Scorpius Holdings, Inc. Announces Pricing of Public Offering

Rhea-AI Summary

Scorpius Holdings, an integrated CDMO, has announced the pricing of its public offering of 60,000,000 common units or pre-funded units at $0.10 per unit. Each unit includes one share of common stock (or a pre-funded warrant) and a common warrant to purchase one share at $0.12. Gross proceeds are expected to be $6,000,000 before expenses, with an option for underwriters to purchase up to an additional 9,000,000 units to cover over-allotments. The offering is set to close on May 16, 2024. Proceeds will fund working capital, general purposes, and repay a $750,000 note. ThinkEquity is the sole manager for this offering.

Positive

• Offering expected to generate $6,000,000 in gross proceeds.
• Proceeds to fund working capital and general corporate purposes.
• Offering includes an option for underwriters to purchase additional units, potentially increasing proceeds.
• Warrants exercisable immediately, allowing potential rapid capital influx.

Negative

• Offering price of $0.10 per unit could indicate undervaluation.
• Repayment of $750,000 note reduces funds available for other uses.
• Dilution risk for existing shareholders due to large number of new shares.

Insights

Financial Analyst

The pricing of Scorpius Holdings' public offering at $0.10 per unit aims to raise approximately $6,000,000. This offering includes the issuance of common and pre-funded units, with each unit consisting of one share of common stock (or a pre-funded warrant) and a common warrant.

Key Financial Insight: The offering's gross proceeds are intended for working capital, general purposes and repaying a $750,000 non-convertible promissory note. By issuing these units at a relatively low price, Scorpius may be signaling a need for immediate liquidity or investment in future growth. However, this also implies potential dilution of existing shareholders' equity, as more shares are being issued into the market.

Short-Term Impact: The immediate influx of capital can help stabilize Scorpius’ financial situation and address its working capital needs. However, investors should consider the potential dilution effect and whether the company’s strategic use of funds will generate sufficient returns to offset this dilution.

Long-Term Perspective: Successfully utilizing the raised capital for growth initiatives and efficient debt management could enhance Scorpius' financial health. Investors should monitor how effectively the company deploys this capital in achieving its stated goals and whether it leads to sustainable growth and profitability.

Assessing the capital structure post-offering, Scorpius must balance between leveraging the raised funds and managing shareholder value.

Market Research Analyst

Scorpius Holdings operates within the competitive space of CDMO services, focusing on biologics and cell therapy. The industry's dynamics involve high demand for advanced manufacturing capabilities and stringent regulatory compliance.

Industry Context: The biomanufacturing sector is witnessing robust growth, driven by increased investments in biologics and cell therapies. Scorpius' commitment to expanding its capabilities and enhancing service offerings is well-aligned with these industry trends. However, the success of such offerings hinges on their ability to meet industry standards and client expectations.

Competitive Positioning: The capital raised can be pivotal in enhancing Scorpius' technological infrastructure and service capabilities. Investing in state-of-the-art facilities and high-quality biomanufacturing processes is important for maintaining a competitive edge. Investors should evaluate how these investments position Scorpius against its peers and its potential to capture a larger market share.

Client Relationships: Transparent collaboration and flexible manufacturing services are emphasized by Scorpius. How effectively the company leverages these funds to improve client satisfaction and operational efficiency will play a significant role in its market standing.

Monitoring the company’s progress in scaling its operations and achieving strategic milestones can provide insights into its long-term viability and growth potential.

DURHAM, N.C., May 14, 2024 (GLOBE NEWSWIRE) -- Scorpius Holdings, Inc. (NYSE American: SCPX), (“Scorpius”, or the “Company”), an integrated contract development and manufacturing organization (CDMO), today announced the pricing of its underwritten public offering of 60,000,000 common units and/or pre-funded units in lieu thereof. Each common (or pre-funded) unit is being offered at a public offering price of $0.10 per unit (inclusive of the pre-funded warrant exercise price) and consists of one share of common stock (or pre-funded warrant to purchase one share of common stock in lieu thereof) and a common warrant to purchase one share of common stock. The common warrants will have an exercise price of $0.12 per share and will be immediately exercisable upon issuance for a period of five years following the date of issuance. The gross proceeds to the Company from the offering are expected to be approximately $6,000,000, before deducting underwriting discounts and offering expenses. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 9,000,000 shares of common stock (and/or pre-funded warrants) and/or up to an additional 9,000,000 common warrants solely to cover over-allotments, if any. All of the shares of common stock (and/or pre-funded warrants) and associated common warrants are being offered by the Company. The offering is expected to close on May 16, 2024, subject to satisfaction of customary closing conditions.

The Company intends to use the net proceeds of the offering to fund working capital, general corporate purposes, and the repayment of a $750,000 non-convertible promissory note, plus accrued and unpaid interest.

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

A registration statement on Form S-1 (File No. 333-279092), as amended, including a preliminary prospectus, relating to the securities being offered was filed with the Securities and Exchange Commission (“SEC”) and became effective on May 13, 2024. This offering is being made only by means of a prospectus. Copies of the preliminary prospectus and final prospectus, when available, may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. The final prospectus will be filed with the SEC and will be 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 timing and completion of the proposed offering and 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 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

What is the pricing of Scorpius Holdings' public offering?

The public offering is priced at $0.10 per unit.

How many units is SCPX offering in its public offering?

Scorpius Holdings is offering 60,000,000 units.

What is the exercise price of the warrants in SCPX's offering?

The exercise price of the warrants is $0.12 per share.

How much does Scorpius Holdings expect to raise from the offering?

Scorpius Holdings expects to raise approximately $6,000,000 in gross proceeds.

What are the proceeds from SCPX's public offering intended for?

The proceeds are intended to fund working capital, general corporate purposes, and repay a $750,000 promissory note.

When is the closing date for Scorpius Holdings' public offering?

The offering is expected to close on May 16, 2024.

Who is the sole book-running manager for SCPX's offering?

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

What is the total potential number of additional units SCPX might offer under the over-allotment option?

Up to an additional 9,000,000 units.