TFF Pharmaceuticals Announces Closing of Pricing of $4.8 Million Public Offering

Rhea-AI Summary

TFF Pharmaceuticals, Inc (Nasdaq: TFFP) closed a public offering, raising approximately $4.8 million by selling shares and warrants. The company plans to use the net proceeds for general corporate purposes and working capital.

Insights

Financial Analyst

TFF Pharmaceuticals' recent public offering of $4.8 million reflects a strategic move to enhance its working capital and support general corporate functions. Considering the pricing of the shares and warrants, the offering is slightly below market value, which could suggest the company's need for quick liquidity. Investors should note the dilution effect: the increase in shares outstanding might lead to a decline in existing shareholders' equity value. However, the five-year exercisability of warrants at $2.75 per share provides potential for future investment if the stock appreciates. It's imperative to scrutinize the company's pipeline and use of capital to ascertain the potential return on investment from such offerings. We should observe the company's next financial reporting period closely to evaluate the effectiveness of this capital in progressing their patented TFF technology platform.

Biotech Market Analyst

The capital raised by TFF Pharmaceuticals could be indicative of their confidence in the Thin Film Freezing (TFF) technology. The biotechnology sector is highly competitive and capital-intensive, so the success of this offering may hinge on their ability to accelerate development and navigate regulatory pathways. The TFF platform is innovative, aiming to enhance solubility and absorption of drugs, which could be a game-changer if successfully commercialized. As investors evaluate the long-term potential of their investment, understanding the market demand for such technology is critical. A thorough analysis of the company's research and development pipeline, alongside their competition, will provide better visibility into the investment's future value.

FORT WORTH, Texas, May 01, 2024 (GLOBE NEWSWIRE) -- TFF Pharmaceuticals, Inc (Nasdaq: TFFP) (the “Company” or “TFF Pharmaceuticals”), a clinical-stage biopharmaceutical company focused on developing and commercializing innovative drug products based on its patented Thin Film Freezing (TFF) technology platform, today announced the closing of its previously announced public offering of an aggregate of 1,665,219 shares of its common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to 1,665,219 shares of common stock at a combined public offering price of $2.875 per share (or per common stock equivalent in lieu thereof) and accompanying warrant. The warrants have an exercise price of $2.75 per share, are exercisable immediately for a period of five years from the date of issuance.

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

The gross proceeds from the offering, before deducting the placement agent's fees and other offering expenses, were approximately $4.8 million. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The securities described above were offered pursuant to a registration statement on Form S-1 (File No. 333-278546), which was declared effective by the Securities and Exchange Commission (the “SEC”) on April 29, 2024. The offering was made only by means of a prospectus forming part of the effective registration statement relating to the offering. A final prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711 or e-mail at placements@hcwco.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, 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 TFF PHARMACEUTICALS

TFF Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company engaging patented rapid freezing technology to develop and transform medicines into potent dry powder formulations for better efficacy, safety, and stability. The company’s versatile TFF technology platform has broad applicability to convert most any drug, including vaccines, small and large molecules, and biologics, into an elegant dry powder highly advantageous for inhalation, or for topical delivery to the eyes, nose and the skin.

SAFE HARBOR

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements in this press release include, but are not limited to, statements by the Company relating to the intended use of proceeds from the offering.   Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially, including those risks disclosed in under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on March 28, 2024 and the preliminary prospectus filed related to the offering. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law.

Investor Relations Contact:
Corey Davis, Ph.D.
LifeSci Advisors
(212) 915-2577
cdavis@lifesciadvisors.com

FAQ

How much did TFF Pharmaceuticals raise in the public offering?

TFF Pharmaceuticals raised approximately $4.8 million in the public offering.

What is the purpose of the net proceeds from the offering?

The net proceeds from the offering will be used for general corporate purposes and working capital.

Who acted as the exclusive placement agent for the offering?

H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.

What is the exercise price of the warrants issued in the offering?

The warrants have an exercise price of $2.75 per share and are exercisable immediately for a period of five years from the date of issuance.

When was the registration statement for the offering declared effective by the SEC?

The registration statement on Form S-1 (File No. 333-278546) was declared effective by the SEC on April 29, 2024.