TFF Pharmaceuticals Announces Pricing of $4.8 Million Public Offering

Rhea-AI Summary

TFF Pharmaceuticals, Inc. announced a public offering of 1,665,219 shares of common stock and warrants, priced at $2.875 per share, with gross proceeds estimated at $4.8 million. The Company plans to use the net proceeds for working capital and general corporate purposes. The offering is expected to close on May 1, 2024.

Insights

Financial Analyst

TFF Pharmaceuticals' recent public offering is a noteworthy event with the potential to influence the company's liquidity position. The decision to issue 1,665,219 shares and equal warrants at a combined price slightly below market values is a strategic measure to raise capital. With the exercise price of the warrants set at $2.75, investors will need to assess the potential for share price appreciation, factoring in the immediate exercisability and five-year expiration. The gross proceeds of $4.8 million will bolster the company's working capital and support general corporate functions, which may signal a focus on advancing their TFF technology platform. Investors should consider the dilutive effect of such offerings on existing shareholders but also note the opportunity for the company to accelerate its growth with the additional capital.

Biotech Industry Analyst

The capital infusion from TFF Pharmaceuticals' public offering is poised to aid the company in its pursuit of novel drug delivery technologies using their Thin Film Freezing platform. This innovative approach, which could disrupt the drug delivery market, requires significant R&D investment. Investors may anticipate an acceleration in the development process, as the offering's proceeds are allocated to the working capital necessary for research and potential commercialization activities. However, the long-term success hinges on the platform's efficacy and market acceptance, which is yet to be determined. Stakeholders should monitor subsequent clinical trial outcomes and regulatory milestones that will provide further insight into the platform's potential and its impact on the company's valuation.

FORT WORTH, Texas, April 29, 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 pricing of a 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 will have an exercise price of $2.75 per share, will be exercisable immediately upon issuance and will expire five years from the date of issuance. The closing of the offering is expected to occur on or about May 1, 2024, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting 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, are expected to be 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 are being 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 is being made only by means of a prospectus forming part of the effective registration statement relating to the offering. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, 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 completion of the offering, the satisfaction of customary closing conditions related to the offering, and 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 many shares were included in TFF Pharmaceuticals' public offering?

TFF Pharmaceuticals offered 1,665,219 shares of common stock in the public offering.

What is the price per share in TFF Pharmaceuticals' public offering?

The price per share in TFF Pharmaceuticals' public offering is $2.875.

What is the expected gross proceeds from TFF Pharmaceuticals' public offering?

TFF Pharmaceuticals expects gross proceeds of approximately $4.8 million from the public offering.

When is the closing date for TFF Pharmaceuticals' public offering?

The closing of the offering is expected to occur on or about May 1, 2024.

What will TFF Pharmaceuticals use the net proceeds from the offering for?

TFF Pharmaceuticals plans to utilize the net proceeds from the offering for working capital and general corporate purposes.