BioVie Inc. Announces Closing of Registered Direct Offering

Rhea-AI Summary

BioVie Inc (Nasdaq: BIVI) has completed its previously announced registered direct offering of 1,146,000 shares of common stock at $2.83 per share, raising gross proceeds of $3,243,180. The clinical-stage company, which develops drug therapies for liver disease and neurological disorders, plans to use the net proceeds for working capital and general corporate purposes. ThinkEquity served as the sole placement agent for the offering, which was conducted under a shelf registration statement filed with the SEC in August 2023.

Positive

• Secured $3.24 million in gross proceeds through stock offering
• Successfully completed at-market offering under Nasdaq rules
• Strengthened working capital position

Negative

• Dilution of existing shareholders' equity through new share issuance
• Stock offering priced at relatively low $2.83 per share

Insights

Financial Analyst

The $3.24M registered direct offering at $2.83 per share represents significant dilution for existing shareholders, with the offering price substantially below recent trading levels. For a micro-cap company with a market cap of just $23.6M, this financing, while providing needed working capital, comes at a considerable cost to shareholder value. The dilution impact is magnified by the relatively large size of the offering, representing approximately 13.7% of the company's market cap. The use of proceeds for "working capital and general corporate purposes" suggests immediate cash needs rather than strategic growth initiatives, which could indicate financial strain. The at-the-market pricing mechanism reflects current market conditions and institutional interest levels, though the pricing suggests negotiating leverage.

CARSON CITY, Nev., Oct. 29, 2024 (GLOBE NEWSWIRE) -- BioVie Inc. (Nasdaq: BIVI), (“BioVie” or the “Company”), a clinical-stage company developing innovative drug therapies to treat chronic debilitating conditions including liver disease and neurological and neuro-degenerative disorders, today announced the closing of its previously announced registered direct offering of 1,146,000 shares of its common stock priced at-the-market under Nasdaq rules at a price of $2.83 per share.

The gross proceeds to the Company from the offering are $3,243,180, before deducting placement agent fees and offering expenses. The Company intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.

ThinkEquity acted as sole placement agent for the offering.

The shares of common stock offered in the registered direct offering were offered and sold pursuant to a shelf registration statement on Form S-3 (File No. 333-274083), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 18, 2023 and declared effective on August 28, 2023. A final prospectus supplement and accompanying prospectus describing the terms of the offering was filed with the SEC and is available on its website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

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 BioVie Inc.

BioVie Inc. (NASDAQ: BIVI) is a clinical-stage company developing innovative drug therapies for the treatment of neurological and neurodegenerative disorders (Long COVID, Alzheimer's disease and Parkinson’s disease) and advanced liver disease. In neurodegenerative disease, the Company’s drug candidate bezisterim inhibits inflammatory activation of extracellular signal-regulated kinase and the transcription factor, Nuclear factor- kB, and the associated neuroinflammation and insulin resistance but not ERK and NFkB homeostatic functions (e.g., insulin signaling and neuron growth and survival). Both neuroinflammation and insulin resistance are drivers of AD and PD. Persistent systematic inflammation and neuroinflammation are key features in patients with neurological symptoms of Long COVID. In liver disease, the Company’s Orphan drug candidate BIV201 (continuous infusion terlipressin), with FDA Fast Track status, is being evaluated and discussed with guidance received from the FDA regarding the design of Phase 3 clinical testing of BIV201 for the reduction of further decompensation in participants with liver cirrhosis and ascites. The active agent is approved in the U.S. and in about 40 countries for related complications of advanced liver cirrhosis. For more information, visit www.bioviepharma.com. 

Forward-Looking Statements

This press release contains forward-looking statements, which may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Although BioVie Inc. believes such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Actual results may vary materially from those expressed or implied by the statements herein due to the Company's ability to successfully raise sufficient capital on reasonable terms or at all, available cash on hand and contractual and statutory limitations that could impair our ability to pay future dividends, our ability to complete our pre-clinical or clinical studies and to obtain approval for our product candidates, our ability to successfully defend potential future litigation, changes in local or national economic conditions as well as various additional risks, many of which are now unknown and generally out of the Company's control, and which are detailed from time to time in reports filed by the Company with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. BioVie Inc. does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law.

For Investor Relations Inquiries:
   Bruce Mackle
   Managing Director, LifeSci Advisors, LLC
   bmackle@lifesciadvisors.com

For Media Relations Inquiries:
   Melyssa Weible
   Managing Partner, Elixir Health Public Relations
   mweible@elixirhealthpr.com

FAQ

How much did BioVie (BIVI) raise in its October 2024 registered direct offering?

BioVie raised gross proceeds of $3,243,180 through the offering of 1,146,000 shares at $2.83 per share.

What is the purpose of BioVie's (BIVI) October 2024 stock offering?

BioVie intends to use the net proceeds primarily for working capital and general corporate purposes.

Who was the placement agent for BioVie's (BIVI) 2024 registered direct offering?

ThinkEquity acted as the sole placement agent for the offering.

What was the share price for BioVie's (BIVI) October 2024 offering?

The shares were priced at $2.83 per share, at-the-market under Nasdaq rules.