Azitra, Inc. Announces Closing of Public Offering

Rhea-AI Summary

Azitra, Inc. (NYSE American: AZTR), a clinical-stage biopharmaceutical company focused on precision dermatology, has successfully closed its public offering of 16,667,000 shares of common stock at $0.30 per share. The offering raised approximately $5 million in gross proceeds. ThinkEquity acted as the sole book-running manager for the offering. Azitra plans to use the net proceeds for clinical trials, product development, research and development, clinical manufacturing, working capital, and other general corporate purposes. The company has also granted underwriters a 45-day option to purchase up to an additional 2,500,000 shares to cover over-allotments.

Positive

• Successfully raised approximately $5 million in gross proceeds
• Funds to be used for clinical trials, product development, and R&D
• Additional 45-day option for underwriters to purchase up to 2,500,000 more shares

Negative

• Potential dilution of existing shareholders' equity due to new share issuance
• Low share price of $0.30 may indicate market concerns or financial challenges

Insights

Financial Analyst

Azitra's recent public offering marks a significant milestone for the clinical-stage biopharmaceutical company. The successful closing of the offering, raising approximately $5 million in gross proceeds, provides a important influx of capital for the firm's ongoing operations and development initiatives. However, it's important to note that this comes at a cost of significant dilution, with 16,667,000 new shares issued at a price of $0.30 per share.

The low offering price suggests potential challenges in the company's valuation or market perception. This could be due to various factors such as the early-stage nature of their pipeline or general market conditions in the biotech sector. The additional 45-day option for underwriters to purchase up to 2,500,000 more shares could lead to further dilution if exercised.

The stated use of proceeds for clinical trials, product development and working capital is typical for a company at this stage. However, investors should closely monitor how efficiently these funds are utilized to advance Azitra's pipeline in precision dermatology. The involvement of ThinkEquity as the sole book-running manager might indicate interest from larger investment banks, which could be a point of concern for potential investors.

Overall, while the offering provides necessary capital, it comes with significant dilution. The company's ability to translate this funding into meaningful clinical progress will be important for its future prospects and potential return on investment.

Biotech Industry Expert

Azitra's focus on precision dermatology positions it in an interesting niche within the broader biopharmaceutical landscape. The successful completion of this public offering is a critical step for the company, providing essential funding to advance its pipeline. However, the relatively small size of the offering ($5 million) raises questions about the scope and pace of their clinical development plans.

In the competitive world of biotech, $5 million is a modest sum that may only support clinical activities. This could potentially slow down Azitra's progress compared to better-funded competitors in the dermatology space. The company will need to be extremely judicious in allocating these resources to maximize their impact on their most promising candidates.

The low offering price of $0.30 per share is particularly noteworthy. This could be indicative of several factors: early-stage pipeline with high risk, challenging market conditions for biotech stocks, or investor confidence in the company's near-term prospects. It will be important for Azitra to demonstrate clear clinical progress and potentially seek additional funding or partnerships to bolster their position in the precision dermatology field.

Investors should closely monitor upcoming milestones, particularly any data readouts from ongoing or planned clinical trials. These will be critical in validating Azitra's approach and potentially improving their market position for future funding rounds or partnership opportunities.

BRANFORD, Conn.--(BUSINESS WIRE)-- Azitra, Inc. (NYSE American: AZTR) (the “Company”), a clinical-stage biopharmaceutical company focused on developing innovative therapies for precision dermatology, today announced the closing of its previously announced public offering of 16,667,000 shares of common stock, at a public offering price of $0.30 per share. Total gross proceeds from the offering, before deducting underwriting discounts and other offering expenses, were approximately $5 million. All of the shares were sold by the Company. In addition, Azitra has granted the underwriters a 45-day option to purchase up to an additional 2,500,000 shares of common stock to cover over-allotments at the public offering price, less the underwriting discount.

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

The Company intends to use the net proceeds for clinical trials and product development, research and development, clinical manufacturing as well as for working capital and other general corporate purposes.

A registration statement on Form S-1 (File No. 333-276598) relating to the shares was filed with the Securities and Exchange Commission (“SEC”) and became effective on February 13, 2024. A prospectus relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov. The offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from ThinkEquity, 17 State Street, 41st 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 Azitra, Inc.

Azitra, Inc. is an early-stage clinical biopharmaceutical company focused on developing innovative therapies for precision dermatology using engineered proteins and topical live biotherapeutic products. The Company has built a proprietary platform that includes a microbial library comprised of approximately 1,500 unique bacterial strains that can be screened for unique therapeutic characteristics. The platform is augmented by artificial intelligence and machine learning technology that analyzes, predicts and helps screen the Company’s library of strains for drug like molecules.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding Azitra’s expectations on the anticipated use of proceeds from the offering. Any forward-looking statements in this press release are based on current expectations, estimates and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties are described in our final prospectus dated February 13, 2024 filed with the SEC on February 15, 2024. Azitra explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725675771/en/

Norman Staskey

Chief Financial Officer

staskey@azitra.com

Source: Azitra, Inc.

FAQ

How much did Azitra (AZTR) raise in its recent public offering?

Azitra (AZTR) raised approximately $5 million in gross proceeds from its recent public offering of 16,667,000 shares of common stock at $0.30 per share.

What is the intended use of funds from Azitra's (AZTR) public offering?

Azitra (AZTR) intends to use the net proceeds from the offering for clinical trials, product development, research and development, clinical manufacturing, working capital, and other general corporate purposes.

Who was the book-running manager for Azitra's (AZTR) public offering?

ThinkEquity acted as the sole book-running manager for Azitra's (AZTR) public offering.

What additional option did Azitra (AZTR) grant to underwriters in its public offering?

Azitra (AZTR) granted the underwriters a 45-day option to purchase up to an additional 2,500,000 shares of common stock to cover over-allotments at the public offering price, less the underwriting discount.