Revelation Biosciences Inc. Announces Exercise of Warrants for $4 Million in Gross Proceeds

Rhea-AI Summary

Revelation Biosciences (NASDAQ: REVB) announced a definitive agreement for the immediate exercise of outstanding warrants to purchase up to 4,064,040 shares of common stock at $1.00 per share, generating $4 million in gross proceeds. The exercising holders will receive new warrants in a private placement: Class F warrants for up to 4,064,040 shares and Class G warrants for up to 6,096,060 shares, both at $1.00 per share. Class F warrants have a 2-year term while Class G warrants have a 5-year term. Roth Capital Partners is acting as financial advisor for this transaction.

Positive

• Immediate cash injection of $4 million through warrant exercise
• Successfully secured additional funding without traditional debt

Negative

• Potential future dilution from new warrants totaling 10,160,100 shares
• New warrants priced at $1.00, same as current exercise price, offering no premium

Insights

Financial Analyst

The warrant exercise represents a significant capital injection of $4 million for Revelation Biosciences, strengthening their balance sheet. The transaction includes two new warrant classes: Class F warrants for 4.06M shares and Class G warrants for 6.09M shares, both at $1.00 per share. This structured deal provides immediate capital while creating potential for additional future funding through the new warrants.

The warrant exercise price of $1.00 suggests investor confidence, though it will result in dilution. The company's commitment to file an S-3 registration within 20 days demonstrates transparency and provides future liquidity for warrant holders. For a company with a $3.5M market cap, this financing is substantial and could fund continued clinical development efforts in trained immunity therapeutics.

SAN DIEGO--(BUSINESS WIRE)-- Revelation Biosciences, Inc. (NASDAQ: REVB) (the “Company” or “Revelation”), a clinical-stage life sciences company that is focused on harnessing the power of trained immunity for the treatment of disease, announced today the entry into a definitive agreement for the immediate exercise of certain outstanding warrants to purchase up to an aggregate of 4,064,040 shares of common stock, issued by the Company on August 22, 2024 (the “Existing Warrants”), at the exercise price of $1.00 per share. The shares of common stock issuable upon exercise of the Existing Warrants are registered pursuant to an effective registration statement on Form S-3 (File No. 333-281909). The closing of the offering is expected to occur on or about December 3, 2024, subject to satisfaction of customary closing conditions.

Roth Capital Partners is acting as the Company’s financial advisor for this transaction.

In consideration for the immediate exercise of the warrants for cash, the exercising holders will receive new warrants to purchase shares of common stock in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "1933 Act"). The Class F new warrants will be exercisable into an aggregate of up to 4,064,040 shares of common stock, will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares issuable upon exercise of the new warrants at an exercise price of $1.00 per share, and have a term of exercise equal to two years after the stockholder approval date. The Class G new warrants will be exercisable into an aggregate of up to 6,096,060 shares of common stock, will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares issuable upon exercise of the new warrants at an exercise price of $1.00 per share, and have a term of exercise equal to five years after the stockholder approval date. The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended, or applicable under state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. As part of the transaction, the Company has agreed to file a resale registration statement on Form S-3 with the Securities and Exchange Commission within 20 days of the closing to register the resale of the shares of common stock underlying the new warrants issued in the private placement.

This press release does 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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Revelation Biosciences Inc.

Revelation Biosciences, Inc. is a clinical stage life sciences company focused on harnessing the power of trained immunity for the prevention and treatment of disease using its proprietary formulation Gemini. Revelation has multiple ongoing programs to evaluate Gemini, including as a prevention for acute kidney injury, as a prevention for post-surgical infection, and for the treatment of chronic kidney disease.

For more information on Revelation, please visit www.RevBiosciences.com.

Forward-Looking Statement

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These forward-looking statements are generally identified by the words "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions. We caution investors that forward-looking statements are based on management’s expectations and are only predictions or statements of current expectations and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those anticipated by the forward-looking statements. Revelation cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the ability of Revelation to meet its financial and strategic goals, due to, among other things, competition; the ability of Revelation to grow and manage growth profitability and retain its key employees; the possibility that the Revelation may be adversely affected by other economic, business, and/or competitive factors; risks relating to the successful development of Revelation’s product candidates; the ability to successfully complete planned clinical studies of its product candidates; the risk that we may not fully enroll our clinical studies or enrollment will take longer than expected; risks relating to the occurrence of adverse safety events and/or unexpected concerns that may arise from data or analysis from our clinical studies; changes in applicable laws or regulations; expected initiation of the clinical studies, the timing of clinical data; the outcome of the clinical data, including whether the results of such study is positive or whether it can be replicated; the outcome of data collected, including whether the results of such data and/or correlation can be replicated; the timing, costs, conduct and outcome of our other clinical studies; the anticipated treatment of future clinical data by the FDA, the EMA or other regulatory authorities, including whether such data will be sufficient for approval; the success of future development activities for its product candidates; potential indications for which product candidates may be developed; the ability of Revelation to maintain the listing of its securities on NASDAQ; the expected duration over which Revelation’s balances will fund its operations; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the SEC by Revelation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241203455963/en/

Chester Zygmont, III

Chief Financial Officer

Revelation Biosciences Inc.

Email: czygmont@revbiosciences.com

Source: Revelation Biosciences, Inc.

FAQ

How much gross proceeds did Revelation Biosciences (REVB) raise from warrant exercise?

Revelation Biosciences raised $4 million in gross proceeds from the exercise of warrants at $1.00 per share.

What are the terms of the new warrants issued by REVB in December 2024?

REVB issued two classes of new warrants: Class F warrants for 4,064,040 shares with a 2-year term and Class G warrants for 6,096,060 shares with a 5-year term, both at $1.00 exercise price.

When will the new REVB warrants become exercisable?

The new warrants will become exercisable upon stockholder approval of the issuance of shares issuable upon exercise of the warrants.