Bluejay Diagnostics Announces Pricing of $8.75 Million Underwritten Public Offering

Rhea-AI Summary

Bluejay Diagnostics (NASDAQ: BJDX) announced the pricing of an $8.75 million underwritten public offering. The offering includes 5,368,098 Common Units or Prefunded Units, each with one share of common stock or one pre-funded warrant and three types of warrants for additional stock purchases. The company set the purchase price for Common Units at $1.63 and Prefunded Units at $1.6299. Proceeds will be used to repay $2.3 million of outstanding debt, fund FDA approval-related activities, and support R&D and working capital. The offering is expected to close on June 28, 2024, with Aegis Capital Corp. as the underwriter.

Positive

• Secured $8.75 million in gross proceeds.
• Proceeds to repay $2.3 million in outstanding debt.
• Funds to support FDA approval-related activities and R&D.

Negative

• Potential shareholder dilution due to the issuance of new shares and warrants.

Insights

Financial Analyst

Bluejay Diagnostics has announced a public offering that will generate $8.75 million in gross proceeds. For investors, this move is significant as it can impact the company’s stock valuation and future financial stability. Firstly, the dilution of shares due to the issuance of new shares is a common concern. This offering includes Common Units and Prefunded Units, each comprising shares and various types of warrants. The immediate consequences might be a drop in share price given the increased supply. However, the company’s strategic use of the proceeds—including repaying $2.3 million in debt and funding FDA approval processes—could have long-term benefits. Reducing debt decreases financial risk and successful FDA approvals can significantly boost revenue potential.

In the short term, investors might observe volatility in Bluejay's stock price. The offering also includes mechanisms like Class C and Class D Warrants, which are subject to shareholder approval and adjustable terms. These instruments could provide future capital influxes but also add complexity to the stock’s value. Overall, while the immediate effects might be mixed, the strategic allocation of funds focuses on enhancing product development and reducing liabilities, indicating a potentially favorable outlook in the long term, provided they achieve the FDA approvals.

Market Research Analyst

Evaluating Bluejay Diagnostics' public offering from a market perspective, the infusion of $8.75 million positions the company to better compete within the medical diagnostics sector. Securing funds to advance the Symphony platform and pursue FDA clearance for the IL-6 Test for sepsis could enhance their market penetration. The rapid diagnostics market is growing, driven by an increasing demand for quick and reliable patient outcomes. Bluejay’s focus on sepsis monitoring, which is a critical care priority, potentially places them at an advantageous position within this expanding market.

However, investor scrutiny will be high on how effectively Bluejay utilizes these funds. The immediate repayment of debt indicates a prioritization of financial health, which is a positive sign. The long-term success hinges on achieving FDA approval, which, if successful, could open new revenue streams and partnerships. The strategy to use funds for clinical studies and product development aligns with industry trends toward innovation and regulatory compliance. In summary, while the execution risks remain, the market potential and strategic focus present a promising outlook for Bluejay Diagnostics.

ACTON, Mass., June 27, 2024 (GLOBE NEWSWIRE) -- Bluejay Diagnostics, Inc. (NASDAQ: BJDX) (“Bluejay” or the “Company”), a medical technology company developing rapid diagnostics on its Symphony platform to improve patient outcomes in critical care settings, today announced the pricing of a firm commitment underwritten public offering with gross proceeds to the Company expected to be approximately $8.75 million, before deducting underwriting discounts and other estimated expenses payable by the Company. The base offering consists of 5,368,098 Common Units or Prefunded Units, each Unit consisting of one share of the Company’s common stock (“Common Stock”) or one pre-funded warrant to purchase one share of Common Stock (each, a “Prefunded Warrant”), two Class C warrants each to purchase one share of our common stock (each, a “Class C Warrant”) and one Class D Warrant to purchase such number of shares of common stock as determined in the Class D Warrant (each, a “Class D Warrant” and together with the Class C Warrants, the “Common Warrants”). The purchase price of each Common Unit was $1.63, and the purchase price of each Prefunded Unit is $1.6299 (which is equal to the public offering price per Common Unit minus $0.0001). The Prefunded Warrants will be immediately exercisable and may be exercised at any time until all the Prefunded Warrants are exercised in full.

