Processa Pharmaceuticals Announces Pricing of $5 Million Public Offering Priced At-The-Market Under Nasdaq Rules
Processa Pharmaceuticals (PCSA) has announced the pricing of a $5 million public offering, featuring 8,050,672 shares of common stock with accompanying warrants. The offering includes participation from the company's CEO, board members, existing institutional investors, and a healthcare-focused institutional investor.
The offering is priced at $0.615 per share for institutional investors and $0.7975 for company insiders, with both Series A and Series B warrants included. Series A warrants allow purchase of up to 8,050,672 shares at $0.65 per share with a five-year term, while Series B warrants cover 4,025,336 shares at $0.65 per share with an eighteen-month term.
The closing is expected around January 29, 2025, with A.G.P./Alliance Global Partners acting as sole placement agent. The company must seek stockholder approval within 90 days for the issuance of shares upon warrant exercise.
Processa Pharmaceuticals (PCSA) ha annunciato la valutazione di un'offerta pubblica di 5 milioni di dollari, comprendente 8.050.672 azioni ordinarie con relativi warrant. L'offerta include la partecipazione del CEO dell'azienda, di membri del consiglio, di investitori istituzionali già esistenti e di un investitore istituzionale focalizzato sulla sanità.
L'offerta è fissata a 0,615 dollari per azione per gli investitori istituzionali e a 0,7975 dollari per i membri dell'azienda, con l'inclusione di warrant di Serie A e Serie B. I warrant di Serie A consentono l'acquisto di un massimo di 8.050.672 azioni a 0,65 dollari per azione con un termine di cinque anni, mentre i warrant di Serie B coprono 4.025.336 azioni a 0,65 dollari per azione con un termine di diciotto mesi.
La chiusura è prevista intorno al 29 gennaio 2025, con A.G.P./Alliance Global Partners che agisce come unico agente di collocamento. L'azienda deve richiedere l'approvazione degli azionisti entro 90 giorni per l'emissione di azioni al momento dell'esercizio dei warrant.
Processa Pharmaceuticals (PCSA) ha anunciado el precio de una oferta pública de 5 millones de dólares, que incluye 8,050,672 acciones ordinarias con garantías adjuntas. La oferta cuenta con la participación del CEO de la empresa, miembros de la junta, inversores institucionales existentes y un inversor institucional enfocado en la atención médica.
El precio de la oferta es de 0.615 dólares por acción para inversores institucionales y de 0.7975 dólares para los miembros de la empresa, incluyendo garantías de Series A y Series B. Las garantías de Serie A permiten la compra de hasta 8,050,672 acciones a 0.65 dólares por acción con un plazo de cinco años, mientras que las garantías de Serie B cubren 4,025,336 acciones a 0.65 dólares por acción con un plazo de dieciocho meses.
Se espera que el cierre se realice alrededor del 29 de enero de 2025, con A.G.P./Alliance Global Partners actuando como agente de colocación exclusivo. La empresa debe buscar la aprobación de los accionistas dentro de los 90 días para la emisión de acciones tras el ejercicio de las garantías.
프로세사 제약(PCSA)는 8,050,672주 보통주 및 관련 워런트를 포함한 500만 달러 공모가에 대한 가격 발표를 하였습니다. 이 공모에는 회사의 CEO, 이사, 기존 기관 투자자 및 헬스케어에 초점을 맞춘 기관 투자자가 참여하고 있습니다.
공모가는 기관 투자자에게는 주당 0.615달러, 회사 내부자에게는 주당 0.7975달러로 설정되어 있으며, A 시리즈 및 B 시리즈 워런트가 포함됩니다. A 시리즈 워런트는 주당 0.65달러로 최대 8,050,672주를 구매할 수 있도록 하며, 유효 기간은 5년입니다. B 시리즈 워런트는 4,025,336주를 주당 0.65달러에 보호하며, 유효 기간은 18개월입니다.
종료는 2025년 1월 29일경으로 예상되며, A.G.P./Alliance Global Partners가 단독 배치 에이전트로 활동합니다. 회사는 워런트 행사 시 주식 발행을 위해 90일 이내에 주주 승인을 요청해야 합니다.
Processa Pharmaceuticals (PCSA) a annoncé le prix d'une offre publique de 5 millions de dollars, comprenant 8 050 672 actions ordinaires accompagnées de warrants. L'offre inclut la participation du PDG de l'entreprise, de membres du conseil d'administration, d'investisseurs institutionnels existants et d'un investisseur institutionnel axé sur la santé.
