BullFrog AI Announces Underwriter’s Decision to Exercise Over-Allotment Option to Purchase 218,382 Shares of the Company’s Common Stock
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Insights
The exercise of an over-allotment option, often referred to as a 'green shoe' option, is a post-IPO mechanism allowing underwriters to buy additional shares from the company at the initial offering price. This typically occurs when there is strong investor demand and can provide additional capital to the company. In the case of BullFrog AI Holdings, Inc., the decision by underwriters to purchase an additional 218,382 shares indicates a positive reception from the market, which can be seen as a vote of confidence in the company's prospects.
From a financial perspective, this move is likely to increase the liquidity of BullFrog AI's shares in the market. For existing and potential shareholders, it could mean more stability in the stock price post-IPO due to the increased number of shares available for trading. However, it is also important to monitor for potential dilutive effects on earnings per share, as the increase in outstanding shares could spread the company's earnings more thinly among shareholders.
BullFrog AI operates in the burgeoning field of AI-driven drug development, which is becoming increasingly competitive as companies seek to leverage technology to streamline the drug discovery process. The fact that the underwriters have exercised their over-allotment option could be interpreted as a signal that the market sees BullFrog AI's technology and approach as promising within this sector.
An analysis of the company's market positioning should consider the competitive landscape, including the number of patents held, the pipeline of potential drugs and strategic partnerships. These factors can greatly influence the company's ability to capitalize on its technology and secure a significant market share. Additionally, the successful capital raise through the exercised option could enable BullFrog AI to accelerate its research and development efforts or expand its operations, potentially leading to new breakthroughs or collaborations that could further enhance its market position.
In the context of biotechnology and pharmaceuticals, compliance with the Securities and Exchange Commission (SEC) regulations is paramount. BullFrog AI's adherence to the necessary legal procedures, including the filing of a registration statement on Form S-1 that became effective, ensures that the offering meets the regulatory requirements. This legal compliance mitigates the risk of future litigation or sanctions that could arise from non-compliance and can be a reassuring factor for investors.
It is also noteworthy that the offering is limited by jurisdiction, avoiding any potential legal issues that could arise from offering securities in states or countries where it would be unlawful without proper registration or qualification. This careful approach to compliance can be indicative of the company's overall risk management strategies, which is an important consideration for investors who are often concerned with both financial and legal risks associated with their investments.
GAITHERSBURG, Md., Feb. 21, 2024 (GLOBE NEWSWIRE) -- BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW) (“BullFrog AI” or the “Company”), a technology-enabled drug development company using artificial intelligence (AI) and machine learning to enable the successful development of pharmaceuticals and biologics, announced February 21, 2024, the Underwriter’s decision to exercise their over-allotment option to purchase 218,382 shares of the Company’s common stock (the “Option Shares”), pursuant to the Underwriting Agreement, dated January 31, 2024, by and between BullFrog AI Holdings, Inc. and WallachBeth Capital, LLC as representative of the Underwriters (the “Underwriting Agreement”).
A registration statement on Form S-1 (File No. 333-276740) relating to the securities was filed with the Securities and Exchange Commission (“SEC”) and became effective on January 31, 2024. This offering was made only by means of a prospectus. Copies of the final prospectus related to the offering may be obtained, when available, from WallachBeth Capital, LLC, via email: cap-mkts@wallachbeth.com, or by calling +1 (646) 237-8585, or by standard mail at WallachBeth Capital, LLC, Attn: Capital Markets, 185 Hudson St, Jersey City, NJ 07311, USA. In addition, a copy of the final prospectus, when available, relating to the offering may be obtained via the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About BullFrog AI
BullFrog AI is a technology-enabled drug development company using Artificial Intelligence and machine learning to enable the successful development of pharmaceuticals and biologics. Through its collaborations with leading research institutions, BullFrog AI is at the forefront of AI-driven drug development using its proprietary bfLEAP™ artificial intelligence platform to create and analyze networks of biological, clinical, and real-world data spanning from early discovery to late-stage clinical trials. BullFrog AI is deploying bfLEAP™ for use at several critical stages of development with the intention of streamlining data analytics in therapeutics development, decreasing the overall development costs by decreasing failure rates for new therapeutics.
For more information visit BullFrog AI at:
Website: www.bullfrogai.com
LinkedIn: https://www.linkedin.com/company/bullfrogai/
Safe Harbor Statement
This press release contains forward-looking statements. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.
Contact:
Dave Gentry
RedChip Companies, Inc.
BFRG@redchip.com
800-733-2447
SOURCE: BullFrog AI Holdings, Inc.
FAQ
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