Greenwich LifeSciences Announces $2.5 Million Private Placement

Rhea-AI Summary

Greenwich LifeSciences (Nasdaq: GLSI) announced a private placement agreement with CEO Snehal Patel. The agreement involves the sale of 174,825 shares at $14.30 per share, totaling approximately $2.5 million. The closing is anticipated around June 18, 2024, subject to customary conditions. The proceeds will be used for clinical development and working capital. No investment banking fees are involved, and Patel has agreed to a one-year lock-up period for the acquired shares. The transaction was conducted under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, meaning the shares are not registered and can only be resold under certain conditions.

Positive

• Private placement raises approximately $2.5 million.
• Funds intended for clinical development and working capital.
• No investment banking fees incurred.
• CEO has agreed to a one-year lock-up period.

Negative

• Shares sold in the private placement are restricted and unregistered.
• Potential shareholder dilution with the issuance of new shares.
• No guarantee of the closing until customary conditions are met.

Insights

Financial Analyst

The private placement of $2.5 million signifies a strategic move by Greenwich LifeSciences to bolster its financial health, particularly in support of its ongoing Phase III clinical trial for GLSI-100. The direct involvement of the CEO, Snehal Patel, as an investor is noteworthy as it showcases strong insider confidence in the company's prospects. Furthermore, the absence of investment banking fees implies a cost-effective financing method, maximizing the funds dedicated to clinical development and working capital. The lock-up agreement for one year indicates a commitment to long-term growth, potentially reducing immediate stock dilution and signaling stability to investors. Such maneuvers can positively influence investor sentiment in the short term and offer a degree of financial security for upcoming clinical milestones.

Medical Research Analyst

The funding allocation towards clinical development suggests an accelerated path for FLAMINGO-01's Phase III trial. Immunotherapy treatments like GLSI-100 are pivotal in the fight against breast cancer recurrences and additional financial resources can expedite research activities, potentially leading to earlier clinical data release. Investors should monitor the progress of this trial, as successful outcomes can significantly enhance Greenwich LifeSciences' valuation. The company's ability to secure financing internally also points to robust internal support for its research agenda.

STAFFORD, Texas, June 14, 2024 (GLOBE NEWSWIRE) -- Greenwich LifeSciences, Inc. (Nasdaq: GLSI) (the "Company" or "Greenwich"), a clinical-stage biopharmaceutical company focused on its Phase III clinical trial, FLAMINGO-01, which is evaluating GLSI-100, an immunotherapy to prevent breast cancer recurrences, today announced that it has entered into a securities purchase agreement with its Chief Executive Officer, Snehal Patel, for the purchase and sale of 174,825 shares of its common stock at a purchase price of $14.30 per share in a private placement. The closing of the private placement is expected to occur on or about June 18, 2024, subject to the satisfaction of customary closing conditions.

The gross proceeds to the Company from the offering are expected to be approximately $2.5 million, before deducting offering expenses payable by the Company. Greenwich intends to use the net proceeds from the offering for clinical development and working capital. No investment banking fees are being paid in connection with this offering. Mr. Patel has agreed to a one year lock up agreement with respect to his shares of common stock acquired in the offering. 

The offer and sale of the foregoing shares were made by Greenwich in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and/or Regulation D promulgated thereunder, and such securities have not been registered under the Act or applicable state securities laws. Accordingly, such securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. 

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 Greenwich LifeSciences, Inc.

Greenwich LifeSciences is a clinical-stage biopharmaceutical company focused on the development of GP2, an immunotherapy to prevent breast cancer recurrences in patients who have previously undergone surgery. GP2 is a 9 amino acid transmembrane peptide of the HER2 protein, a cell surface receptor protein that is expressed in a variety of common cancers, including expression in 75% of breast cancers at low (1+), intermediate (2+), and high (3+ or over-expressor) levels. Greenwich LifeSciences has commenced a Phase III clinical trial, FLAMINGO-01. For more information on Greenwich LifeSciences, please visit the Company's website at www.greenwichlifesciences.com and follow the Company's Twitter at https://twitter.com/GreenwichLS.

Forward-Looking Statement Disclaimer

Statements in this press release contain "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will," "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Greenwich LifeSciences Inc.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict, including statements regarding the intended use of net proceeds from the public offering; consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section entitled "Risk Factors" in Greenwich LifeSciences' Annual Report on Form 10-K for the year ended December 31, 2023 and other periodic reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Greenwich LifeSciences, Inc. undertakes no duty to update such information except as required under applicable law.

Company Contact
Snehal Patel
Investor Relations
Office: (832) 819-3232
Email: info@greenwichlifesciences.com

Investor & Public Relations Contact for Greenwich LifeSciences
Dave Gentry
RedChip Companies Inc.
Office: 1-800-RED CHIP (733 2447)
Email: dave@redchip.com

FAQ

What is the purpose of Greenwich LifeSciences' private placement?

The private placement is intended to raise funds for clinical development and working capital.

How many shares are being sold in Greenwich LifeSciences' private placement?

A total of 174,825 shares are being sold in the private placement.

What is the share price in the Greenwich LifeSciences private placement?

The share price is $14.30 per share.

When is the closing date for Greenwich LifeSciences' private placement?

The closing is expected to occur around June 18, 2024, subject to customary conditions.

Will the shares from Greenwich LifeSciences' private placement be registered?

No, the shares are not registered and are sold under an exemption from the registration requirements.

What is the total amount raised by Greenwich LifeSciences through this private placement?

The total amount raised is approximately $2.5 million.

Will any investment banking fees be paid for Greenwich LifeSciences' private placement?

No, there will be no investment banking fees paid in connection with this offering.

What restrictions apply to the shares acquired by the CEO in Greenwich LifeSciences' private placement?

The CEO has agreed to a one-year lock-up period for the shares acquired.