Le prix de l'offre est de 0,615 dollar par action pour les investisseurs institutionnels et de 0,7975 dollar pour les insiders de l'entreprise, avec l'inclusion de warrants de série A et de série B. Les warrants de série A permettent l'achat d'un maximum de 8 050 672 actions à 0,65 dollar par action avec une durée de cinq ans, tandis que les warrants de série B portent sur 4 025 336 actions à 0,65 dollar par action avec une durée de dix-huit mois.
La clôture est attendue aux alentours du 29 janvier 2025, A.G.P./Alliance Global Partners agissant en tant qu'agent de placement exclusif. L'entreprise doit demander l'approbation des actionnaires dans les 90 jours pour l'émission d'actions lors de l'exercice des warrants.
Processa Pharmaceuticals (PCSA) hat die Preisgestaltung einer öffentlichen Platzierung in Höhe von 5 Millionen Dollar bekannt gegeben, die 8.050.672 Stammaktien mit dazugehörigen Warrants umfasst. An der Platzierung nehmen der CEO des Unternehmens, Mitglieder des Vorstands, bestehende institutionelle Investoren sowie ein auf Gesundheitswesen fokussierter institutioneller Investor teil.
Der Preis der Platzierung beträgt 0,615 Dollar je Aktie für institutionelle Investoren und 0,7975 Dollar für Unternehmensinsider, wobei sowohl Serie A- als auch Serie B-Warrants enthalten sind. Serie A-Warrants ermöglichen den Kauf von bis zu 8.050.672 Aktien zu einem Preis von 0,65 Dollar je Aktie mit einer Laufzeit von fünf Jahren, während Serie B-Warrants für 4.025.336 Aktien zu einem Preis von 0,65 Dollar je Aktie mit einer Laufzeit von achtzehn Monaten gelten.
Der Abschluss wird voraussichtlich um den 29. Januar 2025 stattfinden, wobei A.G.P./Alliance Global Partners als alleiniger Platzierungsagent fungiert. Das Unternehmen muss innerhalb von 90 Tagen die Zustimmung der Aktionäre für die Ausgabe von Aktien bei der Ausübung der Warrants einholen.
- Insider participation from CEO and board members showing confidence
- Healthcare-focused institutional investor participation
- Successful pricing of $5 million offering
- Offering price significantly below market value
- Significant potential dilution from warrants (up to 12,076,008 additional shares)
- Uncertainty regarding stockholder approval for warrant exercises
- Additional stockholder meetings required if initial approval fails
Insights
This
Insider Confidence Signal: The participation of the CEO and board members at a
Warrant Structure & Dilution Impact: The offering includes two warrant tranches:
- Series A warrants for 8.05M shares with 5-year term
- Series B warrants for 4.03M shares with 18-month term
Regulatory & Execution Risk: The requirement for shareholder approval adds an element of uncertainty and complexity. The company's commitment to hold repeated shareholder meetings every 90 days until approval is obtained suggests determination but also highlights the critical nature of this approval for the offering's success.
Strategic Implications: For a clinical-stage pharmaceutical company, this financing provides essential capital for advancing their chemotherapeutic drug development pipeline. However, the pricing near market levels and warrant-heavy structure indicates challenging market conditions for biotech financing, though the insider participation at a premium partially mitigates these concerns.
HANOVER, MD, Jan. 27, 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, today announced the pricing of its “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 Series A warrants will have an exercise price of
The gross proceeds from the offering, before deducting placement agent fees and other offering expenses payable by the Company, are expected to be
The Company intends to promptly, and in no event later than ninety (90) days after the consummation of the offering, seek stockholder approval for the issuance of shares of common stock issuable upon exercise of the Series A warrants and Series B warrants, but cannot assure that such stockholder approval will be obtained. The Company has agreed with the investors in this offering that, if it does not obtain stockholder approval for the issuance of the shares of common stock upon exercise of the Series A warrants and Series B warrants at the first stockholder meeting for such purpose after the offering, the Company will call a stockholder meeting every ninety (90) days thereafter until the earlier of the date it obtains such approval or the Series A warrants and Series B warrants are no longer outstanding.
A.G.P./Alliance Global Partners is acting 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 is being made only by means of a prospectus forming part of the effective registration statement relating to the offering. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained, when available, 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.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements," including with respect to the public offering. No assurance can be given that the public offering discussed above will be completed. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements in this statement are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include, but are not limited to, those risks and uncertainties related to market and other conditions and satisfaction of customary closing conditions related to the public offering as well as those set forth in the Company's latest Annual Report on Form 10-K, quarterly report on Form 10-Q, registration statement on Form S-1 filed with the SEC and the preliminary prospectus included therein, and other filings made by the Company from time to time with the SEC. Copies of the registration statement can be accessed by visiting the SEC website at www.sec.gov. All forward-looking statements contained in this press release speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
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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