Annovis Bio, Inc. Announces Closing of $21 Million Public Offering

Rhea-AI Summary

Annovis Bio (NYSE: ANVS) has completed its previously announced public offering, raising $21 million in gross proceeds. The offering consisted of 5,250,000 shares of common stock and warrants to purchase an additional 5,250,000 shares at a combined price of $4.00 per share and associated warrant. The warrants are immediately exercisable at $5.00 per share for five years.

The company plans to use the net proceeds primarily to fund the Phase 3 clinical development of Buntanetap for Alzheimer's disease, along with working capital and general corporate purposes. ThinkEquity served as the sole book-running manager for the offering, which was conducted under a shelf registration statement on Form S-3.

Positive

• Secured $21 million in gross proceeds from public offering
• Warrants provide potential for additional future funding at $5.00 per share
• Funds allocated for Phase 3 study of Buntanetap in Alzheimer's disease

Negative

• Significant shareholder dilution through issuance of 5.25 million new shares
• Additional potential dilution from 5.25 million warrant shares
• Offering price of $4.00 reflects a discount to market price

Insights

Financial Analyst

The $21 million public offering by Annovis Bio represents a critical financing event that warrants careful analysis. The offering's structure reveals important strategic considerations:

• The combined unit price of $4.00 represents a premium to the current trading price, suggesting strong institutional interest despite market conditions
• The warrant exercise price of $5.00 indicates management's confidence in potential upside, while providing future financing flexibility if exercised
• The 1:1 warrant ratio with immediate exercisability for 5 years creates significant potential dilution but also offers leverage for additional capital if clinical milestones are met

The financing arrives at a important juncture as Annovis advances Buntanetap into Phase 3 trials for Alzheimer's disease. Phase 3 trials typically require substantial capital, often $30-50 million or more, suggesting this raise provides runway but may not fully fund the program to completion. The company's strategic focus on neurodegenerative diseases, particularly Alzheimer's and Parkinson's, positions them in a high-value therapeutic area with significant unmet needs.

The offering's timing and structure reflect broader challenges in biotech financing, where companies must balance immediate capital needs with long-term value creation. The warrant component provides a sweetener for investors while potentially reducing immediate dilution compared to a straight equity offering. However, investors should monitor the company's burn rate and potential need for additional financing as the Phase 3 trial progresses.

MALVERN, PA, Feb. 04, 2025 (GLOBE NEWSWIRE) -- via IBN - Annovis Bio, Inc. (NYSE: ANVS) (“Annovis” or the “Company”), a late-stage clinical drug platform company pioneering transformative therapies for neurodegenerative diseases such as Alzheimer’s disease (AD) and Parkinson’s disease (PD), today announced the closing of its previously announced underwritten public offering of 5,250,000 shares of common stock and warrants to purchase 5,250,000 shares of common stock at a combined public offering price of $4.00 per share and associated warrant. The warrants have an exercise price of $5.00 per share and are immediately exercisable upon issuance for a period of five years following the date of issuance. Total gross proceeds from the offering, before deducting the underwriter’s discounts and other offering expenses, were $21 million.

The Company intends to use the net proceeds from the offering primarily for the continued clinical development of the Company’s lead compound, Buntanetap in a Phase 3 study for Alzheimer’s disease, and for working capital and general corporate purposes.

ThinkEquity acted as the sole book-running manager for the offering.

The securities were offered and sold pursuant to a shelf registration statement on Form S-3, as amended (File No. 333-276814), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 1, 2024, and declared effective on February 12, 2024. The offering was made only by means of a written prospectus. A final prospectus supplement and accompanying prospectus describing the terms of the offering have been filed with the SEC on its website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Annovis Bio, Inc.

Headquartered in Malvern, Pennsylvania, Annovis is dedicated to addressing neurodegeneration in diseases such as AD and PD. The company’s innovative approach targets multiple neurotoxic proteins, aiming to restore brain function and improve the quality of life for patients. For more information, visit www.annovisbio.com and follow us on LinkedIn, YouTube, and X.

Forward Looking Statements
This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, the Company’s plans related to clinical trials. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, those related to patient enrollment, the effectiveness of Buntanetap, and the timing, effectiveness, and anticipated results of the Company’s clinical trials evaluating the efficacy, safety, and tolerability of Buntanetap. Additional risk factors are detailed in the Company’s periodic filings with the SEC, including those listed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are based on information available to the Company as of the date of this release. The Company expressly disclaims any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Contact:
Annovis Bio Inc.
101 Lindenwood Drive
Suite 225
Malvern, PA 19355
www.annovisbio.com

Investor Contact:
Scott McGowan
InvestorBrandNetwork (IBN)
Phone: 310.299.1717
www.annovisbio.com/investors-relations
IR@annovisbio.com

FAQ

How much did Annovis Bio (ANVS) raise in its February 2025 public offering?

Annovis Bio raised $21 million in gross proceeds through its February 2025 public offering.

What are the terms of ANVS warrants issued in the February 2025 offering?

The warrants have an exercise price of $5.00 per share, are immediately exercisable, and have a five-year term from the date of issuance.

How will Annovis Bio use the proceeds from its February 2025 offering?

The proceeds will primarily fund the Phase 3 clinical development of Buntanetap for Alzheimer's disease, along with working capital and general corporate purposes.

How many shares and warrants did ANVS issue in its February 2025 offering?

Annovis Bio issued 5,250,000 shares of common stock and warrants to purchase an additional 5,250,000 shares.

What was the combined offering price for ANVS shares and warrants?

The combined public offering price was $4.00 per share and associated warrant.