Processa Pharmaceuticals Announces Closing of $5 Million Public Offering Priced At-The-Market Under Nasdaq Rules
Processa Pharmaceuticals (PCSA) has completed its previously announced public offering, raising $5 million in gross proceeds. The offering included 8,050,672 shares of common stock (or pre-funded warrants) with accompanying Series A warrants to purchase up to 8,050,672 shares and Series B warrants for up to 4,025,336 shares.
The offering price was set at $0.615 per share for institutional investors and $0.7975 for the Company's CEO and board members. Notable participants included the Company's CEO, board members, existing institutional investors, and a healthcare-focused institutional investor. A.G.P./Alliance Global Partners served as the sole placement agent for the offering, which was conducted under a Form S-1 registration statement declared effective on January 27, 2025.
Processa Pharmaceuticals (PCSA) ha completato la sua offerta pubblica precedentemente annunciata, raccogliendo 5 milioni di dollari in proventi lordi. L'offerta ha incluso 8.050.672 azioni ordinarie (o warrant pre-finanziati) insieme ai warrant di Serie A per acquistare fino a 8.050.672 azioni e i warrant di Serie B per un massimo di 4.025.336 azioni.
Il prezzo di offerta è stato fissato a 0,615 dollari per azione per gli investitori istituzionali e 0,7975 dollari per il CEO dell'azienda e i membri del consiglio. Tra i partecipanti di rilievo c'erano il CEO dell'azienda, i membri del consiglio, investitori istituzionali esistenti e un investitore istituzionale focalizzato sulla salute. A.G.P./Alliance Global Partners ha operato come unico agente di collocamento per l'offerta, che è stata condotta sotto una dichiarazione di registrazione del Modulo S-1 dichiarata efficace il 27 gennaio 2025.
Processa Pharmaceuticals (PCSA) ha completado su oferta pública previamente anunciada, recaudando 5 millones de dólares en ingresos brutos. La oferta incluyó 8.050.672 acciones ordinarias (o garantías prefinanciadas) con los correspondientes warrants de la Serie A para adquirir hasta 8.050.672 acciones y warrants de la Serie B por un máximo de 4.025.336 acciones.
El precio de la oferta se fijó en 0,615 dólares por acción para los inversores institucionales y 0,7975 dólares para el CEO de la compañía y los miembros de la junta. Participantes destacados incluyeron al CEO de la compañía, miembros de la junta, inversores institucionales existentes y un inversor institucional enfocado en salud. A.G.P./Alliance Global Partners actuó como el único agente de colocación para la oferta, que se llevó a cabo bajo una declaración de registro del Formulario S-1 declarada efectiva el 27 de enero de 2025.
프로세사 제약(PCSA)는 이전에 발표한 공개Oferta를 완료하고 500만 달러의 총 수익을 올렸습니다. 이 Oferta에는 8,050,672주의 보통주(또는 사전 자금 지원 워런트)와 함께 8,050,672주를 구매할 수 있는 A 시리즈 워런트와 최대 4,025,336주를 위한 B 시리즈 워런트가 포함되어 있습니다.
오퍼 가격은 기관 투자자에게 주당 0.615 달러로 책정되었으며, 회사의 CEO와 이사회를 위해 0.7975 달러로 책정되었습니다. 주목할만한 참여자로는 회사의 CEO, 이사회 구성원, 기존 기관 투자자 및 헬스케어 중심의 기관 투자자가 있었습니다. A.G.P./Alliance Global Partners는 이 제안의 단독 배치 에이전트를 맡았으며, 이는 2025년 1월 27일에 효력이 발생한 S-1 등록 양식에 따라 진행되었습니다.
Processa Pharmaceuticals (PCSA) a finalisé son offre publique annoncée précédemment, levant 5 millions de dollars de produits bruts. L'offre comprenait 8 050 672 actions ordinaires (ou bons de souscription préfinancés) accompagnés de bons de souscription de Série A pour acheter jusqu'à 8 050 672 actions et des bons de souscription de Série B pour un maximum de 4 025 336 actions.
Le prix de l'offre a été fixé à 0,615 dollar par action pour les investisseurs institutionnels et 0,7975 dollar pour le PDG de la société et les membres du conseil. Parmi les participants notables figuraient le PDG de l'entreprise, les membres du conseil, les investisseurs institutionnels existants et un investisseur institutionnel axé sur la santé. A.G.P./Alliance Global Partners a agi en tant qu'agent de placement unique pour l'offre, qui a été effectuée sous une déclaration d'enregistrement de formulaire S-1 déclarée effective le 27 janvier 2025.
