Azitra, Inc. Announces Pricing of Public Offering

Rhea-AI Summary

Azitra, Inc. (AZTR) announces the pricing of a public offering of 16,667,000 shares of common stock at $0.30 per share, generating approximately $5 million in gross proceeds. The Company plans to use the funds for clinical trials, product development, research, manufacturing, and general corporate purposes. The offering is expected to close on February 16, 2024.

Insights

Financial Analyst

The public offering of 16,667,000 shares at $0.30 each by Azitra represents a strategic move to raise capital, aiming for a gross proceeds target of approximately $5 million. The pricing of the offering at this level indicates a valuation decision that reflects both the current market conditions and the company's assessment of investor appetite for its equity. From a financial perspective, the offering's success will largely depend on the market's perception of Azitra's growth potential and the risk associated with its clinical-stage developments.

The option granted to underwriters to purchase an additional 2,500,000 shares to cover over-allotments is a common practice, known as a 'greenshoe' option, providing a mechanism to stabilize the stock price after the offering. This could be beneficial for both the company and investors if there is strong demand for the shares.

It's important to note that the intended use of the net proceeds for clinical trials, product development and other corporate purposes suggests a focus on advancing the company's pipeline, which could enhance its long-term value proposition. However, the dilutive effect of increasing the number of shares outstanding may impact current shareholders' value in the short term.

Market Research Analyst

Azitra's move to raise capital through a public offering is indicative of its strategic priorities in the precision dermatology space. The industry is witnessing significant growth, driven by technological advancements and an increasing demand for personalized medical treatments. The allocation of net proceeds towards clinical trials and product development is a clear indication of the company's commitment to innovation and could position Azitra as a competitive player in the market.

However, the pricing at $0.30 per share may suggest market skepticism regarding the company's current valuation or prospects. It is essential for investors to consider the company's product pipeline's stage, the competitive landscape and the historical performance of similar public offerings within the biopharmaceutical sector.

Understanding the broader market dynamics and how Azitra's offering fits within them can provide investors with a more comprehensive view of the potential risks and rewards associated with this investment.

Biopharmaceutical Industry Expert

In the context of the biopharmaceutical industry, Azitra's focus on precision dermatology places it within a niche yet growing field that leverages genetic and molecular information to tailor treatments. The decision to funnel capital into clinical trials is a critical step, as the success of these trials is often a make-or-break factor for biopharmaceutical companies. The outcome of these trials can significantly influence the company's stock performance and its ability to secure further funding or partnerships.

The timing of the offering and the market's response can also be influenced by regulatory factors, such as FDA approvals or setbacks, which are pivotal in the biopharmaceutical industry. Investors would benefit from understanding the regulatory landscape and the specific challenges and opportunities Azitra may face in bringing new treatments to market.

Moreover, the company's ability to manage clinical manufacturing and R&D effectively while maintaining adequate working capital will be crucial in determining its operational efficiency and long-term sustainability in a highly competitive and capital-intensive industry.

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 an underwritten public offering of 16,667,000 shares of common stock. Each share of common stock is being sold at a public offering price of $0.30 per share for gross proceeds of approximately $5 million, before deducting underwriting discounts and offering expenses. All of the shares of common stock are being offered 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.

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.

The offering is expected to close on February 16, 2024, subject to satisfaction of customary closing conditions.

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

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. This offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. The final prospectus will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov.

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 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 January 19, 2024 filed with the SEC on January 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/20240213312840/en/

Norman Staskey

Chief Financial Officer

staskey@azitra.com

Source: Azitra, Inc.

FAQ

What is the ticker symbol of Azitra, Inc. mentioned in the press release?

The ticker symbol of Azitra, Inc. is AZTR.

How many shares of common stock are being offered in the public offering?

Azitra, Inc. is offering 16,667,000 shares of common stock in the public offering.

At what price is each share of common stock being sold in the public offering?

Each share of common stock is being sold at a price of $0.30 in the public offering.

What is the expected gross proceeds from the public offering?

The public offering is expected to generate approximately $5 million in gross proceeds.

What are the intended uses of the net proceeds from the public offering?

The net proceeds from the public offering will be used for clinical trials, product development, research, manufacturing, working capital, and general corporate purposes.

Who is acting as the sole book-running manager for the offering?

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

When is the expected closing date of the public offering?

The public offering is expected to close on February 16, 2024, subject to customary closing conditions.

Where can copies of the final prospectus be obtained?

Copies of the final prospectus may be obtained from ThinkEquity in New York or on the SEC's website.