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

Rhea-AI Summary

InflaRx N.V. (IFRX) has announced the pricing of its public offering, consisting of 8,250,000 ordinary shares at $2.00 per share and pre-funded warrants to purchase up to 6,750,000 ordinary shares. The pre-funded warrants are priced at $1.999 each, with a $0.001 exercise price.

The offering, expected to close on February 18, 2025, includes a 30-day option for underwriters to purchase up to 2,250,000 additional ordinary shares. Guggenheim Securities is serving as the book-running manager, with H.C. Wainwright & Co. and Lucid Capital Markets as co-lead managers.

The company plans to use the proceeds to fund clinical development of its pipeline candidates, including vilobelimab and INF904, and for general corporate purposes.

Positive

• Secured $30 million in funding through public offering
• Proceeds will support development of key pipeline candidates vilobelimab and INF904

Negative

• Potential dilution for existing shareholders through issuance of 8.25M shares and 6.75M pre-funded warrants
• Additional dilution possible if underwriters exercise option for 2.25M more shares

Insights

Financial Analyst

This $30 million capital raise represents a strategic but dilutive financing move for InflaRx. The offering's structure reveals several critical implications for investors:

The pricing at $2.00 per share, representing a 26% discount to the current market price, signals both urgency in raising capital and reflects current biotech market conditions. The inclusion of pre-funded warrants, essentially deferred shares with a nominal $0.001 exercise price, suggests institutional investor preference for flexible entry points while avoiding immediate ownership reporting requirements.

The total potential dilution is substantial. The base offering of 15M shares (including warrant shares) represents approximately 25% of the company's current market cap, potentially reaching 29% if the overallotment option is fully exercised. This level of dilution, while significant, is not unusual for clinical-stage biotech companies.

The participation of Guggenheim Securities as lead underwriter, supported by H.C. Wainwright and Lucid Capital, indicates institutional backing for the offering. This syndicate composition typically suggests a mix of healthcare-focused and retail investors, potentially providing better aftermarket support.

The proceeds will primarily fund the clinical development of vilobelimab and INF904, important for the company's anti-inflammatory therapeutic pipeline. This financing should extend the operational runway, though investors should monitor the burn rate and development timelines to assess if additional capital raises might be needed in the future.

The market's reaction will likely focus on the substantial discount and dilution impact, but the successful pricing of this offering in challenging market conditions demonstrates institutional confidence in InflaRx's clinical programs and management execution capability.

JENA, Germany, Feb. 13, 2025 (GLOBE NEWSWIRE) -- InflaRx N.V. (Nasdaq: IFRX) (the “Company”), a biopharmaceutical company pioneering anti-inflammatory therapeutics targeting the complement system, announced today the pricing of its underwritten public offering of 8,250,000 ordinary shares of the Company at an 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 is equal to the price per share at which ordinary shares are being sold to the public in this offering, minus $0.001, which is the exercise price of each pre-funded warrant. All ordinary shares and pre-funded warrants in the offering are being sold by the Company. The offering is expected to close on February 18, 2025, subject to the satisfaction of customary closing conditions.

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 is acting as book-running manager for the offering. H.C. Wainwright & Co. and Lucid Capital Markets, LLC are acting as co-lead managers for the offering.

A shelf registration statement relating to the ordinary shares and pre-funded warrants being sold in this offering was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on July 11, 2023. The offering will be made only by means of a prospectus and prospectus supplement. The final prospectus supplement and accompanying prospectus related to the offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. When available, 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 $30 million through a public offering of ordinary shares priced at $2.00 per share and pre-funded warrants.

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

The offering price is $2.00 per ordinary share.

How many shares and warrants are included in IFRX's February 2025 offering?

The offering includes 8,250,000 ordinary shares and pre-funded warrants to purchase up to 6,750,000 ordinary shares.

What will IFRX use the proceeds from the February 2025 offering for?

The proceeds will be used to fund clinical development of pipeline candidates, including vilobelimab and INF904, and for general corporate purposes.

When will IFRX's February 2025 public offering close?

The offering is expected to close on February 18, 2025, subject to customary closing conditions.