Processa Pharmaceuticals (PCSA) hat seine zuvor angekündigte öffentliche Angebotsrunde erfolgreich abgeschlossen und 5 Millionen Dollar an Bruttoeinnahmen erzielt. Das Angebot umfasste 8.050.672 Aktien gewöhnlicher Aktien (oder vorfinanzierte Optionen) mit entsprechenden Serie-A-Optionsscheinen zum Kauf von bis zu 8.050.672 Aktien und Serie-B-Optionsscheinen für bis zu 4.025.336 Aktien.
Der Angebotspreis wurde auf 0,615 Dollar pro Aktie für institutionelle Investoren und auf 0,7975 Dollar für den CEO des Unternehmens und die Vorstandsmitglieder festgelegt. Zu den nennenswerten Teilnehmern gehörten der CEO des Unternehmens, Vorstandsmitglieder, bestehende institutionelle Investoren und ein auf Gesundheitswesen fokussierter institutioneller Investor. A.G.P./Alliance Global Partners fungierte als alleiniger Platzierungsagent für das Angebot, das unter einer Pro-Forma-S-1-Registrierungserklärung durchgeführt wurde, die am 27. Januar 2025 für wirksam erklärt wurde.
- Successful completion of $5 million capital raise
- Participation from company insiders (CEO and board members) at a premium price
- Support from existing institutional investors and new healthcare-focused investor
- Significant potential dilution through issuance of shares and multiple series of warrants
- Low offering price indicates weak market position
- Additional dilution possible if warrants are exercised
Insights
The completion of Processa Pharmaceuticals'
The warrant coverage is extensive, with Series A warrants matching the share count 1:1 (8,050,672 shares) and Series B warrants at 0.5:1 (4,025,336 shares). This structure suggests a potential for significant future dilution but also provides additional upside participation for current investors. The involvement of a healthcare-focused institutional investor adds credibility to the offering, indicating sophisticated market participants see value in Processa's clinical pipeline.
The timing and structure of this financing merit attention. Conducting an at-the-market offering typically indicates a company's desire to minimize pricing pressure while maintaining flexibility in execution. For a clinical-stage biotech with ongoing development programs, this
The offering's execution through A.G.P./Alliance Global Partners, a mid-tier investment bank and the "reasonable best efforts" basis suggests some challenges in the current biotech financing environment. However, the successful closing indicates sufficient market interest in Processa's development of next-generation chemotherapeutic drugs with improved efficacy and safety profiles.
HANOVER, Md, Jan. 30, 2025 (GLOBE NEWSWIRE) -- Processa Pharmaceuticals, Inc. (Nasdaq: PCSA) (“Processa” or the “Company”), a clinical-stage pharmaceutical company focused on developing the next generation of chemotherapeutic drugs with improved efficacy and safety, announces the closing of its previously announced “reasonable best efforts” public offering with participation from the Company’s Chief Executive Officer, certain board members, and existing institutional investors of the Company, along with a healthcare focused institutional investor, consisting of 8,050,672 shares of common stock (or pre-funded warrants in lieu thereof) and accompanying Series A warrants to purchase up to 8,050,672 shares of common stock (or pre-funded warrants in lieu thereof) and Series B warrants to purchase up to 4,025,336 shares of common stock at a combined purchase price per share (and accompanying warrants) of
The gross proceeds from the offering, before deducting placement agent fees and other offering expenses payable by the Company, were
A.G.P./Alliance Global Partners acted as the sole placement agent for the offering.
A registration statement on Form S-1 (File No. 333-283986) relating to the offering was declared effective by the Securities and Exchange Commission (the “SEC”) on January 27, 2025. The offering was made only by means of a prospectus forming part of the effective registration statement relating to the offering. A final prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained by contacting A.G.P./Alliance Global Partners at 590 Madison Avenue, 28th Floor, New York, NY 10022, by phone at (212) 624-2060 or e-mail at prospectus@allianceg.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 Processa Pharmaceuticals, Inc.
Processa is a clinical-stage pharmaceutical company focused on developing the Next Generation Chemotherapy (NGC) drugs with improved safety and efficacy. Processa’s NGC drugs are modifications of existing FDA-approved oncology therapies resulting in an alteration of the metabolism and/or distribution of these drugs while maintaining the existing mechanisms of killing the cancer cells. By combining its novel oncology pipeline with proven cancer-killing active molecules and its Regulatory Science Approach, Processa’s strategy is to develop more effective therapy options with improved tolerability for cancer patients through an efficient regulatory path.
For more information, visit our website at www.processapharma.com.
Company Contact:
Patrick Lin
(925) 683-3218
plin@processapharma.com
Investor Relations Contact:
Yvonne Briggs
Alliance Advisors IR
(310) 691-7100
ybriggs@allianceadvisors.com
FAQ
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