First Wave BioPharma Announces Results of Special Meeting of Stockholders

Rhea-AI Summary

First Wave BioPharma (NASDAQ:FWBI) announced that all proposals were approved during their special stockholder meeting on January 13, 2023. Key approvals included a private placement allowing for the issuance of over 20% of common stock and a reverse stock split ranging from 1-for-3 to 1-for-40. The exact split ratio will be determined by the board of directors. Voting results will be disclosed in a Form 8-K. First Wave BioPharma focuses on developing non-systemic therapies for gastrointestinal diseases, with ongoing clinical programs targeting exocrine pancreatic insufficiency and inflammatory bowel disease.

Positive

• Approval of private placement to issue over 20% of common stock.
• Approval of reverse stock split to potentially enhance stock price.
• Focus on advancing multiple clinical programs for gastrointestinal diseases.

Negative

• Reverse stock split may indicate current stock price issues.
• Potential dilution of shares due to private placement.

BOCA RATON, Fla., Jan. 13, 2023 (GLOBE NEWSWIRE) -- First Wave BioPharma, Inc. (NASDAQ:FWBI) (“First Wave BioPharma” or the “Company”), a clinical-stage biopharmaceutical company specializing in the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases, today announced that the Company’s stockholders have approved all proposals voted on at the Company’s special meeting of stockholders (the “Special Meeting”) held on January 13, 2023.

The first proposal was the approval the issuance of more than 20% of the Company’s common stock pursuant to the private placement and warrant amendment agreement entered into by the Company on November 20, 2022. The second proposal was the adoption and approval of an amendment to the Company’s Amended and Restated Certificate of Incorporation, as amended, to effect a reverse stock split of the Company’s issued and outstanding shares of common stock, at a specific ratio, ranging from one-for-three (1:3) to one-for-forty (1:40), at any time prior to the one-year anniversary date of the Special Meeting, with the exact ratio to be determined by the Company’s board of directors without further approval or authorization of the stockholders. The third proposal was the approval of the adjournment of the Special Meeting to the extent there were insufficient proxies at the Special Meeting to approve any one or more of the foregoing proposals.

Final voting results from the Special Meeting will be included in a Form 8-K filed with the Securities and Exchange Commission.

About First Wave BioPharma, Inc.
First Wave BioPharma is a clinical-stage biopharmaceutical company specializing in the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases. The Company is currently advancing a therapeutic development pipeline with multiple clinical stage programs built around its two proprietary technologies – the biologic adrulipase, a recombinant lipase enzyme designed to enable the digestion of fats and other nutrients, and niclosamide, an oral small molecule with anti-inflammatory properties. First Wave is advancing two Phase 2 clinical programs built around adrulipase for the treatment of exocrine pancreatic insufficiency (FW-EPI) in patients with cystic fibrosis (CF) and chronic pancreatitis (CP). In developing adrulipase, First Wave is seeking to provide CF and CP patients with a safe and effective therapy to control EPI that is non-animal derived and offers the potential to dramatically reduce their daily pill burden. The company is also advancing multiple programs involving niclosamide, including FW-UP for ulcerative proctitis and ulcerative proctosigmoiditis, FW-UC for ulcerative colitis, and FW-CD for Crohn’s disease. First Wave BioPharma is headquartered in Boca Raton, Florida. For more information visit www.firstwavebio.com.

Forward-Looking Statement
This press release may contain certain statements relating to future results which are forward-looking statements. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements, depending on factors including whether results obtained in preclinical and nonclinical studies and clinical trials will be indicative of results obtained in future clinical trials; whether preliminary or interim results from a clinical trial will be indicative of the final results of the trial; whether the contemplated offering will be successful and whether the Company will be able to regain and maintain compliance with Nasdaq’s continued listing criteria; the size of the potential markets for the Company’s drug candidates and its ability to service those markets; the effects of the First Wave Bio, Inc. acquisition, the related settlement and their effect on the Company’s business, operating results and financial prospects; and the Company’s current and future capital requirements and its ability to raise additional funds to satisfy its capital needs. Additional information concerning the Company and its business, including a discussion of factors that could materially affect the Company’s financial results are contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, under the heading “Risk Factors,” as well as the Company’s subsequent filings with the Securities and Exchange Commission. All forward-looking statements included in this press release are made only as of the date of this press release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.

For more information:
First Wave BioPharma, Inc.
777 Yamato Road, Suite 502
Boca Raton, FL 33431
Phone: (561) 589-7020
info@firstwavebio.com

Media contact:
Tiberend Strategic Advisors, Inc.
David Schemelia
(609) 468-9325
dschemelia@tiberend.com

Bill Borden
(732) 910-1620
bborden@tiberend.com

FAQ

What were the results of FWBI's special stockholder meeting on January 13, 2023?

All proposals were approved, including a private placement and a reverse stock split.

What is the purpose of the reverse stock split approved by FWBI?

The reverse stock split aims to potentially enhance the stock price by consolidating shares.

How much common stock can FWBI issue according to the approved private placement?

FWBI can issue over 20% of its common stock as per the approved private placement.

What clinical programs is FWBI currently advancing?

FWBI is advancing clinical programs targeting exocrine pancreatic insufficiency and inflammatory bowel disease.