Lifecore Biomedical Raises $24.3 Million in Private Placement of Common Stock
Lifecore Biomedical, a fully integrated CDMO, has successfully closed a $24.3 million private placement of common stock. The company issued 5,928,775 shares at $4.10 per share to new and existing investors. Lifecore plans to use the proceeds for working capital, operations, and general corporate purposes.
Paul Josephs, president and CEO of Lifecore, expressed satisfaction with the investors' confidence, viewing it as support for the new management team, value creation plan, and market opportunities. The common stock was issued under an exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933 and is not registered for public sale in the United States.
Lifecore Biomedical, un CDMO completamente integrato, ha recentemente concluso un collocamento privato di $24,3 milioni di azioni ordinarie. L'azienda ha emesso 5.928.775 azioni a $4,10 per azione a investitori nuovi ed esistenti. Lifecore prevede di utilizzare i proventi per capitale circolante, operazioni e scopi aziendali generali.
Paul Josephs, presidente e CEO di Lifecore, ha espresso soddisfazione per la fiducia degli investitori, interpretandola come un sostegno per il nuovo team di gestione, il piano di creazione di valore e le opportunità di mercato. Le azioni ordinarie sono state emesse in virtù di un'esenzione dalla registrazione ai sensi della Sezione 4(a)(2) del Securities Act del 1933 e non sono registrate per la vendita pubblica negli Stati Uniti.
Lifecore Biomedical, un CDMO completamente integrado, ha cerrado con éxito un colocación privada de $24,3 millones de acciones ordinarias. La empresa emitió 5,928,775 acciones a $4,10 por acción a nuevos y existentes inversionistas. Lifecore planea usar los ingresos para capital de trabajo, operaciones y fines corporativos generales.
Paul Josephs, presidente y CEO de Lifecore, expresó su satisfacción con la confianza de los inversionistas, viéndola como un apoyo para el nuevo equipo de gestión, el plan de creación de valor y las oportunidades de mercado. Las acciones ordinarias se emitieron bajo una exención de registro de conformidad con la Sección 4(a)(2) de la Ley de Valores de 1933 y no están registradas para la venta pública en los Estados Unidos.
Lifecore Biomedical는 완전 통합 CDMO로서 2,430만 달러의 사모 배정을 성공적으로 완료했습니다. 회사는 5,928,775주를 주당 4.10달러에 신규 및 기존 투자자들에게 발행했습니다. Lifecore는 수익금을 운영 자본, 운영 및 일반 기업 목적에 사용할 계획입니다.
Lifecore의 회장 겸 CEO인 Paul Josephs는 투자자들의 신뢰에 만족하며, 이를 새로운 관리 팀, 가치 창출 계획 및 시장 기회에 대한 지원으로 보고 있습니다. 보통주는 1933년 증권법 섹션 4(a)(2)에 따라 등록 면제하에 발행되었으며, 미국 내 공공 판매를 위해 등록되지 않았습니다.
Lifecore Biomedical, un CDMO entièrement intégré, a réussi à réaliser un placement privé de 24,3 millions de dollars d'actions ordinaires. L'entreprise a émis 5 928 775 actions à 4,10 dollars par action à de nouveaux et anciens investisseurs. Lifecore prévoit d'utiliser les recettes pour le fonds de roulement, les opérations et les objectifs sociaux d'entreprise généraux.
Paul Josephs, président-directeur général de Lifecore, a exprimé sa satisfaction concernant la confiance des investisseurs, la considérant comme un soutien pour la nouvelle équipe de direction, le plan de création de valeur et les opportunités de marché. Les actions ordinaires ont été émises en vertu d'une exemption d'enregistrement en vertu de la Section 4(a)(2) de la loi sur les valeurs mobilières de 1933 et ne sont pas enregistrées pour la vente publique aux États-Unis.
Lifecore Biomedical, ein vollständig integrierter CDMO, hat erfolgreich eine Private Placement über 24,3 Millionen Dollar von Stammaktien abgeschlossen. Das Unternehmen hat 5.928.775 Aktien zu 4,10 Dollar pro Aktie an neue und bestehende Investoren ausgegeben. Lifecore plant, die Einnahmen für Betriebs- und allgemeine Unternehmenszwecke zu verwenden.
Paul Josephs, Präsident und CEO von Lifecore, drückte seine Zufriedenheit mit dem Vertrauen der Investoren aus und sieht es als Unterstützung für das neue Managementteam, den Wertschöpfungsplan und die Marktchancen. Die Stammaktien wurden aufgrund einer Ausnahmeregelung von der Registrierung gemäß Section 4(a)(2) des Securities Act von 1933 ausgegeben und sind nicht für den öffentlichen Verkauf in den Vereinigten Staaten registriert.
- Raised $24.3 million through private placement
- Attracted both new and existing investors
- Funds to be used for working capital and operations
- Potential dilution of existing shareholders due to issuance of new shares
Insights
The
Key points to consider:
- The participation of both new and existing investors indicates a vote of confidence in the company's new management and strategy.
- The funds will bolster working capital and support operations, which is important for a CDMO in a growth phase.
- With 5,928,775 new shares issued, this represents significant dilution for existing shareholders, approximately
16% based on the company's previous share count. - The use of a PIPE (Private Investment in Public Equity) suggests the company may have found this method more efficient than a public offering, possibly due to market conditions or timing considerations.
While the capital raise strengthens Lifecore's financial position, investors should monitor how effectively management deploys this capital to drive growth and improve operational efficiency in the competitive CDMO market.
PIPE with New and Existing Investors Supports Working Capital and Operations
CHASKA, Minn., Oct. 04, 2024 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (“Lifecore”), a fully integrated contract development and manufacturing organization (“CDMO”), today announced the closing of a
“We are very pleased to have the confidence of these new and long-term stockholders, which we believe reflects their support for our new management team, our plan for value creation, and the tremendous opportunity we have in this growing market,” commented Paul Josephs, president and chief executive officer of Lifecore.
Important Information Regarding the Common Stock
The common stock was issued in reliance on an exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) thereof. The common stock sold in the private placement has not been and will not be registered under the Securities Act, or any state or other applicable jurisdiction's securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions' securities laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, 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 Lifecore Biomedical
Lifecore Biomedical, Inc. (Nasdaq: LFCR) is a fully integrated contract development and manufacturing organization (CDMO) that offers highly differentiated capabilities in the development, fill and finish of sterile injectable pharmaceutical products in syringes, vials, and cartridges, including complex formulations. As a leading manufacturer of premium, injectable-grade hyaluronic acid, Lifecore brings more than 40 years of expertise as a partner for global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories. For more information about the Company, visit Lifecore’s website at www.lifecore.com.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “might”, “will”, “should”, “can have”, “likely” and similar expressions are used to identify forward-looking statements. All forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially, including such factors among others, as the Company’s ability to successfully enact its business strategies, including with respect to installation, capacity generation and its ability to attract demand for its services, and its ability to expand its relationship with its existing customers or attract new customers; the impact of inflation on the Company’s business and financial condition; changes in business conditions and general economic conditions both domestically and globally including rising interest rates and fluctuation in foreign currency exchange rates; the Company’s ability to access sufficient capital to fund its business strategies; and other risk factors set forth from time to time in the Company’s SEC filings, including, but not limited to, the Annual Report on Form 10-K for the year ended May 26, 2024 (the “2024 10-K”). For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including the risk factors contained in the 2024 10-K. Forward-looking statements represent management’s current expectations as of the date hereof and are inherently uncertain. Except as required by law, we do not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.
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