BioVie Inc. Announces Pricing of Public Offering

Rhea-AI Summary

BioVie Inc. (NASDAQ: BIVI), a clinical-stage company developing drug therapies for liver disease and neurological disorders, has announced the pricing of a public offering. The offering includes 1,960,800 shares of common stock (or pre-funded warrants) and warrants to purchase up to 1,960,800 shares at a combined price of $1.53 per share and associated warrant. The warrants have an exercise price of $1.53 and will be exercisable for five years upon issuance.

The company expects to raise approximately $3,000,000 in gross proceeds, which will be used primarily for working capital and general corporate purposes. The offering is set to close on September 25, 2024, subject to customary closing conditions. ThinkEquity is acting as the sole placement agent for this best efforts public offering.

Positive

• Raising approximately $3,000,000 in gross proceeds
• Funds to be used for working capital and general corporate purposes
• Offering includes both common stock and warrants, providing flexibility for investors

Negative

• Potential dilution of existing shareholders' ownership
• Low offering price of $1.53 per share may indicate weak market demand
• Best efforts offering structure suggests uncertainty in fully raising the targeted amount

Insights

Financial Analyst

BioVie's public offering of $3 million through the sale of common stock and warrants is a significant move for a company with a market cap of only $17.3 million. This capital raise, while dilutive to existing shareholders, provides important funding for the company's operations and development pipeline.

The pricing at $1.53 per share represents a substantial discount to the current market price, which is typical for microcap biotech companies seeking to attract investors. The inclusion of warrants with an exercise price equal to the offering price could provide additional future funding if the stock price appreciates.

However, the small size of the offering relative to the company's market cap suggests BioVie may need additional financing in the near future. Investors should closely monitor the company's cash burn rate and clinical progress to assess the likelihood of future dilution.

Overall, while the funding is necessary for BioVie's continued operations, the terms of the offering and the company's small size indicate significant risks for investors. The market's reaction to this news will be important in determining short-term price movements.

Biotech Industry Specialist

BioVie's focus on liver disease and neurological disorders places it in a highly competitive and capital-intensive sector of biotech. The $3 million raised, while helpful, is relatively modest for advancing clinical-stage programs in these areas.

The company's ability to secure this funding in a challenging market for small-cap biotechs is noteworthy. However, the terms of the offering, including the warrant coverage, suggest investor caution. The five-year exercise period for the warrants could create ongoing selling pressure if the stock price appreciates.

Investors should closely monitor BioVie's upcoming milestones and clinical trial results. The success or failure of its lead candidates will be critical in determining whether this funding round was a stepping stone to success or merely a stopgap measure. The use of proceeds for "working capital and general corporate purposes" is vague and may not inspire confidence in near-term catalysts.

This offering underscores the ongoing challenges faced by early-stage biotech companies in securing funding and advancing their pipelines. BioVie will need to demonstrate significant progress to justify its valuation and attract further investment.

CARSON CITY, Nev., Sept. 23, 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 pricing of a best efforts public offering of 1,960,800 shares of its common stock (or pre-funded warrants (“Pre-funded Warrants”) in lieu thereof) and warrants to purchase up to 1,960,800 shares of common stock at a combined offering price of $1.53 per share (or Pre-funded Warrant) and associated warrant. The warrants will have an exercise price of $1.53 per share and will be immediately exercisable upon issuance for a period of five years following the date of issuance. The gross proceeds to the Company from the offering are expected to be approximately $3,000,000, 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. All of the shares of common stock (or Pre-funded Warrants) and associated warrants are being offered by the Company. The offering is expected to close on September 25, 2024, subject to satisfaction of customary closing conditions.

ThinkEquity is acting as sole placement agent for the offering.

The securities were offered and will be 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. The offering will be made only by means of a written prospectus. A final prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC and will be 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 and advanced liver disease. In neurodegenerative disease, the Company’s drug candidate NE3107 inhibits inflammatory activation of ERK and NFkB (e.g., TNF signaling) that leads to neuroinflammation and insulin resistance, but not their homeostatic functions (e.g., insulin signaling and neuron growth and survival). Both are drivers of Alzheimer’s and Parkinson’s diseases. The Company conducted and reported efficacy data on its randomized, double-blind, placebo-controlled, parallel-group, multicenter study to evaluate NE3107 in patients who have mild to moderate Alzheimer's disease (NCT04669028). Results of a Phase 2 investigator-initiated trial (NCT05227820) showing NE3107-treated patients experienced improved cognition and biomarker levels were presented at the Clinical Trial in Alzheimer’s Disease annual conference in December 2022. An estimated six million Americans suffer from Alzheimer’s. A Phase 2 study of NE3107 in Parkinson’s disease (NCT05083260) has completed, and data presented at the International Conference on Alzheimer's and Parkinson's Disease and Related Neurological Disorders conference in Gothenburg, Sweden in March 2023 showed significant improvements in “morning on” symptoms and clinically meaningful improvement in motor control in patients treated with a combination of NE3107 and levodopa vs. patients treated with levodopa alone, and no drug-related adverse events. In liver disease, the Company’s Orphan drug candidate BIV201 (continuous infusion terlipressin), with U.S Food and Drug Administration (“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 treatment of ascites due to chronic liver cirrhosis. 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 http://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

What is the pricing of BioVie's (BIVI) public offering announced on September 23, 2024?

BioVie (BIVI) announced a public offering priced at $1.53 per share of common stock (or pre-funded warrant) and associated warrant to purchase additional shares.

How many shares and warrants are included in BioVie's (BIVI) September 2024 public offering?

The offering includes 1,960,800 shares of common stock (or pre-funded warrants) and warrants to purchase up to 1,960,800 additional shares of common stock.

What is the expected gross proceeds from BioVie's (BIVI) September 2024 public offering?

BioVie (BIVI) expects to raise approximately $3,000,000 in gross proceeds from the public offering announced on September 23, 2024.

When is the closing date for BioVie's (BIVI) September 2024 public offering?

The public offering is expected to close on September 25, 2024, subject to satisfaction of customary closing conditions.

What will BioVie (BIVI) use the proceeds from the September 2024 public offering for?

BioVie (BIVI) intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.