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ProPhase Labs Announces Pricing of Public Offering of Common Stock

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ProPhase Labs (NASDAQ: PRPH) has announced the pricing of its underwritten public offering of 4,170,000 shares of common stock at $0.72 per share, aiming to raise approximately $3 million in gross proceeds before deducting underwriting discounts and offering expenses. The company has granted underwriters a 45-day option to purchase up to an additional 625,500 shares. The offering is expected to close on November 12, 2024. ProPhase plans to use the proceeds for working capital, general corporate purposes, capital expenditures, product development, and potential acquisitions. ThinkEquity is serving as the sole book-running manager for the offering.

ProPhase Labs (NASDAQ: PRPH) ha annunciato il prezzo della sua offerta pubblica sottoscritta di 4.170.000 azioni di azioni ordinarie a $0,72 per azione, con l'obiettivo di raccogliere circa $3 milioni in proventi lordi prima di dedurre gli sconti di sottoscrizione e le spese di offerta. L'azienda ha concesso ai sottoscrittori un'opzione di acquisto per ulteriori 625.500 azioni valida per 45 giorni. Si prevede che l'offerta si concluda il 12 novembre 2024. ProPhase intende utilizzare i proventi per il capitale circolante, fini aziendali generali, spese in conto capitale, sviluppo di prodotti e potenziali acquisizioni. ThinkEquity funge da unico gestore della registrazione per l'offerta.

ProPhase Labs (NASDAQ: PRPH) ha anunciado el precio de su oferta pública suscrita de 4.170.000 acciones de acciones comunes a $0,72 por acción, con el objetivo de recaudar aproximadamente $3 millones en ingresos brutos antes de deducir los descuentos de suscripción y los gastos de la oferta. La compañía ha otorgado a los suscriptores una opción de 45 días para comprar hasta 625.500 acciones adicionales. Se espera que la oferta se cierre el 12 de noviembre de 2024. ProPhase planea utilizar los ingresos para capital de trabajo, fines corporativos generales, gastos de capital, desarrollo de productos y posibles adquisiciones. ThinkEquity actúa como el único administrador de libros para la oferta.

ProPhase Labs (NASDAQ: PRPH)는 4,170,000주의 보통주 공모가를 주당 $0.72로 책정했다고 발표했습니다. 이는 인수 수수료 및 공모 비용을 공제하기 전 약 $3백만의 총 수익을 모금하는 것을 목표로 합니다. 회사는 인수인에게 추가로 625,500주를 구매할 수 있는 45일간의 옵션을 부여했습니다. 이 공모는 2024년 11월 12일에 종료될 것으로 예상됩니다. ProPhase는 수익금을 운영 자본, 일반 회사 용도, 자본 지출, 제품 개발 및 잠재적인 인수를 위해 사용할 계획입니다. ThinkEquity는 이번 공모의 단독 북 관리자로 활동하고 있습니다.

ProPhase Labs (NASDAQ: PRPH) a annoncé le prix de son offre publique souscrite de 4.170.000 actions d'actions ordinaires au prix de 0,72 $ par action, visant à lever environ 3 millions $ en produits bruts avant déduction des remises de souscription et des frais d'offre. La société a accordé aux souscripteurs une option de 45 jours pour acheter jusqu'à 625.500 actions supplémentaires. L'offre devrait se clôturer le 12 novembre 2024. ProPhase prévoit d'utiliser les produits pour le fonds de roulement, les objectifs d'entreprise généraux, les dépenses d'investissement, le développement de produits et de potentielles acquisitions. ThinkEquity agit en tant que gestionnaire de livres exclusif pour l'offre.

ProPhase Labs (NASDAQ: PRPH) hat die Preisgestaltung für ihr gezeichnetes öffentliches Angebot von 4.170.000 Aktien zu 0,72 $ pro Aktie bekannt gegeben, mit dem Ziel, rund 3 Millionen $ an Bruttoerlösen vor Abzug der Underwriting-Rabatte und Angebotskosten zu erzielen. Das Unternehmen hat den Underwritern die Option eingeräumt, innerhalb von 45 Tagen bis zu weitere 625.500 Aktien zu erwerben. Es wird erwartet, dass das Angebot am 12. November 2024 abschließt. ProPhase plant, die Erlöse für Betriebskapital, allgemeine Unternehmenszwecke, Investitionen in Sachanlagen, Produktentwicklung und mögliche Akquisitionen zu verwenden. ThinkEquity fungiert als einziger Buchführungsmanger für das Angebot.

