Scorpius Holdings, Inc. Announces Closing of Public Offering

Rhea-AI Summary

Scorpius Holdings, Inc. (NYSE American: SCPX), a contract development and manufacturing organization (CDMO), has closed its underwritten public offering of 14,375,000 shares of common stock and/or pre-funded warrants. The offering, priced at $1.00 per share, raised gross proceeds of $14,375,000. This includes the full exercise of the underwriter's over-allotment option. ThinkEquity acted as the sole book-running manager for the offering.

The company plans to use the net proceeds for working capital and general corporate purposes. Scorpius Holdings specializes in rapidly advancing biologic and cell therapy programs, offering analytical testing, process development, and manufacturing services to pharmaceutical and biotech companies at its facilities in San Antonio, TX.

Positive

• Successful closing of public offering, raising $14,375,000 in gross proceeds
• Full exercise of underwriter's over-allotment option, indicating strong demand
• Funds to be used for working capital and general corporate purposes, potentially strengthening the company's financial position

Negative

• Potential dilution of existing shareholders due to the issuance of 14,375,000 new shares
• Offering price of $1.00 per share may be lower than the current market price, potentially impacting stock value

Financial Analyst

Scorpius Holdings' public offering of $14.375 million through the sale of 14,375,000 shares at $1.00 per share is a significant capital raise for the company. This influx of funds will bolster their working capital and provide flexibility for general corporate purposes. However, the offering price of $1.00 per share suggests the company may be facing financial challenges or investor interest.

The full exercise of the underwriter's over-allotment option indicates strong demand for the offering. Yet, the use of pre-funded warrants alongside common stock could imply a complex financial structure, potentially diluting existing shareholders. Investors should closely monitor how effectively Scorpius utilizes this capital to drive growth in its CDMO business, particularly in the competitive biologics and cell therapy sectors.

Biotech Industry Expert

As a CDMO focusing on large molecules, biologics and cell therapies, Scorpius is positioned in a high-growth sector of the pharmaceutical industry. The $14.375 million raised could be important for expanding their capabilities in San Antonio, TX, potentially allowing them to take on more complex and lucrative projects.

However, the relatively small size of this offering for a CDMO suggests Scorpius may be a smaller player in the field. Investors should assess how this capital infusion will enhance Scorpius' competitive edge against larger, more established CDMOs. The company's ability to attract and retain pharmaceutical clients, especially for advanced therapies, will be critical for long-term success in this technically demanding and rapidly evolving industry.

DURHAM, N.C., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Scorpius Holdings, Inc. (NYSE American: SCPX), (“Scorpius”, or the “Company”), an integrated contract development and manufacturing organization (CDMO), today announced the closing of its underwritten public offering of 14,375,000 shares of common stock (and/or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof), including full exercise of the underwriter’s over-allotment option. Each share of common stock (or Pre-Funded Warrant) was offered at a public offering price of $1.00 per share (inclusive of the Pre-Funded Warrant exercise price), for gross proceeds of $14,375,000, before deducting underwriting discounts and offering expenses.

The Company intends to use the net proceeds of the offering to fund working capital and for general corporate purposes.

ThinkEquity acted as sole book-running manager for the offering.

A registration statement on Form S-1 (File No. 333-280887) relating to the securities being offered was filed with the Securities and Exchange Commission (“SEC”) and became effective on August 6, 2024. This offering is being made only by means of a prospectus. Copies of the final prospectus may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. The final prospectus has been filed with the SEC and is available on the SEC’s website located at http://www.sec.gov.

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 Scorpius Holdings, Inc.
Scorpius Holdings Inc. is an integrated large molecule contract development and manufacturing organization (CDMO) focused on rapidly advancing biologic and cell therapy programs to the clinic and beyond. Scorpius offers a broad array of analytical testing, process development, and manufacturing services to pharmaceutical and biotech companies at its state-of-the-art facilities in San Antonio, TX. With an experienced team and new, purpose-built U.S. facilities, Scorpius is dedicated to transparent collaboration and flexible, high-quality biologics biomanufacturing. For more information, please visit www.scorpiusbiologics.com.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions and include statements regarding the intended use of proceeds. Important factors that could cause actual results to differ materially from current expectations include, among others, the ability to complete the proposed offering, and other factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, subsequent quarterly report on Form 10-Q and any other filings the Company makes with the SEC. The information in this presentation is provided only as of the date presented, and the Company undertakes no obligation to update any forward-looking statements contained in this press release on account of new information, future events, or otherwise, except as required by law.

For Investor Relations Inquiries:

David Waldman
+1 (919)-289-4017
investorrelations@nighthawkbio.com

FAQ

How much did Scorpius Holdings (SCPX) raise in its recent public offering?

Scorpius Holdings (SCPX) raised gross proceeds of $14,375,000 in its recent public offering, which closed on August 19, 2024.

What was the offering price for Scorpius Holdings' (SCPX) public offering?

The offering price for Scorpius Holdings' (SCPX) public offering was $1.00 per share of common stock or pre-funded warrant.

How many shares did Scorpius Holdings (SCPX) offer in its public offering?

Scorpius Holdings (SCPX) offered 14,375,000 shares of common stock and/or pre-funded warrants in its public offering.

What will Scorpius Holdings (SCPX) use the proceeds from the public offering for?

Scorpius Holdings (SCPX) intends to use the net proceeds from the public offering to fund working capital and for general corporate purposes.