Eyenovia, Inc. Announces Pricing of $4 Million Registered Direct Offering

Rhea-AI Summary

Eyenovia, Inc. (NASDAQ: EYEN) has announced a $4 million registered direct offering of common stock and warrants. The company will sell 8,695,653 shares (or equivalents) and warrants to purchase up to 8,695,653 shares at a combined price of $0.46 per share and accompanying warrant. The warrants have an exercise price of $0.50 per share, will be exercisable after six months, and expire in five years. The offering is expected to close around September 30, 2024.

Eyenovia plans to use the net proceeds for commercialization activities for Mydcombi and clobetasol propionate, completing the CHAPERONE pediatric myopia clinical study, working capital, and general corporate purposes, including potential debt repayment. A.G.P./Alliance Global Partners is the lead placement agent, with Brookline Capital Markets as co-placement agent.

Positive

• Secured $4 million in funding through registered direct offering
• Proceeds to support commercialization of two FDA-approved products
• Funds allocated to complete CHAPERONE pediatric myopia clinical study
• Potential debt reduction from offering proceeds

Negative

• Dilution of existing shareholders due to new share issuance
• Offering price of $0.46 per share indicates low valuation
• Warrants may lead to further dilution if exercised in the future

Insights

Financial Analyst

Eyenovia's $4 million registered direct offering is a significant development, albeit with mixed implications. The offering price of $0.46 per share represents a substantial discount to the current market price, which could pressure the stock in the short term. However, this capital raise provides important funding for key initiatives:

• Commercialization of FDA-approved products Mydcombi and clobetasol propionate
• Completion of the CHAPERONE pediatric myopia clinical study
• Working capital and potential debt repayment

The inclusion of warrants with a $0.50 exercise price offers potential for additional future funding if exercised. While dilutive, this financing strengthens Eyenovia's balance sheet and supports its growth strategy. The company's focus on ophthalmic technology, particularly in pediatric progressive myopia, presents a significant market opportunity. Investors should monitor the progress of the CHAPERONE study and the commercial rollout of approved products as key value drivers.

Medical Research Analyst

Eyenovia's financing move is important for advancing its ophthalmic pipeline, particularly the CHAPERONE study for pediatric progressive myopia. This condition affects millions globally and lacks FDA-approved treatments, representing a substantial unmet medical need. The completion of this study could be a game-changer for Eyenovia if successful.

The company's two FDA-approved products, Mydcombi and clobetasol propionate, also warrant attention. Mydcombi, for mydriasis (pupil dilation), utilizes Eyenovia's novel Optejet dispenser, potentially offering improved efficacy and safety over traditional eye drops. The commercialization of these products could provide near-term revenue streams to support ongoing R&D efforts.

While the dilution from this offering is a concern, the potential long-term value creation from advancing these programs may outweigh the short-term impact. Investors should closely monitor clinical progress and initial sales figures as key indicators of Eyenovia's future prospects in the ophthalmic market.

NEW YORK, Sept. 27, 2024 (GLOBE NEWSWIRE) -- Eyenovia, Inc. (NASDAQ: EYEN) (“Eyenovia” or the “Company”), an ophthalmic technology company with two FDA-approved products and a late-stage asset in development for the treatment of pediatric progressive myopia, today announced it has entered into a securities purchase agreement with a healthcare focused institutional investor for the purchase and sale of 8,695,653 shares of its common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to an aggregate of 8,695,653 shares of common stock in a registered direct offering at a combined offering price of $0.46 per share and accompanying warrant. The warrants have an exercise price of $0.50 per share, will be exercisable commencing six months from the date of issuance and will expire five years from the initial exercise date. The closing of the offering is expected to take place on or about September 30, 2024, subject to the satisfaction of customary closing conditions.

The gross proceeds of the offering will be approximately $4 million before deducting placement agent fees and other estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the 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.

A.G.P./Alliance Global Partners is acting as the lead placement agent for the offering and Brookline Capital Markets, a division of Arcadia Securities, LLC is acting as a co-placement agent for the offering.

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 base prospectus and accompanying prospectus supplement. 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. Additionally, when available, electronic copies of the prospectus supplement may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.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.
Andy Jones
Chief Financial Officer
ajones@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

What is the size and price of Eyenovia's (EYEN) recent offering?

Eyenovia (EYEN) announced a $4 million registered direct offering, selling 8,695,653 shares (or equivalents) and warrants at a combined price of $0.46 per share and accompanying warrant.

When will the warrants in Eyenovia's (EYEN) offering be exercisable?

The warrants in Eyenovia's (EYEN) offering will be exercisable commencing six months from the date of issuance and will expire five years from the initial exercise date.

How does Eyenovia (EYEN) plan to use the proceeds from its recent offering?

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

What is the expected closing date for Eyenovia's (EYEN) registered direct offering?

The closing of Eyenovia's (EYEN) registered direct offering is expected to take place on or about September 30, 2024, subject to customary closing conditions.