Intelligent Bio Solutions Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Intelligent Bio Solutions (Nasdaq: INBS), a medical technology company focused on rapid, non-invasive testing solutions, has announced plans for an underwritten public offering of common stock shares. The offering will be managed by Ladenburg Thalmann & Co. Inc. as the sole bookrunning manager.

The offering is being conducted under a shelf registration statement filed with the SEC on April 8, 2022, and declared effective on April 20, 2022. A preliminary prospectus supplement and accompanying prospectus will be filed with the SEC. The completion, size, and terms of the offering are subject to market conditions, with no guarantees of successful execution.

Positive

• None.

Negative

• Potential shareholder dilution through new common stock issuance
• Uncertain offering terms and completion timeline indicating market risk
• No specified use of proceeds disclosed in the announcement

Insights

Investment Banking Analyst

This public offering announcement carries significant implications for INBS and its shareholders. The company's relatively small market capitalization of $13.1 million makes this capital raise particularly impactful, as any substantial offering will likely result in meaningful dilution for existing shareholders.

The selection of Ladenburg Thalmann as the sole bookrunner is noteworthy. This mid-tier investment bank typically handles smaller-scale offerings, suggesting this raise might be proportional to INBS's current market size. The use of a shelf registration from April 2022 indicates strategic planning for capital needs, though the timing - nearly two years after the registration - raises questions about the urgency of current funding requirements.

Several critical factors warrant attention: First, the absence of specified terms or size suggests potential pricing flexibility based on market reception. Second, the offering's structure as an underwritten deal, rather than an at-the-market (ATM) offering, indicates a more immediate capital need rather than gradual funding. Third, the timing amid current market conditions for small-cap biotech companies could impact the offering's pricing and success.

The 'subject to market conditions' clause is particularly relevant given the volatile nature of small-cap biotech stocks. Investors should note that such offerings typically price at a discount to current market prices to ensure successful placement, with the discount magnitude often correlating with market conditions and investor demand.

NEW YORK, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Intelligent Bio Solutions Inc. (Nasdaq: INBS) (the “Company”) a medical technology company delivering intelligent, rapid, non-invasive testing solutions, today announced that it is commencing an underwritten public offering of shares of its common stock. All of the shares of common stock are being offered by Intelligent Bio Solutions Inc. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

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

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 will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the preliminary 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 US 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 proposed transaction described in this press release, 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

Investor & Media Contact:

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

FAQ

What is the purpose of INBS's February 2024 public offering?

Intelligent Bio Solutions (INBS) announced a public offering of common stock shares, though the specific purpose and use of proceeds were not disclosed in the announcement.

Who is the underwriter for INBS's 2024 public offering?

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

When was INBS's shelf registration statement declared effective by the SEC?

The shelf registration statement was declared effective by the SEC on April 20, 2022.

How will INBS's public offering affect existing shareholders?

The public offering of common stock will likely result in dilution of existing shareholders' ownership stakes in the company.

What are the terms and size of INBS's 2024 public offering?

The specific terms and size of the offering were not disclosed, as they are subject to market conditions with no guarantee of completion.