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

Rhea-AI Summary

Annovis Bio (NYSE: ANVS) has announced the pricing of a public offering consisting of 5,250,000 shares of common stock and warrants to purchase an equal number of shares at a combined price of $4.00 per share. The warrants will have an exercise price of $5.00 per share, exercisable immediately for five years after issuance.

The offering is expected to raise $21 million in gross proceeds before deducting underwriting discounts and expenses. The company plans to use the net proceeds for working capital and general corporate purposes, including the continued clinical development of their lead compound, Buntanetap. ThinkEquity is serving as the sole book-running manager for the offering, which is expected to close on February 4, 2025.

Positive

• Secured $21 million in gross proceeds through public offering
• Warrants provide additional potential funding through $5.00 exercise price
• Funds allocated for clinical development of lead compound Buntanetap

Negative

• Significant shareholder dilution through issuance of 5,250,000 new shares
• Offering price of $4.00 per share indicates potential discount to market price
• Additional dilution possible if warrants are exercised

Insights

Financial Analyst

The $21 million public offering by Annovis Bio represents a critical financing event that warrants careful analysis. The structure combines shares and warrants in a unit offering at $4.00 per share, with five-year warrants exercisable at $5.00. This creates a potential for additional future capital through warrant exercises, which could bring in up to $26.25 million if all warrants are exercised.

The offering's pricing strategy reveals important insights: The $4.00 unit price reflects current market conditions for small-cap biotech companies, while the $5.00 warrant exercise price provides a 25% premium incentive for future price appreciation. This structure balances immediate capital needs with future upside potential for investors.

The dilution impact is significant, with the 5.25M new shares representing a substantial increase to the current float. However, this must be viewed in context of:

• The company's need to fund continued clinical development of Buntanetap
• The challenging funding environment for pre-revenue biotech companies
• The strategic timing ahead of key clinical milestones

The choice of a traditional public offering, rather than a PIPE or registered direct offering, suggests confidence in market support and provides broader access to institutional investors. The involvement of ThinkEquity as sole book-runner indicates a focused distribution strategy typical for offerings of this size in the biotech sector.

For investors, this financing provides both challenges and opportunities. While the immediate dilution impact is substantial, the capital injection strengthens Annovis's ability to advance its clinical programs in Alzheimer's and Parkinson's disease. The warrant component offers potential upside participation while providing the company with a mechanism for future funding if clinical milestones are met successfully.

MALVERN, Pa., Feb. 03, 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 pricing of an 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. The warrants will have an exercise price of $5.00 per share and will be immediately exercisable upon issuance for a period of five years following the date of issuance. All of the common shares and associated warrants in the offering are being offered by the Company. Total gross proceeds from the offering, before deducting underwriters discounts and other offering expenses, are expected to be $21 million. The offering is expected to close on February 4, 2025, subject to satisfaction of customary closing conditions

The Company intends to use the net proceeds from the offering primarily for working capital and general corporate purposes, including the continued clinical development of the Company’s lead compound, Buntanetap.

ThinkEquity is acting as sole book-running manager for the offering.

The securities will be 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 will be made only by means of a written prospectus. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC on its website at www.sec.gov. Copies of the 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

What is the size and price of Annovis Bio's February 2025 public offering?

Annovis Bio's February 2025 public offering consists of 5,250,000 shares and warrants priced at $4.00 per combined unit, raising $21 million in gross proceeds.

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

The warrants have an exercise price of $5.00 per share and are immediately exercisable for a five-year period following issuance.

How will Annovis Bio (ANVS) use the proceeds from the February 2025 offering?

Annovis Bio plans to use the net proceeds for working capital, general corporate purposes, and continued clinical development of their lead compound, Buntanetap.

When will Annovis Bio's February 2025 public offering close?

The offering is expected to close on February 4, 2025, subject to customary closing conditions.