PainReform Announces Closing of $20.0 Million Initial Public Offering

Rhea-AI Summary

PainReform Ltd. (NASDAQ:PRFX) closed its initial public offering on September 3, 2020, offering 2,500,000 units at $8.00 each, yielding approximately $20 million before expenses. Each unit comprises one Ordinary Share and one Warrant for an additional share, separable upon issuance. The Ordinary Shares began trading on Nasdaq on September 1, 2020. Underwriters have a 45-day option to purchase up to 375,000 additional shares or warrants to cover over-allotments. PainReform focuses on reformulating established therapeutics, with its lead product PRF-110 targeting post-operative pain relief.

Positive

• Successfully raised approximately $20 million from the IPO, enhancing financial resources for business operations and product development.
• The offering allows the company to potentially expand its market presence and invest in the clinical development of PRF-110.

Negative

• Potential dilution of shares if the underwriters exercise their over-allotment option.
• Warrants have an exercise price above the IPO price, potentially limiting immediate capital influx from warrant exercises.

HERZLIYA, ISRAEL / ACCESSWIRE / September 9, 2020 / PainReform Ltd. (NASDAQ:PRFX) ("PainReform" or the "Company"), a clinical stage specialty pharmaceutical company focused on the reformulation of established therapeutics, today announced the closing on September 3, 2020 of its initial public offering of 2,500,000 units at a price of $8.00 per unit. Each unit consisted of one Ordinary Share and one Warrant to purchase one Ordinary Share. The Ordinary Shares and Warrants were immediately separable from the units and were issued separately. The Ordinary Shares began trading on the Nasdaq Capital Market on September 1, 2020 under the symbol "PRFX". The Warrants are exercisable immediately, expire five years from the date of issuance and have an exercise price of $8.80 per share. PainReform received gross proceeds of approximately $20.0 million, before deducting underwriting discounts and commissions and other estimated offering expenses.

Maxim Group LLC and Joseph Gunnar & Co., LLC acted as joint book-runners for the offering.

PainReform has granted the underwriters a 45-day option to purchase up to an additional 375,000 Ordinary Shares and/or Warrants to purchase 375,000 Ordinary Shares, or any combination thereof, to cover over-allotments, if any.

The offering was conducted pursuant to the Company's registration statement on Form F-1 (File No. 333-239576) previously filed with and subsequently declared effective by the Securities and Exchange Commission ("SEC"). A prospectus relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. Electronic copies of the prospectus relating to this offering may be obtained from Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at (212) 895-3745.

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, any security 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 PainReform

PainReform is a clinical stage specialty pharmaceutical company focused on the reformulation of established therapeutics. PRF-110, the Company's lead product, is based on the local anesthetic ropivacaine, targeting the post-operative pain relief market. PRF-110 is an oil-based, viscous, clear solution that is deposited directly into the surgical wound bed prior to closure to provide localized and extended post-operative analgesia. The Company's proprietary extended release drug-delivery system is designed to provide an extended period of post-surgical pain relief without the need for repeated dose administration while reducing the potential need for the use of opiates.

Contact:

Crescendo Communications, LLC
Tel: 212-671-1021
Email: prfx@crescendo-ir.com

SOURCE: PainReform Ltd.

View source version on accesswire.com:
https://www.accesswire.com/605428/PainReform-Announces-Closing-of-200-Million-Initial-Public-Offering

FAQ

What was the size of PainReform's IPO?

PainReform's IPO consisted of 2,500,000 units priced at $8.00 each, totaling approximately $20 million in gross proceeds.

When did PainReform's Ordinary Shares begin trading?

PainReform's Ordinary Shares began trading on the Nasdaq Capital Market on September 1, 2020.

What does each unit in the IPO consist of?

Each unit in the IPO consists of one Ordinary Share and one Warrant to purchase one additional Ordinary Share.

What is the exercise price for the warrants issued in the IPO?

The warrants have an exercise price of $8.80 per share and expire five years from the date of issuance.

What is the intended use of funds raised from the IPO?

Funds from the IPO will enhance PainReform's financial resources for business operations and the development of its lead product, PRF-110.