Biofrontera Inc. announces reduction of Biofrontera AG shareholding to less than 50% through warrant exercises

Rhea-AI Summary

Biofrontera Inc. (Nasdaq: BFRI) announced a significant milestone as Biofrontera AG's ownership in the company diluted below 50%, resulting in Biofrontera Inc. no longer being considered a subsidiary. Despite this, Biofrontera AG retains its role as the licensor for key dermatological products, including Ameluz® and BF-RhodoLED® lamps in the U.S. CEO Erica Monaco stated this transition marks Biofrontera Inc.'s progress towards independence from its former parent company.

Positive

• Biofrontera Inc. achieves independence from Biofrontera AG, enhancing market perception.
• Continued licensing agreement allows Biofrontera Inc. to market key dermatological products.

Negative

• Biofrontera AG's reduced ownership may lead to decreased influence and support for Biofrontera Inc.
• Concerns over the company's ability to operate successfully without its former parent.

WOBURN, Mass., Dec. 30, 2021 (GLOBE NEWSWIRE) -- Biofrontera Inc. (Nasdaq: BFRI), a biopharmaceutical company specializing in the commercialization of dermatological products, announced that through the exercise of outstanding warrants the majority ownership of Biofrontera AG was diluted below 50%. Biofrontera AG’s shareholding in Biofrontera Inc. of 8,000,000 shares is unchanged, but now represents approximately 47% of the currently outstanding shares. As a result, Biofrontera Inc. is no longer considered a subsidiary of Biofrontera AG. Biofrontera Inc.’s common stock and warrants are traded on the Nasdaq Capital Market under the ticker symbols “BFRI” and “BFRIW,” respectively.

Not affected by this will be Biofrontera AG’s position as Licensor for the license and supply agreement (LSA) with Biofrontera Inc, which provides the latter with the exclusive rights to market and sell Ameluz^® and the PDT-lamps BF-RhodoLED^® and RhodoLED XL in the United States.

Erica Monaco, CEO of Biofrontera Inc. states: “Reducing Biofrontera AG’s shareholding below 50% represents a major milestone in the development of Biofrontera Inc. towards a stand-alone entity that is independent of its former parent company.”

About Biofrontera Inc.

Biofrontera Inc. is a U.S.-based biopharmaceutical company commercializing a portfolio of pharmaceutical products for the treatment of dermatological conditions with a focus on photodynamic therapy (PDT) and topical antibiotics. The Company’s licensed products are used for the treatment of actinic keratoses, which are pre-cancerous skin lesions, as well as impetigo, a bacterial skin infection. For more information, visit www.biofrontera-us.com.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended to date. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. We have based these forward-looking statements on our current expectations and projections about future events, nevertheless, actual results or events could differ materially from the plans, intentions and expectations disclosed in, or implied by, the forward-looking statements we make. These risks and uncertainties, many of which are beyond our control, including, but not limited to, the impact of extraordinary external events, such as the current COVID-19 pandemic; any changes in the Company’s relationship with the Licensor; the outcome of the Company’s litigation with DUSA Pharmaceuticals, Inc., including the trial scheduled to begin at the end of November; the Company’s ability to achieve and sustain profitability; whether the current disruptions in the supply chain will impact the Company’s ability to obtain and distribute its licensed products; changes in the practices of healthcare providers, including any changes to the coverage, reimbursement and pricing for procedures using the Company’s licensed products; the uncertainties inherent in the initiation and conduct of clinical trials; availability and timing of data from clinical trials; whether results of early clinical trials or trials in different disease indications will be indicative of the results of ongoing or future trials; whether results of the studies described above will be indicative of results for any future clinical trials and studies of Ameluz^® in combination with BF-RhodoLED^®; uncertainties associated with regulatory review of clinical trials and applications for marketing approvals; whether the market opportunity for Ameluz^® in combination with BF-RhodoLED^® is consistent with the Company’s expectations; whether the Company will be able to successfully transition to a public company operating independently of Biofrontera AG; the Company’s ability to retain and hire key personnel; the sufficiency of cash resources and need for additional financing and other factors that may be disclosed in the Company’s filings with the SEC, which can be obtained on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management's current estimates, projections, expectations and beliefs. The company does not plan to update any such forward-looking statements and expressly disclaims any duty to update the information contained in this press release except as required by law.

Contacts

Biofrontera Inc.
Pamela Keck
+1 781 486 1539
us-ir@biofrontera.com

LHA Investor Relations
Tirth T. Patel
+1 212 201 6614
tpatel@lhai.com

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FAQ

What does it mean for Biofrontera (BFRI) that Biofrontera AG's ownership is below 50%?

This change means Biofrontera Inc. is no longer a subsidiary of Biofrontera AG, indicating greater independence.

What products does Biofrontera Inc. (BFRI) market under its licensing agreement?

Biofrontera Inc. holds exclusive rights to market Ameluz® and BF-RhodoLED® lamps in the U.S.

How will the dilution of ownership impact Biofrontera Inc. (BFRI) shareholders?

Shareholders may experience changes in corporate governance and market dynamics due to the loss of subsidiary status.

When did Biofrontera Inc. (BFRI) announce its independence from Biofrontera AG?

The announcement was made on December 30, 2021.

What is the current ownership percentage of Biofrontera AG in Biofrontera Inc. (BFRI)?

Biofrontera AG now holds approximately 47% of Biofrontera Inc.'s outstanding shares.