BioVie Inc. Announces Pricing of Registered Direct Offering Priced At-the-Market Under Nasdaq Rules

Rhea-AI Summary

BioVie Inc (NASDAQ: BIVI) announced the pricing of a registered direct offering of 1,146,000 shares of common stock at $2.83 per share, aiming to raise approximately $3.2 million in gross proceeds. The offering, priced at-the-market under Nasdaq rules, is expected to close around October 29, 2024. The company plans to use the net proceeds for working capital and general corporate purposes. ThinkEquity is serving as the sole placement agent for the offering, which is being conducted under a shelf registration statement previously filed with the SEC.

Positive

• Secured $3.2 million in additional funding through share offering
• Successfully executed at-market pricing under Nasdaq rules
• Strengthening working capital position

Negative

• Potential dilution of existing shareholders' value
• Share offering priced at market rate indicates premium
• Additional capital raise suggests cash burn concerns

Insights

Financial Analyst

This registered direct offering represents significant dilution for existing shareholders, with 1,146,000 new shares being issued at $2.83 per share - a price notably below recent trading levels. The gross proceeds of $3.2 million will provide some working capital runway, but given BIVI's small market cap of $22.7 million, this represents substantial dilution of approximately 14% of the current market cap.

The at-the-market pricing mechanism typically indicates weak demand, as shares are being sold at prevailing market prices rather than at a premium. While the additional capital will help fund operations, the dilutive impact and pricing suggest challenging market conditions for raising capital. The company's ability to secure only $3.2 million despite having an active shelf registration for more raises questions about investor confidence and future financing needs.

CARSON CITY, Nev., Oct. 28, 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 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, resulting in total gross proceeds of approximately $3.2 million, before deducting the placement agent's 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 and associated warrants are being offered by the Company.

The registered direct offering and concurrent private placement are expected to close on or about October 29, 2024, subject to the 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, 41st 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 money is BioVie (BIVI) raising in its October 2024 offering?

BioVie is raising approximately $3.2 million in gross proceeds through a registered direct offering of 1,146,000 shares priced at $2.83 per share.

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

The offering is priced at $2.83 per share, at-the-market under Nasdaq rules.

When will BioVie's (BIVI) registered direct offering close?

The offering is expected to close on or about October 29, 2024, subject to customary closing conditions.

How will BioVie (BIVI) use the proceeds from its October 2024 offering?

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