PITTSBURGH – Carmell Corporation (NASDAQ:CTCX), a company specializing in skin and hair health products, has raised $3 million through a private placement of common stock. The transaction involved the sale of approximately 1.33 million shares at $2.25 each to a mix of new and existing investors. Notably, the company's CEO participated in the placement, purchasing shares at the closing sale price of $2.88 on the Nasdaq Capital Market on Monday.
The private placement is expected to increase Carmell's outstanding common shares to approximately 20.58 million. Brookline Capital Markets, part of Arcadia Securities, LLC, acted as the exclusive agent for the transaction.
Carmell is known for its proprietary Carmell Secretome™ technology, which harnesses growth factors and proteins from human platelets to support skin and hair health. The company has conducted extensive testing over seven years and developed a unique microemulsion formulation that avoids fourteen potentially harmful excipients, commonly used in cosmetics for texture and stability.
The company's product line is expanding to include men's skincare and topical haircare products, all designed to meet the high standards of professional care providers and retail consumers.
The shares sold in the private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an exemption from registration requirements. Carmell has committed to filing a registration statement with the Securities and Exchange Commission for the resale of the shares sold in the private placement.
This news is based on a press release statement.
InvestingPro Insights
As Carmell Corporation (NASDAQ:CTCX) navigates the market with its recent private placement, investors are keeping a close eye on the company's financial health and stock performance. According to InvestingPro data, Carmell's market capitalization currently stands at approximately $77.55 million. Despite a significant return over the last week of 12.5%, the company's stock has experienced a substantial decline over the past year, with a price total return of -71.63%. This volatility reflects the challenges faced by the company, which has not been profitable over the last twelve months.
InvestingPro Tips suggest that while Carmell operates with a moderate level of debt, it suffers from weak gross profit margins. These financial metrics are crucial for investors to consider, especially when evaluating the potential long-term growth of the company amidst its expansion into men's skincare and topical haircare products. Furthermore, the absence of dividend payments to shareholders may also influence investment decisions.
For those looking to delve deeper into Carmell's financials and stock performance, InvestingPro offers additional insights and tips, with a total of 6 InvestingPro Tips available for CTCX. Investors interested in accessing these tips and enhancing their investment strategies can visit https://www.investing.com/pro/CTCX and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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