The Class C Warrants, which will not be exercisable until approval by the Company’s stockholders, will have an initial exercise price of $1.96 per share, and will expire five (5) years from the date of such stockholder approval. Each Class D Warrant will be exercisable immediately. The exercise price and number of shares of Common Stock issuable under the Class D Warrants are subject to adjustment as described in the Class D Warrant. The Company intends to use the net proceeds from the offering to (i) repay $2.3 million in outstanding debt that will be due and payable upon consummation of the offering and (ii) fund matters related to obtaining FDA approval (including clinical studies related thereto), as well as for other research and development activities, and for general working capital needs.

In addition, the Company has granted Aegis Capital Corp. a 45-day option to purchase additional shares of Common Stock and/or Common Warrants, representing up to 15% of the number of securities sold in the offering, solely to cover over-allotments, if any.

The closing of the offering is expected to occur on June 28, 2024, subject to the satisfaction of customary closing conditions.

Aegis Capital Corp. acted as the underwriter for the offering. Hogan Lovells US LLP acted as counsel to the Company for the offering. Kaufman & Canoles, P.C. served as counsel to Aegis Capital Corp. for the offering.

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-280253) originally filed with the Securities and Exchange Commission (“SEC”) on June 17, 2024, as amended, and which registration statement became effective on June 26, 2024. The offering is being made only by means of a prospectus, which forms a part of the effective registration statement. When available, electronic copies of the final prospectus may be obtained for free on the SEC's website located at http://www.sec.gov and may also be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010. Before investing in this offering, interested parties should read in their entirety the registration statement and the preliminary prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such registration statement and the preliminary prospectus, which provide more information about the Company and the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Bluejay Diagnostics:

Bluejay Diagnostics, Inc. is a medical diagnostics company focused on improving patient outcomes using its Symphony System, a cost-effective, rapid, near-patient testing system for sepsis triage and monitoring of disease progression. Bluejay’s first product candidate, an IL-6 Test for sepsis, is designed to provide accurate, reliable results in approximately 20 minutes from ‘sample-to-result’ to help medical professionals make earlier and better triage/treatment decisions. More information is available at www.bluejaydx.com.

Forward-Looking Statements:

This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Litigation Reform Act. Forward-looking statements in this press release include, without limitation, statements pertaining to the completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of proceeds from the offering. Forward-looking statements may be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “suggest”, “will,” and similar expressions. The Company has based these forward-looking statements on its 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 the Company makes. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including market and other conditions and those discussed under item 1A. “Risk Factors” in our most recently filed Form 10-K filed with the Securities and Exchange Commission, as updated by the Company’s subsequent Quarterly Reports on Form 10-Q. You should not place undue reliance on these forward-looking statements, as they are subject to risks and uncertainties, and actual results and performance in future periods may not occur or may be materially different from any future results or performance suggested by the forward-looking statements in this release. This press release speaks as of the date indicated above. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. The Company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any future changes in the Company’s expectations of results or any future change in events, except as required by law.

Investor Contact:
Neil Dey
Bluejay Diagnostics, Inc.
neil.dey@bluejaydx.com
978-631-0310

Website: www.bluejaydx.com

FAQ

What is the size of Bluejay Diagnostics' latest public offering?

The size of Bluejay Diagnostics' latest public offering is $8.75 million.

When is the expected closing date for Bluejay Diagnostics' public offering?

The expected closing date for Bluejay Diagnostics' public offering is June 28, 2024.

What is the purpose of the funds raised in Bluejay Diagnostics' public offering?

The funds raised will be used to repay $2.3 million in outstanding debt, support FDA approval-related activities, and fund research and development.

What is the purchase price for the Common Units in Bluejay Diagnostics' offering?

The purchase price for the Common Units in Bluejay Diagnostics' offering is $1.63.

What impact might Bluejay Diagnostics' public offering have on current shareholders?

The public offering may lead to shareholder dilution due to the issuance of new shares and warrants.