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ProPhase Labs Announces Proposed Public Offering of Common Stock

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ProPhase Labs (NASDAQ: PRPH) has announced plans for an underwritten public offering of common stock and/or pre-funded warrants. The company will grant underwriters a 45-day option to purchase up to an additional 15% of shares to cover over-allotments. ThinkEquity is serving as the sole book-running manager. Proceeds will be used for working capital, general corporate purposes, capital expenditures, product development, and potential acquisitions within and outside the diagnostic services, genomics, and consumer products industry. The offering will be conducted under a shelf registration statement filed with the SEC.

ProPhase Labs (NASDAQ: PRPH) ha annunciato piani per un offerta pubblica sottoscritta di azioni ordinarie e/o warrant prefinanziati. L'azienda concederà agli underwriter un'opzione di 45 giorni per acquistare fino a un ulteriore 15% di azioni per coprire sovrallocazioni. ThinkEquity agirà come unico manager di book-running. I proventi saranno utilizzati per capitale circolante, scopi aziendali generali, spese in conto capitale, sviluppo del prodotto e potenziali acquisizioni all'interno e all'esterno dei settori dei servizi diagnostici, genomica e prodotti per consumatori. L'offerta sarà condotta ai sensi di una dichiarazione di registrazione shelf depositata presso la SEC.

ProPhase Labs (NASDAQ: PRPH) ha anunciado planes para una oferta pública respaldada de acciones ordinarias y/o garantías prefinanciadas. La compañía otorgará a los suscriptores una opción de 45 días para comprar hasta un 15% adicional de acciones para cubrir sobreasignaciones. ThinkEquity actuará como el único gerente de libro. Los ingresos se utilizarán para capital de trabajo, fines corporativos generales, gastos de capital, desarrollo de productos y adquisiciones potenciales dentro y fuera de la industria de servicios diagnósticos, genómica y productos de consumo. La oferta se llevará a cabo bajo una declaración de registro en estante presentada ante la SEC.

ProPhase Labs (NASDAQ: PRPH)는 보통주 및/또는 선취권 보증서를 위한 공모가 제안됨을 발표했습니다. 회사는 언더라이터에게 추가 물량을 충당하기 위해 최대 15%의 주식을 구매할 수 있는 45일 옵션을 부여합니다. ThinkEquity는 단독 북 관리자로 활동하고 있습니다. 수익금은 운영 자본, 일반적인 기업 목적, 자본 지출, 제품 개발 및 진단 서비스, 유전체학 및 소비자 제품 산업 내외의 잠재적인 인수에 사용될 것입니다. 이 공모는 SEC에 제출된 선반 등록 성명을 통해 진행됩니다.

ProPhase Labs (NASDAQ: PRPH) a annoncé des plans pour une offre publique souscrite d'actions ordinaires et/ou de bons de souscription préfinancés. La société accordera aux souscripteurs une option de 45 jours pour acheter jusqu'à 15 % d'actions supplémentaires pour couvrir les surallocations. ThinkEquity agira en tant que gestionnaire principal. Les recettes seront utilisées pour le fonds de roulement, des fins d'entreprise générales, des dépenses d'investissement, le développement de produits et des acquisitions potentielles dans et en dehors des secteurs des services diagnostiques, de la génomique et des produits de consommation. L'offre sera effectuée conformément à un document d'enregistrement de type étagère déposé auprès de la SEC.

ProPhase Labs (NASDAQ: PRPH) hat Pläne für ein unterzeichnetes öffentliches Angebot von Stammaktien und/oder vorfinanzierten Warrants bekannt gegeben. Das Unternehmen wird den Underwritern eine 45-tägige Option gewähren, um bis zu 15% zusätzlich an Aktien zu erwerben, um Überzeichnungen abzudecken. ThinkEquity fungiert als alleiniger Book-Running-Manager. Die Erlöse werden für Betriebskapital, allgemeine Unternehmenszwecke, Investitionsausgaben, Produktentwicklung und mögliche Akquisitionen innerhalb und außerhalb der Diagnoseservices, Genomik und Konsumgüterindustrie verwendet.

Positive
  • Potential for capital expansion and business growth through new funding
  • Flexibility in use of proceeds for various strategic initiatives
  • Valid shelf registration statement already in place
Negative
  • Potential dilution of existing shareholders' value
  • Uncertainty in offering completion and final terms
  • Market conditions may affect offering success

Insights

This stock offering announcement signals potential significant dilution for existing shareholders. The lack of specified pricing and volume details creates uncertainty around the dilution impact. For a company with a small market cap of $39.4M, any substantial offering could materially affect share value.

The broad intended use of proceeds, spanning working capital, product development and potential acquisitions, suggests a strategic expansion plan but lacks specific allocation details. This flexibility, while beneficial for management, creates uncertainty for investors regarding the company's immediate priorities and return potential. The inclusion of pre-funded warrants alongside common stock adds complexity to the capital structure and could create additional future dilution pressure.

GARDEN CITY, NY, Nov. 07, 2024 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH), a next-generation biotech, genomics and diagnostics company, today announced that it intends to offer to sell shares of its common stock (and/or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof) in an underwritten public offering. The Company expects to grant the underwriters a 45-day option to purchase up to an additional 15% of the number of shares of common stock and/or Pre-Funded Warrants sold in this offering to cover over-allotments, if any. All of the shares of common stock (and/or Pre-Funded Warrants) are being offered by the Company. The offering is subject to market conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

ProPhase 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 preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

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) (“ProPhase”) 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 whether the Company will consummate the proposed offering of common stock on the expected terms, or at all; the anticipated use of the net proceeds from the offering; and the fact that the Company’s management will have broad discretion in the use of the proceeds from any sale of common stock. 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 purpose of ProPhase Labs (PRPH) public offering announced on November 7, 2024?

The offering aims to raise capital for working capital, general corporate purposes, capital expenditures, product development, and potential acquisitions within and outside their industry sectors.

Who is the underwriter for ProPhase Labs (PRPH) 2024 public offering?

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

What is the over-allotment option in PRPH's November 2024 offering?

The underwriters have a 45-day option to purchase up to an additional 15% of the offered shares and/or Pre-Funded Warrants to cover over-allotments.

What type of securities is ProPhase Labs (PRPH) offering in November 2024?

ProPhase Labs is offering shares of common stock and/or pre-funded warrants through an underwritten public offering.

ProPhase Labs, Inc.

NASDAQ:PRPH

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27.28M
19.08M
17.47%
9.31%
1.08%
Diagnostics & Research
Pharmaceutical Preparations
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