LA JOLLA, CA - GRI Bio, Inc. (NASDAQ: GRI), a biotechnology firm specializing in Natural Killer T cell modulators, has announced the pricing of its public offering expected to close around Monday. The company plans to sell 5 million shares at $1.10 each, alongside warrants for an additional 10 million shares at the same price.
The biopharmaceutical company, which focuses on treatments for inflammatory, fibrotic, and autoimmune diseases, expects to raise approximately $5.5M in gross proceeds from the sale. The offering includes Series B-1 Warrants and Series B-2 Warrants, both exercisable immediately but expiring at different times, five years and eighteen months from issuance, respectively.
GRI Bio intends to allocate the net proceeds from this offering towards working capital and general corporate purposes. A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the transaction.
The offering follows the effectiveness of a registration statement filed with the U.S. Securities and Exchange Commission (SEC) on February 1, 2024. The securities are offered through a prospectus, a part of the registration statement, which can be accessed on the SEC's website.
GRI Bio's lead program, GRI-0621, is an inhibitor of iNKT cell activity and is being developed as an oral therapeutic for idiopathic pulmonary fibrosis, a disease with a high unmet medical need. The company also has a pipeline of type 2 NKT agonists for systemic lupus erythematosus treatment and a library of over 500 proprietary compounds to fuel further development.
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties, including the timing and completion of the offering, compliance with NASDAQ listing requirements, and the company's future financial performance and regulatory outcomes. GRI Bio has cautioned that these forward-looking statements are not guarantees of future performance and that actual results may differ materially from those projected.
InvestingPro Insights
As GRI Bio, Inc. (NASDAQ: GRI) navigates through its public offering, real-time metrics and InvestingPro Tips provide a deeper understanding of the company's financial health and market performance. With a market capitalization of just $1.26M and a concerning EBITDA decline of -1250.13% for the last twelve months as of Q3 2023, the biotech firm's financial position appears precarious. The stock's recent performance reflects this instability, with a staggering -96.76% one-year price total return.
InvestingPro Tips highlight that GRI Bio's management has been actively engaged in share buybacks, which could be a signal of confidence in the company's value. Moreover, the firm holds more cash than debt on its balance sheet, suggesting a relatively stable liquidity position. However, it is important to note that the company is not profitable over the last twelve months, and the stock has experienced significant price drops over various time frames, including the last three months and six months.
For investors seeking a comprehensive analysis, InvestingPro offers additional tips that can shed light on the company's prospects. Currently, there are 11 more tips available for GRI Bio on InvestingPro. Interested readers can take advantage of a special New Year sale on InvestingPro subscriptions, with discounts of up to 50%. Use coupon code SFY24 for an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription, to gain access to these valuable insights.
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