Azitra, Inc. Announces Pricing of $10.0 Million Public Offering

Rhea-AI Summary

Azitra, Inc. (NYSE American: AZTR), a clinical-stage biopharmaceutical company focused on precision dermatology, has announced the pricing of a $10.0 million public offering. The offering includes 6,665,000 shares of common stock and Class A warrants to purchase up to 13,330,000 shares at a combined price of $1.50 per share and accompanying warrants. The warrants will have an initial exercise price of $1.50 per share, be immediately exercisable, and expire after five years. The offering is expected to close around July 25, 2024. Maxim Group is the exclusive placement agent. Azitra plans to use the net proceeds for working capital and general corporate purposes.

Positive

• Successful pricing of a $10.0 million public offering
• Immediate exercisability of warrants, providing potential for additional capital
• Funds to be used for working capital and general corporate purposes, potentially supporting company growth

Negative

• Potential dilution of existing shareholders' ownership due to new share issuance
• Warrant exercise price set at current offering price, indicating no premium
• Additional shares from warrant exercise could further dilute ownership in the future

Financial Analyst

Analysis: Azitra, Inc.'s announcement of a $10.0 million public offering presents a significant development for the company, especially given its status as a clinical-stage biopharmaceutical entity. The influx of capital is intended for working capital and general corporate purposes, which indicates a focus on keeping operations running smoothly while potentially accelerating R&D efforts. The pricing at $1.50 per share, combined with the Class A warrants exercisable at the same price, suggests that the company aims to attract a broad base of investors by offering a straightforward and accessible investment structure.

Implications: In the short term, this offering could lead to stock dilution, which may negatively impact existing shareholders. However, the infusion of funds should strengthen the company's financial position, enhancing its ability to pursue ongoing and future projects. Long-term investors might see this as a strategic move to bolster financial resources, possibly leading to more robust growth and development prospects.

Context: Public offerings are a common method for clinical-stage companies to raise much-needed capital without taking on debt. This is particularly relevant in the biopharmaceutical sector, where the financial demands of research, clinical trials and regulatory compliance are substantial. The involvement of Maxim Group LLC as the exclusive placement agent adds credibility to the transaction, potentially boosting investor confidence.

Market Research Analyst

Analysis: The structure and terms of this public offering are quite appealing from a market perspective. The use of Class A warrants provides investors with an added incentive, as it offers the potential for future gains without significant upfront costs. This can be especially attractive in a high-risk, high-reward sector like biopharmaceuticals. The exercisable nature of the warrants from the issue date until their expiry in five years aligns with the typical investment horizons in this space.

Implications: For retail investors, the opportunity to invest at a relatively low entry point ($1.50 per share) with additional warrants may prove compelling, especially given the potential upside if Azitra's therapies show promising results in clinical trials. The five-year window for exercising warrants also provides a substantial timeframe for the company's value to appreciate.

Context: The timing of this offering is critical; occurring after the SEC's declaration of the registration statement's effectiveness suggests that Azitra is working within a well-regulated framework, which should reassure investors. Moreover, the intended use of proceeds for working capital and general corporate purposes hints at a strategic allocation towards operational stability rather than immediate R&D blitz, which could be a prudent move in the current market environment.

Biopharmaceutical Expert

Analysis: Azitra, Inc.'s focus on precision dermatology marks it as a player in a specialized and potentially lucrative niche within the biopharmaceutical industry. The funding raised through this public offering will likely be instrumental in supporting the company's pipeline of innovative therapies. The detailed terms of the warrants and the public offering price reflect a well-thought-out strategy to secure capital while providing value to investors.

Implications: Clinical-stage companies like Azitra often face significant financial hurdles, particularly in the costly stages of clinical trials and regulatory approval processes. This infusion of $10.0 million, gross, is critical for the company to maintain momentum in its research and development activities. However, the reliance on public offerings also indicates that the company may not yet be generating sufficient revenue from its operations, a common scenario for firms at this stage.

Context: The dermatology market is highly competitive but offers substantial growth potential, particularly with the rise of precision medicine. By securing additional funds, Azitra places itself in a better position to advance its therapies through the clinical pipeline, potentially achieving significant milestones that could drive future stock performance. Investors should watch for any upcoming clinical trial results as key indicators of the company's progress and potential.

BRANFORD, Conn.--(BUSINESS WIRE)-- Azitra, Inc. (NYSE American: AZTR) (“Company”), a clinical-stage biopharmaceutical company focused on developing innovative therapies for precision dermatology, today announced the pricing of a public offering of an aggregate of 6,665,000 shares of its common stock, and Class A warrants to purchase up to 13,330,000 shares of common stock, at a combined public offering price of $1.50 per share and accompanying warrants. The Class A warrant will have an initial exercise price of $1.50 per share, will be exercisable immediately upon issuance, and will expire on the fifth anniversary of the original issuance date. The closing of the offering is expected to occur on or about July 25, 2024, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as the exclusive placement agent for the offering.

The gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, are expected to be approximately $10.0 million. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The securities described above are being offered pursuant to a registration statement on Form S-1, as amended (File No. 333-280806), which was declared effective by the Securities and Exchange Commission (the “SEC”) on July 23, 2024. The offering is being made only by means of a prospectus which forms a part of the effective registration statement. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at www.sec.gov and may also be obtained by contacting Maxim Group LLC at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Prospectus Department, or by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other 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. The Company's initial focus is on the development of genetically engineered strains of Staphylococcus epidermidis, or S. epidermidis, which the Company considers to be an optimal therapeutic candidate species for engineering of dermatologic therapies.

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 timing and completion of the offering and the anticipated use of proceeds therefrom. The offering is subject to customary closing conditions and there can be no assurance as to whether or when the offering may be completed.

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 prospectus dated July 19, 2024 filed with the SEC on July 19, 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/20240723047529/en/

Norman Staskey

Chief Financial Officer

staskey@azitra.com

Source: Azitra, Inc.

FAQ

What is the size and price of Azitra's (AZTR) public offering announced in July 2024?

Azitra (AZTR) announced a $10.0 million public offering, pricing 6,665,000 shares of common stock and warrants to purchase up to 13,330,000 shares at a combined price of $1.50 per share and accompanying warrants.

When is the expected closing date for Azitra's (AZTR) public offering?

The closing of Azitra's (AZTR) public offering is expected to occur on or about July 25, 2024, subject to customary closing conditions.

What are the terms of the warrants in Azitra's (AZTR) July 2024 public offering?

The Class A warrants in Azitra's (AZTR) offering have an initial exercise price of $1.50 per share, are immediately exercisable upon issuance, and will expire on the fifth anniversary of the original issuance date.

How does Azitra (AZTR) intend to use the proceeds from its July 2024 public offering?

Azitra (AZTR) intends to use the net proceeds from the public offering for working capital and general corporate purposes.