Positive
  • Secured $3 million in gross proceeds through public offering
  • Potential for additional capital through 625,500 share over-allotment option
Negative
  • Significant shareholder dilution through issuance of 4.17 million new shares
  • Low offering price of $0.72 per share indicates weak market conditions
  • Additional dilution possible if over-allotment option is exercised

Insights

This public offering represents significant dilution for existing shareholders, with $3 million being raised at a substantial discount to market price. The offering price of $0.72 per share indicates challenging market conditions and potential cash flow concerns. The dilution could increase further if the over-allotment option for additional 625,500 shares is exercised.

The broad scope of intended use of proceeds, including working capital, acquisitions and product development, suggests a strategic but non-specific capital allocation plan. This flexibility could be viewed as either an opportunity for strategic growth or a concern about immediate cash needs. The involvement of ThinkEquity as the sole book-runner for a relatively small offering may indicate institutional interest.

GARDEN CITY, NY, Nov. 07, 2024 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH) (“ProPhase” or the “Company”), a next-generation biotech, genomics and diagnostics company, today announced the pricing of its underwritten public offering of 4,170,000 shares of common stock. Each share of common stock is being sold at a public offering price of $0.72 per share, for gross proceeds of approximately $3 million, before deducting underwriting discounts, and offering expenses. All of the shares are being offered by the Company. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 625,500 shares of common stock at the public offering price less discounts, to cover over-allotments. The offering is expected to close on November 12, 2024, subject to satisfaction of customary closing conditions.

The Company intends to use the net proceeds from this offering for working capital and general corporate purposes, which may include capital expenditures, product development and commercialization expenditures, and acquisitions of companies, businesses, technologies and products within and outside the diagnostic services, genomics and consumer products industry.

ThinkEquity is acting as sole book-running manager for the offering.

The securities will be offered and sold pursuant to a shelf registration statement on Form S-3 (File No. 333-260848), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 5, 2021 and declared effective on November 12, 2021. The offering will be made only by means of a written prospectus. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC on its website at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004.

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 other 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 other jurisdiction. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.

About ProPhase Labs

ProPhase Labs, Inc. (Nasdaq: PRPH) is a next-generation biotech, genomics and diagnostics company. Our goal is to create a healthier world with bold action and the power of insight. We believe we are revolutionizing healthcare with industry-leading Whole Genome Sequencing solutions, while developing potential game changer diagnostics and therapeutics in the fight against cancer. This includes a potentially life-saving cancer test focused on early detection of esophageal cancer and potential breakthrough cancer therapeutics with novel mechanisms of action. Our world-class CLIA labs and cutting-edge diagnostic technology provide wellness solutions for healthcare providers and consumers. We develop, manufacture, and commercialize health and wellness solutions to enable people to live their best lives. We are committed to executional excellence, smart diversification, and a synergistic, omni-channel approach. ProPhase Labs' subsidiaries and their strategic synergies highlight our potential for long-term value.

For more information, visit www.ProPhaseLabs.com

Forward Looking Statements

This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms and similar expressions intended to identify forward-looking statements. These statements include statements related to the expected completion of the offering described herein and the intended use of proceeds. The Company cautions readers that forward-looking statements are based on management’s expectations and assumptions as of the date of this release and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, risks related to prevailing market conditions, the impact of general economic, industry or political conditions in the United States, and the Company’s ability to satisfy customary closing conditions associated with the offering. Management believes that these forward-looking statements are reasonable as and when made. The Company undertakes no obligation to update forward-looking statements except as required by applicable securities laws.

Media Relations and Institutional Investor Contact:

ProPhase Labs, Inc.
267-880-1111
investorrelations@prophaselabs.com

Retail Investor Relations Contact:

Renmark Financial Communications
John Boidman
514-939-3989
Jboidman@renmarkfinancial.com


FAQ

What is the price per share for ProPhase Labs (PRPH) public offering?

ProPhase Labs has priced its public offering at $0.72 per share.

How many shares is ProPhase Labs (PRPH) offering in November 2024?

ProPhase Labs is offering 4,170,000 shares of common stock, with an additional over-allotment option of 625,500 shares.

How much money is ProPhase Labs (PRPH) raising in its public offering?

ProPhase Labs aims to raise approximately $3 million in gross proceeds before deducting underwriting discounts and offering expenses.

When will ProPhase Labs (PRPH) public offering close?

The public offering is expected to close on November 12, 2024, subject to customary closing conditions.

ProPhase Labs, Inc.

NASDAQ:PRPH

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