Bullfrog AI Announces Pricing of $5.7 Million Public Offering
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Insights
The recent public offering announcement by BullFrog AI Holdings, Inc. is a strategic move to secure additional capital, indicative of the company's growth trajectory and future investment in its AI-driven drug development initiatives. The pricing of shares at $3.782, with an aim to raise approximately $5.7 million, reflects the company's valuation and investor appetite for innovative biotech ventures. The underwriters' option for over-allotment also suggests a potential for higher capital raise, which could provide Bullfrog AI with a more robust financial buffer.
However, investors should consider the dilutive effect of such offerings on existing shareholders. The introduction of additional shares into the market can depress the stock price in the short term. On the other hand, if the capital is deployed efficiently towards accelerating drug development pipelines or expanding AI capabilities, it could lead to long-term value creation.
It is also important to note the role of WallachBeth Capital, LLC as the sole book-running manager, which may influence the offering's success through its network and expertise in capital markets. The effectiveness of the registration statement on Form S-1 with the SEC adds a layer of regulatory compliance and transparency to the process, potentially increasing investor confidence.
In the context of the biotechnology sector, BullFrog AI's public offering can be seen as a move to capitalize on the growing interest in AI applications within drug discovery and development. The use of AI and machine learning has the potential to significantly reduce the time and cost associated with bringing new drugs to market, which is a key competitive advantage.
Market trends indicate an increasing number of biotech firms are seeking to integrate AI into their operations and BullFrog AI's fundraising efforts may position the company favorably among its peers. The intended use of proceeds for working capital and general corporate purposes is fairly standard, but it is the specific allocation towards enhancing AI capabilities that may determine the company's future market position.
Investors and industry observers will likely monitor the deployment of the raised funds and its impact on BullFrog AI's drug development pipeline. Successful advancement of their pharmaceuticals and biologics could lead to strategic partnerships, licensing deals, or even acquisition interest from larger pharmaceutical companies.
The legal framework surrounding public offerings in the biotech industry is complex, particularly due to the stringent regulations imposed by the SEC. BullFrog AI's adherence to the SEC's requirements, including the effective registration statement and the availability of a final prospectus, is crucial for the legality of the offering. Prospective investors rely on these documents for detailed information about the company's financial health, risks and strategic plans.
It is also worth noting that biotech companies like BullFrog AI face unique legal challenges related to intellectual property rights, especially when AI is involved in drug development. The protection of proprietary algorithms and data sets is essential for maintaining a competitive edge. The capital raised may support the company's efforts in securing and defending such intellectual property, which is often a significant concern for investors in this sector.
The disclaimer regarding the non-constitution of an offer to sell or solicit in states or jurisdictions where it would be unlawful ensures compliance with state securities laws, which vary and can affect the offering's accessibility to investors across different regions.
GAITHERSBURG, Md., Feb. 01, 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 today the pricing of an underwritten public offering of an aggregate of 1,507,139 shares of common stock (or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof) and accompanying warrants to purchase 1,507,139 shares of common stock at a public offering price of
The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes. The offering is expected to close on February 5, 2024, subject to satisfaction of customary closing conditions.
WallachBeth Capital, LLC is acting as sole book-running manager for the offering.
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 is being 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.
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