Bone Biologics Announces Pricing of $2.0 Million Public Offering

Rhea-AI Summary

Bone Biologics Corporation (BBLG) announces the pricing of a public offering of 781,251 shares of common stock and warrants at $2.56 per share, aiming to raise capital for its orthobiologic products in spine fusion markets.

Insights

Financial Analyst

Bone Biologics Corporation's recent public offering represents a significant event that could influence its financial trajectory and thus impact investor sentiment. Pricing the offering at $2.56 per share, below the exercise price of the warrants at $2.43, indicates a potential discount strategy to entice investment and raise capital swiftly. This capital infusion is pivotal for the company's growth, particularly in research and development (R&D) within the orthobiologic products space, a sector known for high entry costs due to stringent regulatory requirements and the need for continuous innovation.

Investors should note that the immediate exercisability of the warrants provides an opportunity for early investment returns, albeit with the risk of diluting the stock's value if a large volume of warrants is exercised. The five-year expiration period offers a long-term investment horizon, aligning with the typically extended R&D cycles in the biotech industry. The closing of the offering will be a critical moment to monitor, as it will determine the actual capital raised and its immediate impact on the company's liquidity and debt-to-equity ratio.

Market Research Analyst

The orthobiologic products market is experiencing rapid growth due to technological advancements and an aging population that is increasingly in need of spine fusion surgeries. Bone Biologics' entry into this market with a public offering could signal its readiness to scale operations and solidify its market position. By analyzing market trends, one can infer that the capital raised could be allocated towards capturing more market share, either through aggressive marketing campaigns or through further development of their product pipeline to meet specific unmet needs in spine fusion.

Long-term market implications depend on the company's ability to leverage this capital to create a competitive edge. Success in clinical trials and subsequent FDA approvals would be necessary milestones to watch, as they would significantly enhance the company's valuation and credibility in a market that is sensitive to regulatory endorsements.

Medical Research Analyst

From a medical research perspective, the funds raised by Bone Biologics could accelerate the development of their orthobiologic products, which are crucial in spine fusion surgeries. These products aim to facilitate bone growth and healing, which is critical for patients undergoing these procedures. The investment into R&D could potentially lead to breakthroughs in biomaterials and offer improved outcomes for patients. However, the success of these products depends on rigorous clinical testing to ensure efficacy and safety.

It's also essential to consider the competitive landscape. The orthobiologic sector is crowded with established players and emerging biotechs. Bone Biologics will need to differentiate its products not only through clinical outcomes but also by navigating through the complex regulatory pathways that govern medical product approvals. The timing of the offering is strategic, as it allows the company to potentially capitalize on the current demand for innovative medical solutions in the orthopedic space.

BURLINGTON, Mass.--(BUSINESS WIRE)-- Bone Biologics Corporation (“Bone Biologics” or the “Company”) (Nasdaq: BBLG, BBLGW), a developer of orthobiologic products for spine fusion markets, today announced the pricing of its public offering of an aggregate of 781,251 shares of its common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to 781,251 shares of common stock, at a public offering price of $2.56 per share (or common stock equivalent in lieu thereof) and accompanying warrant. The warrants will have an exercise price of $2.43 per share, will be exercisable immediately upon issuance and will expire five years after the date of issuance. The closing of the offering is expected to occur on or about March 6, 2024, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

Total gross proceeds to the Company from the offering, before deducting the placement agent’s fees and other offering expenses, are expected to be approximately $2.0 million. The Company intends to use the net proceeds from this offering to fund clinical trials, maintain and extend its patent portfolio, and for working capital and other general corporate purposes.

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-276771), which was declared effective by the Securities and Exchange Commission (the “SEC”) on March 4, 2024. The offering is being made only by means of a prospectus forming part of the effective registration statement relating to the offering. A preliminary prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at http://www.sec.gov. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained, when available, by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.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 Bone Biologics

Bone Biologics was founded to pursue regenerative medicine for bone. The Company is undertaking work with select strategic partners that builds on the preclinical research of the Nell-1 protein. Bone Biologics is focusing development efforts for its bone graft substitute product on bone regeneration in spinal fusion procedures, while additionally having rights to trauma and osteoporosis applications.

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 forward-looking statements include all statements, other than statements of historical fact, regarding the Company’s current views and assumptions with respect to future events regarding its business, including statements with respect to its plans, assumptions, expectations, beliefs and objectives with respect to the completion of the offering, the satisfaction of customary closing conditions related to the offering, the intended use of proceeds from the offering, product development, clinical studies, clinical and regulatory timelines, market opportunity, competitive position, business strategies, potential growth opportunities, market and other conditions and other statements that are predictive in nature.

These statements are generally identified by the use of such words as “may,” “would,” “expect,” “intend,” “plan,” “will,” “potential” and similar statements of a future or forward-looking nature. Readers are cautioned that any forward-looking information provided by the Company or on its behalf is not a guarantee of future performance. Actual results may differ materially from those contained in these forward-looking statements as a result of various factors disclosed in filings with the SEC, including the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed with the SEC on February 21, 2024 and the preliminary prospectus filed with the SEC in connection with the public offering. All forward-looking statements speak only as of the date on which they are made, and the Company undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240304119263/en/

LHA Investor Relations

Kim Sutton Golodetz

212-838-3777

kgolodetz@lhai.com

Source: Bone Biologics Corporation

FAQ

What did Bone Biologics announce regarding a public offering?

Bone Biologics announced the pricing of a public offering of 781,251 shares of common stock and warrants at $2.56 per share.

How many shares are included in the public offering by Bone Biologics?

The public offering includes an aggregate of 781,251 shares of common stock.

What is the exercise price of the warrants offered by Bone Biologics?

The warrants offered by Bone Biologics have an exercise price of $2.43 per share.

When will the warrants issued by Bone Biologics expire?

The warrants issued by Bone Biologics will expire five years after the date of issuance.

What is the expected closing date for Bone Biologics' offering?

The closing of the offering by Bone Biologics is expected to occur on or