InflaRx Announces Closing of $30 Million Public Offering of Ordinary Shares and Pre-Funded Warrants

Rhea-AI Summary

InflaRx (Nasdaq: IFRX) has completed its underwritten public offering, raising approximately $30 million in gross proceeds. The offering consisted of 8,250,000 ordinary shares priced at $2.00 per share and pre-funded warrants to purchase up to 6,750,000 ordinary shares. The pre-funded warrants were priced at $1.999 each, with an exercise price of $0.001.

The company has granted underwriters a 30-day option to purchase up to 2,250,000 additional ordinary shares. The net proceeds will be used to fund clinical development of pipeline candidates, including vilobelimab and INF904, and for general corporate purposes. Guggenheim Securities acted as book-running manager, with H.C. Wainwright & Co. and Lucid Capital Markets as co-lead managers.

Positive

• Successfully raised $30 million in gross proceeds
• Secured additional funding for clinical development of pipeline candidates
• Underwriters granted 30-day option for additional share purchase

Negative

• Significant shareholder dilution through issuance of 8.25M shares and 6.75M pre-funded warrants
• Share offering price of $2.00 indicates relatively low valuation
• Additional dilution possible if underwriters exercise their 30-day option

Insights

Financial Analyst

This $30 million capital raise represents a significant financing event for InflaRx, structured as a creative combination of direct shares and pre-funded warrants to maximize investor participation. The offering price of $2.00 matches the current market price, indicating reasonable market confidence despite the dilutive impact.

The use of pre-funded warrants ($1.999 + $0.001 exercise price) is a sophisticated approach that provides immediate capital while offering investors flexibility in timing their equity ownership. This structure can help minimize immediate market pressure while ensuring the company receives the full funding upfront.

With a current market cap of approximately $118 million, this raise represents about 25% dilution, a substantial but necessary step to advance their clinical pipeline. The involvement of Guggenheim Securities as lead underwriter, along with H.C. Wainwright and Lucid Capital, adds credibility to the offering.

The capital allocation strategy focuses on advancing vilobelimab and INF904, suggesting a well-defined development pathway in the competitive anti-inflammatory therapeutics space. This funding should provide runway for key clinical milestones, though investors should monitor the burn rate and development timelines closely.

JENA, Germany, Feb. 18, 2025 (GLOBE NEWSWIRE) -- InflaRx N.V. (Nasdaq: IFRX) (the “Company”), a biopharmaceutical company pioneering anti-inflammatory therapeutics targeting the complement system, announced today that it has completed its underwritten public offering of 8,250,000 ordinary shares of the Company at a public offering price of $2.00 per ordinary share and in lieu of ordinary shares to certain investors, pre-funded warrants to purchase up to 6,750,000 of the Company’s ordinary shares. The purchase price of each pre-funded warrant was equal to the price per share at which ordinary shares were sold to the public in this offering, minus $0.001, which is the exercise price of each pre-funded warrant. The aggregate gross proceeds from the offering were approximately $30 million, before deducting the underwriting discount and offering expenses. In addition, the Company has granted the underwriters a 30-day option to purchase up to 2,250,000 additional ordinary shares at the public offering price, less the underwriting discount.

The Company intends to use the net proceeds from the offering primarily to fund clinical development of its pipeline candidates, including vilobelimab and INF904, and for general corporate purposes.

Guggenheim Securities, LLC acted as book-running manager for the offering. H.C. Wainwright & Co. and Lucid Capital Markets, LLC acted as co-lead managers for the offering.

A shelf registration statement relating to the ordinary shares and pre-funded warrants sold in this offering was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on July 11, 2023. The offering was made only by means of a prospectus and prospectus supplement. The prospectus supplement and accompanying prospectus related to the offering were filed with the SEC and are available on the SEC’s website located at www.sec.gov. Copies of the prospectus supplement and accompanying prospectus related to the offering may be obtained by contacting Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, New York, NY 10017, by telephone at (212) 518-9544 or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

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

About InflaRx N.V.:

InflaRx (Nasdaq: IFRX) is a biopharmaceutical company pioneering anti-inflammatory therapeutics by applying its proprietary anti-C5a and anti-C5aR technologies to discover, develop and commercialize highly potent and specific inhibitors of the complement activation factor C5a and its receptor C5aR. C5a is a powerful inflammatory mediator involved in the progression of a wide variety of inflammatory diseases. InflaRx’s lead product candidate, vilobelimab, is a novel, intravenously delivered, first-in-class, anti-C5a monoclonal antibody that selectively binds to free C5a and has demonstrated disease-modifying clinical activity and tolerability in multiple clinical studies in different indications. InflaRx is also developing INF904, an orally administered small molecule inhibitor of the C5a receptor. InflaRx was founded in 2007, and the group has offices and subsidiaries in Jena and Munich, Germany, as well as Ann Arbor, MI, USA. For further information, please visit www.inflarx.com.

InflaRx GmbH (Germany) and InflaRx Pharmaceuticals, Inc. (USA) are wholly owned subsidiaries of InflaRx N.V. (together, InflaRx).

Contacts:

InflaRx N.V.
Jan Medina, CFA
Vice President, Head of Investor Relations
Email: IR@inflarx.de 

MC Services AG
Katja Arnold, Laurie Doyle, Dr. Regina Lutz
Email: inflarx@mc-services.eu
Europe: +49 89-210 2280
US: +1-339-832-0752

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “estimate,” “believe,” “predict,” “potential” or “continue,” among others. Forward-looking statements appear in a number of places throughout this release and may include statements regarding our intentions, beliefs, projections, outlook, analyses, current expectations and the risks, uncertainties and other factors described under the heading “Risk Factors” and “Cautionary statement regarding forward looking statements” in our periodic filings with the SEC. These statements speak only as of the date of this press release and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements, and we assume no obligation to update these forward-looking statements, even if new information becomes available in the future, except as required by law.

FAQ

How much did InflaRx (IFRX) raise in its February 2025 public offering?

InflaRx raised approximately $30 million in gross proceeds through its February 2025 public offering.

What was the price per share for IFRX's 2025 public offering?

The public offering price was $2.00 per ordinary share.

How will InflaRx use the proceeds from its 2025 public offering?

InflaRx intends to use the proceeds primarily to fund clinical development of pipeline candidates, including vilobelimab and INF904, and for general corporate purposes.

How many shares and warrants were issued in IFRX's February 2025 offering?

InflaRx issued 8,250,000 ordinary shares and pre-funded warrants to purchase up to 6,750,000 ordinary shares.

What is the exercise price of IFRX's pre-funded warrants from the 2025 offering?

The exercise price of the pre-funded warrants is $0.001 per share.