Inotiv, Inc. Completes Equity Offering for Net Proceeds of Approximately $3.6 Million

Rhea-AI Summary

Inotiv (NOTV) has completed an equity offering, raising approximately $3.6 million in net proceeds through the issuance of 900,000 additional common shares at $4.25 per share. The offering, which closed on December 30, 2024, was executed in connection with a previously announced underwritten public offering. Lake Street Capital Markets acted as the sole book-running manager. The company plans to utilize the proceeds for working capital, capital expenditures, and general corporate purposes. The offering was conducted under a shelf registration statement that became effective on August 31, 2022.

Positive

• Secured $3.6 million in additional working capital
• Successfully completed optional share offering with full underwriter allocation

Negative

• Shareholder dilution through issuance of 900,000 new shares
• Low share price of $4.25 indicates challenging market conditions

Insights

Financial Analyst

The $3.6 million equity raise through the sale of 900,000 shares at $4.25 per share represents a relatively small capital injection for Inotiv, accounting for approximately 2.9% of its market cap. The offering was executed at a notable discount to recent trading prices, suggesting some dilution for existing shareholders. This additional capital, while modest, provides some breathing room for working capital and general corporate purposes. However, the small size of the raise combined with the pricing discount could signal potential challenges in accessing capital markets on more favorable terms. Lake Street Capital Markets' involvement as the sole book-runner, rather than a larger investment bank, further supports this interpretation. The offering's completion under an existing shelf registration indicates proactive financial planning, though the timing and terms suggest some urgency in securing additional funding.

Market Research Analyst

The contract research organization (CRO) sector faces increasing pressure as biotech funding remains tight in the current market environment. This capital raise, while completed successfully, reflects broader industry dynamics where smaller CROs must carefully manage their capital structure. The pricing at $4.25 suggests market skepticism, as secondary offerings typically require discounts to attract institutional investors. This financing event occurs against a backdrop of industry consolidation and cost pressures, where scale and operational efficiency are increasingly critical. For Inotiv, the relatively modest size of this raise may provide short-term operational flexibility but doesn't substantially alter their competitive position in a market dominated by larger CROs with stronger balance sheets.

WEST LAFAYETTE, Ind., Dec. 30, 2024 (GLOBE NEWSWIRE) -- Inotiv, Inc. (Nasdaq: NOTV) (the “Company”), a leading contract research organization specializing in nonclinical and analytical drug discovery and development services and research models and related products and services, today announced that it had raised an additional $3.6 million in net proceeds from the optional shares in connection with its previously announced underwritten public offering of common shares. The Company issued the additional 900,000 shares at a price to the public of $4.25 per share. All the shares were offered and sold by the Company. The Company closed on the sale of the 900,000 optional shares of common stock on December 30, 2024.

The Company intends to use the net proceeds from this offering for working capital, capital expenditures and other general corporate purposes.

Lake Street Capital Markets, LLC acted as the sole book-running manager for the offering. All shares granted to the underwriter have now been offered and sold.

A shelf registration statement on Form S-3 relating to the securities being sold in this offering was declared effective by the Securities and Exchange Commission (the “SEC”) on August 31, 2022. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained by visiting the SEC’s website at www.sec.gov, or from Lake Street Capital Markets, LLC, Attn: Syndicate Department, 920 Second Avenue South, Suite 700, Minneapolis, MN 55402, by calling (612) 326-1305.

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 state or 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 jurisdiction.

About the Company

Inotiv, Inc. is a leading contract research organization dedicated to providing nonclinical and analytical drug discovery and development services and research models and related products and services. The Company’s products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development, all while increasing efficiency, improving data, and reducing the cost of taking new drugs and medical devices to market. Inotiv is committed to supporting discovery and development objectives as well as helping researchers realize the full potential of their critical research and development projects, all while working together to build a healthier and safer world.

Forward-Looking Statements

This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, statements regarding our expectations about the use of proceeds from the public offering.  These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including those factors detailed in the Company's filings with the U.S. Securities and Exchange Commission. Further discussion of these risks, uncertainties, and other matters can be found in the Risk Factors detailed in our Annual Report on Form 10-K as filed on December 4, 2024, as well as other filings we make with the Securities and Exchange Commission.

Company Contact	Investor Relations
Inotiv, Inc.	LifeSci Advisors
Beth A. Taylor, Chief Financial Officer	Steve Halper
(765) 497-8381	(646) 876-6455
Beth.Taylor@inotiv.com	shalper@lifesciadvisors.com

FAQ

How much did Inotiv (NOTV) raise in its December 2024 equity offering?

Inotiv raised approximately $3.6 million in net proceeds through the issuance of 900,000 additional common shares at $4.25 per share.

What is the price per share for NOTV's December 2024 optional share offering?

The optional shares in the offering were priced at $4.25 per share.

How will Inotiv (NOTV) use the proceeds from its December 2024 equity offering?

Inotiv intends to use the net proceeds for working capital, capital expenditures, and other general corporate purposes.

Who managed Inotiv's (NOTV) December 2024 equity offering?

Lake Street Capital Markets, acted as the sole book-running manager for the offering.

How many additional shares did Inotiv (NOTV) issue in its December 2024 offering?

Inotiv issued 900,000 additional shares of common stock.