Sunshine Biopharma, Inc. Announces Pricing of $10.0 Million Underwritten Public Offering

Rhea-AI Summary

Sunshine Biopharma, Inc. (NASDAQ:SBFM) announced a firm commitment underwritten public offering with gross proceeds of approximately $10.0 million. The offering includes Units comprising common stock, Pre-Funded Warrants, Series A Warrants, and Series B Warrants. Aegis Capital Corp. has a 45-day option to purchase additional shares. The offering price per Unit is $0.14, with various exercise prices for the warrants.

Insights

Financial Analyst

The capital raise through a public offering by Sunshine Biopharma, Inc. is a strategic move to secure funding for its operations and research endeavors. The gross proceeds of approximately $10.0 million, before fees and expenses, indicate a significant injection of funds into the company's financials. The structure of the offering, which includes common stock, Pre-Funded Warrants and Series A and B Warrants, provides investors with a variety of investment instruments, each with different risk profiles and potential returns.

From a financial perspective, the pricing of the Units at $0.14 suggests a potential discount to the current market price, which is a common strategy to incentivize participation in the offering. However, the exercise prices for the Series A and B Warrants are set at $2.10 and $2.38 respectively, which are substantially higher than the unit price. This indicates an expectation of future stock price appreciation, perhaps due to anticipated positive developments in the company's pipeline or overall business performance.

Investors will be watching closely to see if Aegis Capital Corp. exercises its over-allotment option, which could indicate strong demand for the offering and confidence in the company's prospects. The capital raised will likely be scrutinized for its allocation towards advancing the company's oncology and antiviral programs, which could be pivotal in determining the company's future growth trajectory and stock performance.

Market Research Analyst

Assessing the impact of Sunshine Biopharma's public offering on the market requires an examination of the biopharmaceutical sector's current trends and investor sentiment. The offering's success will be influenced by the broader market's appetite for biotech investments, which has historically been volatile and influenced by both macroeconomic factors and industry-specific developments such as clinical trial outcomes and regulatory approvals.

Given the company's focus on life-saving medicines in oncology and antivirals, the funding could accelerate the development of high-demand therapeutics, potentially positioning Sunshine Biopharma favorably in the market. The biotech sector is known for its high R&D costs and long timelines to market, making the efficient use of raised capital crucial. The company's ability to meet its milestones and manage cash burn rates will be instrumental in maintaining investor confidence and sustaining its market position.

Furthermore, the offering's structure, with its mix of common stock and warrants, could attract a diverse range of investors, from those seeking immediate equity exposure to those looking for longer-term speculative opportunities via the warrants. This diversity can contribute to trading volume and liquidity in the company's stock, which is beneficial for the overall market ecosystem.

Legal Expert

The legal implications of Sunshine Biopharma's underwritten public offering involve a series of regulatory compliance measures. The company must adhere to SEC regulations and requirements for public offerings, including the disclosure of pertinent information that could affect investment decisions. The inclusion of Pre-Funded Warrants is a noteworthy element, as it allows investors to purchase shares at a later date, potentially circumventing the dilutive effect of immediate stock issuance.

Moreover, the grant of an over-allotment option to Aegis Capital Corp. is aligned with standard underwriting practices, allowing the underwriter to manage excess demand and stabilize the stock price post-offering. Legal scrutiny will ensure that the offering's terms, including the exercise prices of the warrants and the conditions under which they can be exercised, are transparent and equitable to all stakeholders.

It is also essential that all promotional material and communications regarding the offering are free from misleading statements, as any misrepresentation could lead to legal repercussions and damage investor trust. Compliance with these legal frameworks is critical to the offering's success and the company's reputation in the market.

NEW YORK, NY / ACCESSWIRE / February 13, 2024 / Sunshine Biopharma, Inc. (NASDAQ:SBFM) (the "Company"), a pharmaceutical company offering and researching life-saving medicines in a variety of therapeutic areas including oncology and antivirals, today announced the pricing of a firm commitment underwritten public offering with gross proceeds to the Company expected to be approximately $10.0 million, before deducting underwriting fees and other estimated offering expenses payable by the Company.

