60 Degrees Pharmaceuticals Announces Closing of $2.4 Million Public Offering

Rhea-AI Summary

60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW) announced the closing of its public offering of 5,260,901 units and 999,076 pre-funded units. The company intends to use the net proceeds for working capital, relaunch of ARAKODA®, and research and development activities.

Insights

Financial Analyst

The recent public offering by 60 Degrees Pharmaceuticals is a strategic move aimed at bolstering the company's financial position. With the gross proceeds of approximately $2.4 million, the company is poised to enhance its working capital and support general corporate functions. This influx of capital is critical for the company's plans to relaunch ARAKODA®, which is an FDA-approved malaria prevention medication. The decision to allocate funds for research and development activities further underscores the company's commitment to innovation within the infectious disease space.

From an investment perspective, the pricing of the units and warrants indicates a potential for future growth, as evidenced by the immediate exercisability of the warrants. The structure of the offering, including the pre-funded units, provides a safeguard for the company to ensure capital is available even if the common stock does not appreciate to the level warranting exercise of the standard warrants. This could be seen as a sign of cautious optimism by the company regarding its future stock performance.

However, the relatively low price per unit may reflect market perceptions of risk associated with the company's prospects. Investors and analysts should monitor the company's use of the raised funds and the subsequent performance of ARAKODA® in the market, as these will be critical indicators of the company's long-term financial health and growth trajectory.

Market Research Analyst

The pharmaceutical industry is highly competitive and companies like 60 Degrees Pharmaceuticals must constantly innovate to maintain a competitive edge. The relaunch of an FDA-approved drug such as ARAKODA® could potentially capture a significant share of the malaria prevention market, assuming the efficacy and cost-effectiveness align with market demands. The company's investment in research and development, as indicated by the allocation of proceeds, suggests an ongoing pursuit of new products or improvements to existing ones.

It is important to note the role of underwriters in this offering, with WallachBeth Capital LLC partially exercising its over-allotment option with respect to 818,177 Warrants. This move demonstrates a measure of confidence in the company's future prospects, although the partial exercise also suggests a conservative approach to the investment. The involvement of legal counsels Sichenzia Ross Ference Carmel LLP and TroyGould PC ensures compliance with regulatory requirements, which is essential for maintaining investor confidence.

Market analysts should consider the impact of this offering on the company's market capitalization and investor sentiment, as well as how the additional capital might affect the company's ability to navigate the regulatory landscape and bring new products to market.

Medical Research Analyst

The successful relaunch of ARAKODA® could have significant implications for global health, particularly in regions where malaria is endemic. As a medical research analyst, it's important to evaluate the potential market impact of this drug based on its clinical profile and the company's ability to execute an effective marketing strategy. The additional funds earmarked for research and development could also accelerate the pipeline of new treatments for infectious diseases, which is crucial given the rising global concern over antibiotic resistance and the need for novel therapies.

Furthermore, the industry trend towards targeted therapies and personalized medicine could influence the company's research direction and its potential collaborations with biotech firms or academic institutions. The ability of 60 Degrees Pharmaceuticals to leverage this capital raise to drive innovation will be a key factor in its future success and thus a point of interest for stakeholders monitoring the company's progress.

WASHINGTON, Jan. 31, 2024 (GLOBE NEWSWIRE) -- 60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP; SXTPW) (“60 Degrees Pharmaceuticals” or the “Company”), specialists in developing and marketing new medicines for the treatment and prevention of infectious diseases, announced today the closing of its public offering of 5,260,901 units (the “Units”) at a price to the public of $0.385 per Unit and 999,076 pre-funded units (the “Pre-Funded Units”) at a price to the public of $0.375 per Pre-Funded Unit. Each Unit consists of one share of common stock and one warrant exercisable for one share of common stock (the “Warrant”). Each Warrant has an exercise price of $0.4235 per share, is exercisable immediately upon issuance and expires five years from the date of issuance. Each Pre-Funded Unit consists of one pre-funded warrant exercisable for one share of common stock (the “Pre-Funded Warrant”) and one warrant identical to the Warrants included in the Units. The purchase price of each Pre-Funded Unit is equal to the price per Unit being sold to the public in the offering, minus $0.01, and the exercise price of each Pre-Funded Warrant is $0.01 per share. The Pre-Funded Warrants are immediately exercisable and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full.

