iSpecimen Inc. Announces Pricing of $5 Million Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

iSpecimen (Nasdaq: ISPC) has announced the pricing of a $5 million public offering of common stock and pre-funded warrants at $3.00 per share (minus $0.0001 per pre-funded warrant). The proceeds will be used for debt repayment, potential acquisitions, marketing services, and working capital. WestPark Capital is serving as the exclusive placement agent, with the offering expected to close on October 31, 2024. The offering is made pursuant to an SEC-registered Form S-1 filing that was declared effective on October 29, 2024.

Positive

• Secured $5 million in additional funding through public offering
• Strategic debt reduction plan through offering proceeds
• Potential for business expansion through acquisitions

Negative

• Potential dilution of existing shareholders through new stock issuance
• Taking on equity financing indicates possible cash flow constraints

Insights

Financial Analyst

This $5 million public offering at $3.00 per share represents a significant capital raise for iSpecimen, but comes with notable dilution for existing shareholders. The pricing appears challenging given the company's micro-cap status with just a $2.88 million market cap. Key concerns include:

• Debt repayment as primary use of proceeds suggests financial strain
• The offering size nearly doubles the company's market cap, indicating substantial dilution
• Pre-funded warrants structure adds complexity and potential future dilution

The debt repayment priority and working capital needs signal cash flow challenges. While potential acquisitions could provide growth opportunities, the company's small size and the offering's dilutive nature raise execution risk concerns. Investors should carefully weigh the balance between growth potential and dilution impact.

WOBURN, Mass., Oct. 30, 2024 (GLOBE NEWSWIRE) -- iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, announced today the pricing of its public offering of approximately $5 million of the Company’s common stock, and/or pre-funded warrants to purchase shares of common stock at a public offering price of $3.00 per share (minus $0.0001 per pre-funded warrant). The Company intends to use the proceeds of the offering for repayment of outstanding debt, potential acquisitions of assets or investments in businesses, products and technologies and for marketing and advertising services. The remainder of proceeds will be used for working capital purposes.

WestPark Capital, Inc. is acting as the exclusive placement agent in connection with the offering.

The offering is expected to close on October 31, 2024, subject to customary closing conditions. The securities described above are being offered pursuant to the Company’s registration statement on Form S-1 (File No. 333-282736) (the “Registration Statement”), initially filed with the Securities and Exchange Commission (the “SEC”) on October 18, 2024, and subsequently declared effective by the SEC on October 29, 2024. The offering is being made only by means of a prospectus which is a part of the Registration Statement. A preliminary prospectus relating to the offering has been filed with the SEC. A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at https://www.sec.gov/. Copies of the final prospectus relating to this offering, when available, may be obtained from WestPark Capital, Inc., 1800 Century Park East, Suite 220, Los Angeles, CA 90067, at 310-843-9300 or jstern@wpcapital.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall 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 the registration or qualification under the securities laws of any such state or other jurisdiction.

About iSpecimen

iSpecimen (Nasdaq: ISPC) offers an online marketplace for human biospecimens, connecting scientists in commercial and non-profit organizations with healthcare providers that have access to patients and specimens needed for medical discovery. Proprietary, cloud-based technology enables scientists to intuitively search for specimens and patients across a federated partner network of hospitals, labs, biobanks, blood centers and other healthcare organizations. For more information, please visit www.ispecimen.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate," "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.

Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risk factors contained in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statements occurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-looking statements.

Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

For further information, please contact:

Investor Contact
KCSA Strategic Communications
Phil Carlson
iSpecimen@kcsa.com

FAQ

What is the price per share for iSpecimen's (ISPC) October 2024 public offering?

iSpecimen's public offering is priced at $3.00 per share for common stock, with pre-funded warrants priced at $2.9999 ($3.00 minus $0.0001).

How much money is iSpecimen (ISPC) raising in its October 2024 public offering?

iSpecimen is raising approximately $5 million through its public offering of common stock and pre-funded warrants.

What will iSpecimen (ISPC) use the proceeds from its 2024 public offering for?

The proceeds will be used for debt repayment, potential acquisitions, marketing and advertising services, and working capital purposes.

When is iSpecimen's (ISPC) October 2024 public offering expected to close?

The public offering is expected to close on October 31, 2024, subject to customary closing conditions.