Intelligent Bio Solutions Inc. Announces Pricing of $2.6 Million Public Offering of Common Stock

Rhea-AI Summary

Intelligent Bio Solutions (Nasdaq: INBS) has announced the pricing of its public offering of 1,304,348 shares of common stock at $2.00 per share, aiming to raise approximately $2.6 million in gross proceeds before deducting underwriting costs and expenses.

Ladenburg Thalmann & Co. Inc. is serving as the sole bookrunning manager for the offering. The company has granted the underwriter a 45-day option to purchase up to an additional 195,652 shares at the public offering price less underwriting discounts. The offering is expected to close around February 21, 2025.

The net proceeds will be used for working capital and general corporate purposes. The offering is being made through a shelf registration statement filed with the SEC on April 8, 2022, and declared effective on April 20, 2022.

Positive

• Secured $2.6 million in additional funding through public offering
• Offering backed by established underwriter Ladenburg Thalmann

Negative

• Dilution of existing shareholders through issuance of 1,304,348 new shares
• Potential additional dilution if 45-day option for 195,652 extra shares is exercised

Insights

Financial Analyst

This $2.6M public offering reveals several concerning aspects about Intelligent Bio Solutions' current position. The 24.2% discount to market price is particularly noteworthy, as such steep discounts typically signal either urgent capital needs or weak institutional investor interest. The relatively small size of the offering, combined with the significant discount, suggests this may be a bridge financing rather than a strategic capital raise.

The structure of the deal, including the 45-day option for additional shares, indicates a careful balancing act between immediate capital needs and market absorption capacity. The selection of Ladenburg Thalmann as sole bookrunner, rather than a larger investment bank, might reflect institutional interest or the deal's small size making it less attractive to major underwriters.

For existing shareholders, this offering presents substantial dilution concerns. The addition of 1.3M new shares (potentially extending to 1.5M with the overallotment option) will significantly impact ownership percentages and earnings per share metrics. The timing and terms of this offering suggest the company may have alternatives for raising capital, which could indicate underlying financial pressures.

The stated use of proceeds for "working capital and general corporate purposes" lacks specificity and might not inspire confidence in the company's strategic direction. This generic description, combined with the offering's terms, suggests the funding is more about maintaining operations than funding specific growth initiatives.

NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Intelligent Bio Solutions Inc. (Nasdaq: INBS) (the “Company”), a medical technology company delivering intelligent, rapid, non-invasive testing solutions, today announced the pricing of its previously announced underwritten public offering of 1,304,348 shares of common stock at a public offering price of $2.00 per share of common stock, for gross proceeds of approximately $2.6 million, before deducting underwriting discounts and commissions and offering expenses.

Ladenburg Thalmann & Co. Inc. is acting as the sole bookrunning manager for the offering.

All of the shares of common stock to be sold in the offering will be sold by the Company. In addition, the Company has granted the underwriter a 45-day option to purchase up to an additional 195,652 shares of its common stock at the public offering price less the underwriting discounts and commissions. The offering is expected to close on or about February 21, 2025, subject to customary closing conditions.

The Company intends to use the net proceeds from this offering for working capital and general corporate purposes. The offering is being made pursuant to a shelf registration statement filed with the Securities and Exchange Commission (“SEC”) on April 8, 2022, and declared effective by the SEC on April 20, 2022. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website at www.sec.gov. A final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may also be obtained by contacting Ladenburg Thalmann & Co. Inc. at Attn: Prospectus Department, 640 Fifth Avenue, 4th Floor, New York, NY 10019 or by e-mail at prospectus@ladenburg.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will 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 registration or qualification under the securities laws of any such state or other 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 transform 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 the 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. The Company’s current customer segments outside the U.S. 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 press 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 consummate the transaction described in this press release and the use of proceeds therefrom, 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

Investor & Media Contact:

Valter Pinto, Managing Director
KCSA Strategic Communications
PH: (212) 896-1254
INBS@kcsa.com

FAQ

How much money is INBS raising in its February 2025 public offering?

INBS is raising approximately $2.6 million in gross proceeds through the public offering of 1,304,348 shares at $2.00 per share.

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

The public offering price is set at $2.00 per share of common stock.

When will INBS's February 2025 public offering close?

The offering is expected to close on or about February 21, 2025, subject to customary closing conditions.

How will INBS use the proceeds from its February 2025 public offering?

The company intends to use the net proceeds for working capital and general corporate purposes.

What additional options did INBS grant to the underwriter in the February 2025 offering?

INBS granted the underwriter a 45-day option to purchase up to an additional 195,652 shares at the public offering price less underwriting discounts.