The offering consists of 71,428,571 Units, each consisting of one (1) share of common stock or Pre-Funded Warrant to purchase one share of common stock and 0.1 Series A Warrants to purchase one (1) share of common stock per warrant, and 0.2 Series B Warrants to purchase one (1) share of common stock per warrant. The public offering price per Unit is $0.14 (or $0.139 for each Unit with a Pre-Funded Warrant, which is equal to the public offering price per Unit with a share of common stock to be sold in the offering minus an exercise price of $0.001 per Pre-Funded Warrant). The Pre-Funded Warrants will be immediately exercisable and may be exercised at any time until exercised in full. The initial exercise price of each Series A Warrant is $2.10 per share of common stock or pursuant to an alternative cashless exercise option. The Series A Warrants are exercisable immediately and expire 30 months after the initial issuance date. The initial exercise price of each Series B Warrant is $2.38 per share of common stock. The Series B Warrants are exercisable immediately and expire 60 months after the initial issuance date.

In addition, the Company has granted Aegis Capital Corp. ("Aegis") a 45-day option to purchase up to an additional 15% of the total number of shares of common stock and/or Pre-Funded Warrants and/or Series A Warrants and/or Series B Warrants sold in the offering, solely to cover over-allotments, if any.

Aggregate gross proceeds to the Company are expected to be approximately $10.0 million. The transaction is expected to close on or about February 15, 2024, subject to the satisfaction of customary closing conditions. The Company expects to use the net proceeds from the offering for general corporate purposes and working capital.

Aegis Capital Corp. is acting as the sole book-running manager for the offering. Sichenzia Ross Ference Carmel LLP is acting as counsel to the Company. Kaufman & Canoles, P.C. is acting as U.S. counsel to Aegis Capital Corp.

A registration statement on Form S-1 (No. 333-276817) previously filed with the U.S. Securities and Exchange Commission (the "SEC") on February 1, 2024, as amended, was declared effective by the SEC on February 12, 2024. The offering is being made only by means of a prospectus. A final prospectus describing the terms of the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Electronic copies of the final prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at +1 (212) 813-1010. Before investing in this offering, interested parties should read in their entirety the prospectus, which provides more information about the Company and such offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Sunshine Biopharma, Inc.

Sunshine Biopharma through its subsidiary Nora Pharma Inc. has 51 generic prescription drugs on the market in Canada and 32 additional drugs scheduled to be launched in Canada in 2024 and 2025. In addition, Sunshine Biopharma is conducting a proprietary drug development program which is comprised of (i) K1.1 mRNA for liver cancer, and (ii) PLpro protease inhibitor for SARS Coronavirus infections. For more information, please visit: www.sunshinebiopharma.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company's product development and business prospects, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

For Additional Information:

Sunshine Biopharma Contact:
Camille Sebaaly, CFO
Direct Line: 514-814-0464
camille.sebaaly@sunshinebiopharma.com

SOURCE: Sunshine Biopharma, Inc.

View the original press release on accesswire.com

FAQ

What is the ticker symbol of Sunshine Biopharma, Inc.?

The ticker symbol of Sunshine Biopharma, Inc. is SBFM.

How much is the gross proceeds expected to be from the public offering?

The gross proceeds from the public offering are expected to be approximately $10.0 million.

What does each Unit in the offering consist of?

Each Unit in the offering consists of one share of common stock or a Pre-Funded Warrant, 0.1 Series A Warrants, and 0.2 Series B Warrants.

What is the public offering price per Unit?

The public offering price per Unit is $0.14.

How long are the Series A Warrants exercisable for?

The Series A Warrants are exercisable immediately and expire 30 months after the initial issuance date.

What is the 45-day option granted to Aegis Capital Corp.?

Aegis Capital Corp. has a 45-day option to purchase up to an additional 15% of the total number of shares of common stock and/or warrants sold in the offering.