The underwriters were granted an option, exercisable within 45 days after the closing of the offering, to purchase shares of the Company’s common stock at a price of $0.385 per share and/or Warrants at a price of $0.01 per Warrant and/or Pre-Funded Warrants at a price of $0.375 per Pre-Funded Warrant, or any combination of additional shares of common stock, Warrants and/or Pre-Funded Warrants, representing, in the aggregate, up to 15% of the number of Units sold in the offering, 15% of the Warrants underlying the Units and Pre-Funded Units sold in the offering and 15% of the Pre-Funded Warrants underlying the Pre-Funded Units sold in the offering, in all cases less the underwriting discount to cover over-allotments, if any. On January 31, 2024, WallachBeth Capital LLC partially exercised its over-allotment option with respect to 818,177 Warrants.

WallachBeth Capital LLC is the Sole Bookrunner for the offering. Sichenzia Ross Ference Carmel LLP is acting as legal counsel to the Company and TroyGould PC, is acting as legal counsel to the underwriters.

The gross proceeds to the Company from the offering were approximately $2.4 million, before deducting underwriter fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes; the relaunch of the Company’s FDA-approved ARAKODA^® (tafenoquine), for malaria prevention; and research and development activities.  

The offering was made pursuant to the Company’s registration statement on Form S-1 (File No. 333-276641) previously filed with the Securities and Exchange Commission (“SEC”) and declared effective by the SEC on January 29, 2024. A final prospectus relating to the offering was filed with the SEC on January 31, 2024, and is available on the SEC’s website at www.sec.gov. Electronic copies of the final prospectus relating to the offering, when available, may be obtained from WallachBeth Capital, LLC, via email: cap-mkts@wallachbeth.com, or by calling +1 (646) 237-8585, or by standard mail at WallachBeth Capital LLC, Attn: Capital Markets, 185 Hudson St., Suite 1410, Jersey City, NJ 07311, USA.

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 the registration or qualification under the securities laws of any such state or other jurisdiction.

About 60 Degrees Pharmaceuticals, Inc.

60 Degrees Pharmaceuticals, Inc., founded in 2010, specializes in developing and marketing new medicines for the treatment and prevention of infectious diseases that affect the lives of millions of people. 60 Degrees Pharmaceuticals successfully achieved FDA approval of its lead product, ARAKODA^® (tafenoquine), for malaria prevention, in 2018. 60 Degrees Pharmaceuticals also collaborates with prominent research organizations in the U.S., Australia and Singapore. 60 Degrees Pharmaceuticals’ mission has been supported through in-kind funding from the U.S. Department of Defense and private institutional investors including Knight Therapeutics Inc., a Canadian-based pan-American specialty pharmaceutical company. 60 Degrees Pharmaceuticals is headquartered in Washington D.C., with a majority-owned subsidiary in Australia. Learn more at www.60degreespharma.com.

Forward-Looking Statements

The statements contained herein may include prospects, statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The statements expressed herein are those only of 60 Degrees Pharmaceuticals.

Forward-looking terminology, such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof, or other variations thereon or comparable terminology, may discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. However, we are not able to predict accurately or control these matters. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media Contact:
Sheila A. Burke
Method Health Communications
methodhealthcomms@gmail.com
(484) 667-6330

Investor Contact:
Patrick Gaynes
patrickgaynes@60degreespharma.com
(310) 989-5666

FAQ

What is the ticker symbol for 60 Degrees Pharmaceuticals, Inc.?

The ticker symbol for 60 Degrees Pharmaceuticals, Inc. is SXTP.

What was the purpose of the public offering announced by 60 Degrees Pharmaceuticals, Inc.?

The purpose of the public offering was to raise funds for working capital, the relaunch of ARAKODA®, and research and development activities.

What was the gross proceeds from the offering?

The gross proceeds to the Company from the offering were approximately $2.4 million, before deducting underwriter fees and other offering expenses payable by the Company.

What is the exercise price of the Warrants included in the Units?

Each Warrant has an exercise price of $0.4235 per share, is exercisable immediately upon issuance, and expires five years from the date of issuance.

Who acted as legal counsel to 60 Degrees Pharmaceuticals, Inc.?

Sichenzia Ross Ference Carmel LLP is acting as legal counsel to the Company, and TroyGould PC is acting as legal counsel to the underwriters.