Firefly Neuroscience Announces Exercise of Warrants for Total Proceeds of $8.8 Million

Rhea-AI Summary

Firefly Neuroscience (NASDAQ: AIFF) has received $8.8 million from the exercise of warrants, significantly strengthening its cash position through mid-2026. The proceeds came from two warrant exercises: 823,530 shares at $6.83 and 800,000 shares at $4.00, originally issued in private placements from August and December 2024. No new warrants were issued as part of these exercises.

The funds will support general working capital needs, including Firefly's initiative to develop the world's first foundation model of the human brain using their FDA-cleared Brain Network Analytics (BNA™) technology platform. The company focuses on developing AI solutions for improving brain health outcomes in patients with neurological and mental disorders.

Positive

• Secured $8.8 million in additional funding through warrant exercises
• Extended cash runway into mid-2026
• No dilutive new warrants issued in connection with the exercises
• Strengthened cash position for strategic initiatives

Negative

• Issuance of 1,623,530 new shares resulting in dilution for existing shareholders

Insights

Financial Analyst

The $8.8 million capital injection through warrant exercises represents a strategic victory for Firefly Neuroscience, particularly noteworthy given current market conditions where capital raising often comes with significant dilution or unfavorable terms. The exercise of warrants at $6.83 and $4.00 - both substantially above the original issue prices - signals strong investor confidence in Firefly's FDA-cleared BNA™ technology and its ambitious AI brain modeling initiative.

The extended cash runway into mid-2026 is particularly significant for three reasons: First, it provides approximately 16 months of operational flexibility, critical for a company developing complex AI healthcare solutions. Second, it eliminates immediate financing pressure, allowing management to focus on execution rather than fundraising. Third, it strengthens Firefly's negotiating position for future partnerships or strategic opportunities.

The clean nature of this financing - with no new warrant issuance - is especially positive as it avoids the complex 'warrant overhang' that often plagues small-cap biotech companies. This structure suggests management's commitment to minimizing dilution while maintaining strong institutional support.

The timing of these exercises, coming shortly after the announcement of their brain foundation model initiative, indicates that major shareholders are aligning with the company's strategic pivot toward AI-driven neuroscience. This vote of confidence is particularly valuable in the current market environment where AI healthcare companies face increased scrutiny over their technological capabilities and commercial viability.

Extends cash runway well into mid-2026; no new/replacement warrants issued

KENMORE, N.Y., Feb. 21, 2025 (GLOBE NEWSWIRE) -- Firefly Neuroscience, Inc. (“Firefly,” or the “Company”) (NASDAQ: AIFF), an Artificial Intelligence (“AI”) company developing innovative solutions that improve brain health outcomes for patients with neurological and mental disorders, is pleased to announced that it has received total proceeds of $8,824,710 from the exercise of warrants to purchase 823,530 shares of the common stock of the Company, par value $0.0001 per share (“common stock”), at an exercise price of $6.83, and warrants to purchase 800,000 shares of commons stock, at an exercise price of $4.00, respectively. The warrants were issued pursuant to private placements that closed on August 12, 2024 and December 20, 2024, and no new warrants were issued by the Company as a result of the exercises.

The proceeds from the exercise of the warrants will be used for general working capital purposes, including Firefly’s recently announced strategic initiative to build the world’s first foundation model of the human brain using its U.S. Food and Drug Administration (FDA)-cleared Brain Network Analytics (“BNA™”) technology platform.

“I want to thank our shareholders for such a strong vote of confidence in our ability to unleash the power of our FDA-cleared BNA™ technology,” said Greg Lipschitz, Executive Chairman of Firefly. “The warrant exercises have significantly strengthened our current cash position, and we are now in the enviable position of having cash runway well into mid-2026.”

About Firefly
Firefly (NASDAQ: AIFF) is an Artificial Intelligence (“AI”) company developing innovative solutions that improve brain health outcomes for patients with neurological and mental disorders. Firefly’s FDA-510(k) cleared Brain Network Analytics (BNA™) technology revolutionizes diagnostic and treatment monitoring methods for conditions such as depression, dementia, anxiety disorders, concussions, and ADHD. Over the past 15 years, Firefly has built a comprehensive database of brain wave tests, secured patent protection, and achieved FDA clearance. The Company is now launching BNA™ commercially, targeting pharmaceutical companies engaged in drug research and clinical trials, as well as medical practitioners for clinical use.

Brain Network Analytics was developed using artificial intelligence and machine learning on Firefly’s extensive proprietary database of standardized, high-definition longitudinal electroencephalograms (EEGs) of over 17,000 patients representing twelve disorders, as well as clinically normal patients. BNA™, in conjunction with an FDA-cleared EEG system, can provide clinicians with comprehensive insights into brain function. These insights can enhance a clinician’s ability to accurately diagnose mental and cognitive disorders and to evaluate what therapy and/or drug is best suited to optimize a patient’s outcome.

Please visit https://fireflyneuro.com/ for more information.

Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” for purposes of the federal securities laws concerning Firefly. These forward-looking statements include express or implied statements relating to Firefly’s management teams’ expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting Firefly will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Firefly’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to those factors described under the heading “Risk Factors” in the reports and other filings of Firefly with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of Firefly’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. It is not possible to predict or identify all such risks. Forward-looking statements included in this press release only speak as of the date they are made, and Firefly does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Investor & Media Contact
Stephen Kilmer
(646) 274-3580
stephen.kilmer@fireflyneuro.com

FAQ

How much did Firefly Neuroscience (AIFF) raise through warrant exercises in February 2025?

Firefly Neuroscience raised $8,824,710 through the exercise of warrants in February 2025.

What is the exercise price of AIFF's warrants from August 2024?

The warrants from August 2024 had an exercise price of $6.83 per share.

How many new shares were issued by AIFF through the warrant exercises?

A total of 1,623,530 new shares were issued, comprising 823,530 shares at $6.83 and 800,000 shares at $4.00.

How long will AIFF's cash runway extend following the warrant exercises?

The company's cash runway has been extended well into mid-2026 following the warrant exercises.

What will AIFF use the proceeds from the warrant exercises for?

The proceeds will be used for general working capital purposes, including building the world's first foundation model of the human brain using their FDA-cleared BNA™ technology.