Intelligent Bio Solutions Inc. Announces Exercise of Previously Issued Warrants for $1.77 Million in Gross Proceeds
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Insights
The exercise of Series E Warrants by Intelligent Bio Solutions Inc. represents a strategic move to bolster the company's working capital and support general corporate purposes. With the exercise price set at $2.9232 per share and the gross proceeds expected to be approximately $1.77 million, this transaction could potentially provide a short-term liquidity boost. The issuance of Replacement Warrants at $4.50 per share, a significant premium over the Existing Warrants, reflects a positive outlook from the warrant holders on the company's future value. However, investors should be aware of the dilutive effect of such transactions, as the issuance of additional shares could potentially reduce earnings per share and affect stock price.
Moreover, the involvement of Ladenburg Thalmann as the exclusive placement agent adds a layer of credibility to the transaction, which could reassure investors of the procedural integrity. It is important to note that the Replacement Warrants are unregistered and restricted to accredited investors, which limits marketability and could introduce liquidity risk for these investors. The commitment to file a registration statement for the resale of the common stock issuable upon exercise of the Replacement Warrants indicates a future pathway to liquidity for these securities.
The legal intricacies of this transaction involve compliance with the Securities Act of 1933, as amended. The private placement of Replacement Warrants under Section 4(a)(2) indicates a transaction exempt from registration, targeting accredited investors. This exemption allows Intelligent Bio Solutions Inc. to streamline the capital-raising process while adhering to SEC regulations. Investors should consider the legal obligations that the company will undertake, including the filing of a registration statement for the resale of the shares, which could affect the timeline and availability of these securities on the market.
Furthermore, the stipulation that the securities may not be offered or sold without registration or an applicable exemption highlights the regulatory landscape governing such transactions. The company's proactive approach to filing a registration statement demonstrates a commitment to regulatory compliance and transparency, which can be a positive signal to investors regarding corporate governance practices.
From a market perspective, the exercise of warrants and subsequent issuance of Replacement Warrants by Intelligent Bio Solutions Inc. is a tactical decision that may resonate with investors looking for signs of growth and confidence within the medical technology sector. The setting of a higher exercise price for the Replacement Warrants could indicate an anticipated appreciation in the company's stock value, which may be based on current market trends, product pipelines, or operational strategies.
However, the impact on the stock market will largely depend on investor perception of the company's future performance and risk assessment. If the market views this capital raise as a positive development, it could lead to an uptick in investor interest and stock valuation. Conversely, if the dilution concern outweighs the potential for growth, the stock price may face downward pressure. Monitoring peer performance and sector movements will be essential in assessing the broader implications of this transaction.
NEW YORK, Feb. 05, 2024 (GLOBE NEWSWIRE) -- Intelligent Bio Solutions Inc. (Nasdaq: INBS) ("INBS" or the "Company"), a medical technology company delivering intelligent, rapid, non-invasive testing solutions, today announced an agreement between the Company and several current warrant holders to exercise certain existing Series E Warrants (the “Existing Warrants”) to purchase up to an aggregate of 606,064 shares of common stock that were issued on October 4, 2023, in an underwritten public offering. The Existing Warrants have an exercise price of
The shares of common stock issuable upon exercise of the Existing Warrants are registered pursuant to a registration statement that was filed and declared effective by the Securities and Exchange Commission (the “SEC”). The gross proceeds to the Company from the exercise of the Existing Warrants are expected to be approximately
In consideration for the immediate exercise of the Existing Warrants for cash, the exercising holders will receive new unregistered warrants (the “Replacement Warrants”) to purchase shares of common stock in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”). The Replacement Warrants will be exercisable into an aggregate of up to 606,064 shares of common stock, at an exercise price of
The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.
Ladenburg Thalmann & Co. Inc. acted as the exclusive placement agent for the warrant exercise transaction.
The Replacement Warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the 1933 Act and, along with the shares of common stock issuable upon their exercise, have not been registered under the 1933 Act, and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. The Company has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issuable upon exercise of the Replacement Warrants.
This press release shall 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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Intelligent Bio Solutions Inc.
Intelligent Bio Solutions Inc. (NASDAQ: INBS) is a medical technology company delivering innovative, rapid, non-invasive testing solutions. The Company believes that its Intelligent Fingerprinting Drug Screening System will revolutionize portable testing through fingerprint sweat analysis, which has the potential for broader applications in additional fields. Designed as a hygienic and cost-effective system, the test screens for recent use of drugs commonly found in the workplace, including opiates, cocaine, methamphetamine, and cannabis. With sample collection in seconds and results in under ten minutes, this technology would be a valuable tool for employers in safety-critical industries. Additionally, the Company's biosensor platform has the potential to test for up to 130 indications, ranging from glucose to immunological conditions and communicable diseases. The Company's current customer segments include construction, manufacturing and engineering, transport and logistics firms, drug treatment organizations, and coroners.
For more information, visit: http://www.ibs.inc/
Forward-Looking Statements:
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, Intelligent Bio Solutions Inc.'s ability to successfully develop and commercialize its drug and diagnostic tests, realize commercial benefit from its partnerships and collaborations, and secure regulatory approvals, among others. Although Intelligent Bio Solutions Inc. believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Intelligent Bio Solutions Inc. has attempted to identify forward-looking statements by terminology, including "believes," "estimates," "anticipates," "expects," "plans," "projects," "intends," "potential," "may," "could," "might," "will," "should," "approximately" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, included in Intelligent Bio Solutions' public filings filed with the Securities and Exchange Commission. Any forward-looking statements contained in this release speak only as of its date. Intelligent Bio Solutions undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
Company Contact:
Intelligent Bio Solutions Inc.
info@ibs.inc
LinkedIn | Twitter
Media Contact:
Cheryl Billson
Comma Communications
cheryl.billson@commacomms.com
+44 (0)7791 720460
FAQ
What is the agreement between Intelligent Bio Solutions Inc. and the warrant holders?
How many shares of common stock will be purchased as a result of the agreement?
What are the gross proceeds to the company from the exercise of the Existing Warrants?
What will the exercising holders receive as part of the agreement?
What are the intended uses of the net proceeds from the offering?
Who acted as the exclusive placement agent for the warrant exercise transaction?
