Eyenovia Announces Pricing of $5.14 Million Public Offering

Rhea-AI Summary

Eyenovia (NASDAQ: EYEN), a commercial-stage ophthalmic company, has announced the pricing of a $5.14 million public offering. The company will sell 12,850,000 shares of common stock at $0.40 per share, with the closing expected on August 22, 2024. Dawson James Securities, Inc. is acting as the placement agent. Eyenovia plans to use the net proceeds to fund commercialization activities for Mydcombi and clobetasol propionate, complete the CHAPERONE pediatric myopia clinical study, and for working capital and general corporate purposes, including potential repayment of existing debt. The offering is made pursuant to Eyenovia's previously filed shelf registration statement on Form S-3.

Positive

• Raised $5.14 million in gross proceeds through public offering
• Funds to be used for commercialization of Mydcombi and clobetasol propionate
• Proceeds will support completion of CHAPERONE pediatric myopia clinical study
• Potential debt repayment, improving financial position

Negative

• Significant dilution with 12,850,000 new shares issued
• Low share price of $0.40 indicates potential financial distress
• Existing indebtedness suggests financial challenges

Insights

Financial Analyst

Eyenovia's $5.14 million public offering at $0.40 per share represents a significant dilution for existing shareholders, given the company's previous closing price. This 68.75% discount to the 30-day VWAP signals potential market skepticism about the company's near-term prospects. The offering's size relative to Eyenovia's market cap suggests urgent capital needs, likely driven by commercialization costs and ongoing clinical studies.

While the funding provides a short-term cash infusion, it may not be sufficient for long-term operations. Investors should closely monitor the company's burn rate and progress in commercializing Mydcombi and clobetasol propionate. The mention of debt repayment indicates financial strain, which could impact future growth initiatives.

Medical Research Analyst

The allocation of funds towards completing the CHAPERONE pediatric myopia clinical study is a positive signal for Eyenovia's pipeline development. Myopia is a growing concern globally and successful results could position the company favorably in this market. However, the funds raised may constrain the study's scope or timeline.

Investors should watch for updates on the CHAPERONE study progress and any preliminary data releases. The commercialization of Mydcombi and clobetasol propionate will be important for near-term revenue generation. The success of these products in the market could significantly impact the company's financial health and reduce reliance on dilutive financing in the future.

Market Research Analyst

The ophthalmic market is competitive and Eyenovia's ability to successfully commercialize its products will be critical for investor confidence. The low offering price suggests market skepticism, which could hinder future capital raises if not addressed through strong commercial execution.

Investors should monitor key performance indicators such as prescription growth, market penetration and reimbursement status for Mydcombi and clobetasol propionate. The company's ability to leverage its proprietary Optejet® dispenser could be a differentiator, but it needs to translate into tangible market success. Watch for partnerships, distribution agreements, or licensing deals that could enhance Eyenovia's market position and validate its technology platform.

NEW YORK, Aug. 21, 2024 (GLOBE NEWSWIRE) -- Eyenovia, Inc. (“Eyenovia” or the “Company”) (NASDAQ: EYEN), a commercial-stage ophthalmic company, announced today that it has agreed to sell 12,850,000 shares of common stock at a price per share of $0.40 (the "Offering").

The closing of the Offering is expected to occur on or about August 22, 2024, subject to the satisfaction of customary closing conditions. All of the securities in the Offering are being sold by Eyenovia. Dawson James Securities, Inc. is acting as the placement agent for the Offering.
The gross proceeds to Eyenovia from this Offering are expected to be approximately $5.14 million, before deducting the placement agent’s fees and other offering expenses payable by Eyenovia. Eyenovia intends to use the net proceeds from this Offering to fund commercialization activities for Mydcombi and clobetasol propionate, complete the CHAPERONE pediatric myopia clinical study, and for working capital and general corporate purposes, which may include the repayment of a portion of existing indebtedness.

The securities described above are being offered by Eyenovia pursuant to its previously filed shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (the “SEC”) on December 23, 2021. The Offering may be made only by means of a prospectus supplement and accompanying prospectus. A prospectus supplement relating to the Offering will be filed with the SEC and, once filed, will be available on the SEC’s website at www.sec.gov. When available, copies of the prospectus supplement and the accompanying base prospectus relating to the Offering may also be obtained by contacting Dawson James Securities, Inc.,101 North Federal Highway, Suite 600, Boca Raton, FL 33432 or by telephone at (561) 391-5555, or by email at investmentbanking@dawsonjames.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or 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 jurisdiction.

About Eyenovia, Inc.
Eyenovia, Inc. is an ophthalmic technology company commercializing Mydcombi™ (tropicamide and phenylephrine hydrochloride ophthalmic spray) 1%/2.5% for mydriasis, Clobetasol Propionate Ophthalmic Suspension, 0.05% for postsurgical inflammation and pain, and developing the Optejet® device for use both in connection with its own drug-device therapeutic product for pediatric progressive myopia as well as out-licensing for additional indications. For more information, please visit Eyenovia.com.

Forward Looking Statements

Except for historical information, all the statements, expectations and assumptions contained in this press release are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions, including those relating to the Offering, the closing of the Offering, the amount and anticipated use of proceeds from the Offering, estimated market opportunities for our product candidates and platform technology, the timing for sales growth of our approved products, and the outcome of the process to explore strategic alternatives to maximize shareholder value. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and in some cases are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in documents which we file with the U.S. Securities and Exchange Commission.

In addition, such statements could be affected by risks and uncertainties related to, among other things: risks of our clinical trials, including, but not limited to, the costs, design, initiation and enrollment, timing, progress and results of such trials; the timing of, and our ability to submit applications for, obtaining and maintaining regulatory approvals for our products and product candidates; the potential advantages of our products, product candidates and platform technology; the rate and degree of market acceptance and clinical utility of our products and product candidates; our estimates regarding the potential market opportunity for our products and product candidates; reliance on third parties to develop and commercialize our products and product candidates; the ability of us and our partners to timely develop, implement and maintain manufacturing, commercialization and marketing capabilities and strategies for our products and product candidates; intellectual property risks; changes in legal, regulatory, legislative and geopolitical environments in the markets in which we operate and the impact of these changes on our ability to obtain regulatory approval for our products and product candidates; and our competitive position.

Any forward-looking statements speak only as of the date on which they are made, and except as may be required under applicable securities laws, Eyenovia does not undertake any obligation to update any forward-looking statements.

Eyenovia Contact:
Eyenovia, Inc.
John Gandolfo
Chief Financial Officer
jgandolfo@eyenovia.com

Eyenovia Investor Contact:
Eric Ribner
LifeSci Advisors, LLC
eric@lifesciadvisors.com
(646) 751-4363

Eyenovia Media Contact:
Eyenovia, Inc.
Norbert Lowe
Vice President, Commercial Operations
nlowe@eyenovia.com

FAQ

How much did Eyenovia raise in its recent public offering?

Eyenovia raised $5.14 million in gross proceeds through its public offering of 12,850,000 shares of common stock priced at $0.40 per share.

What will Eyenovia use the proceeds from the offering for?

Eyenovia plans to use the net proceeds to fund commercialization activities for Mydcombi and clobetasol propionate, complete the CHAPERONE pediatric myopia clinical study, and for working capital and general corporate purposes, including potential debt repayment.

When is the closing date for Eyenovia's public offering?

The closing of Eyenovia's public offering is expected to occur on or about August 22, 2024, subject to the satisfaction of customary closing conditions.

Who is the placement agent for Eyenovia's public offering?

Dawson James Securities, Inc. is acting as the placement agent for Eyenovia's public offering.