inc. reflects the company’s strategic efforts to strengthen its financial position and support its corporate initiatives. While the company reported a negative EBITDA of $5.89 million in the last twelve months, InvestingPro analysis indicates positive expectations, with analysts forecasting both sales growth and a return to profitability this year. The information for this article is based on the latest SEC filing by the company and InvestingPro data, which offers 6 additional key insights about SCND’s financial health and future prospects in its comprehensive Pro Research Report.
In other recent news, Scientific Industries Inc. reported its financial results for the fourth quarter of 2024, highlighting a 24% increase in sales in its bioprocessing segment compared to the previous year. The company also successfully reduced operating expenses by $3 million and improved gross margins to 58%, with operative gross margins at 70%. Despite these advancements, the company continues to face net losses, though these have been reduced by approximately $1 million. In other developments, Scientific Industries announced the appointment of Nicholas Lavacca as its new Chief Financial Officer, effective April 1, 2025. Lavacca brings over three decades of experience in financial accounting and management, having previously served at Innovid Corp. Additionally, the company is preparing to launch a machine learning model targeting the mammalian cell culture market by the end of fiscal 2025. Analysts from firms like McKinsey anticipate a recovery in innovation-focused investments, which could benefit Scientific Industries in the coming years.
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