Timber Pharmaceuticals Announces Pricing of $8.0 Million Public Offering

Rhea-AI Summary

Timber Pharmaceuticals, Inc. (TMBR) announced a public offering of 66,666,667 shares of its common stock and associated warrants, priced at $0.12 each. The offering aims to raise approximately $8.0 million for research and development, including clinical trials and working capital. The closing is expected on August 8, 2022. H.C. Wainwright & Co. is the exclusive placement agent. The offering is registered under Form S-1 and follows SEC regulations. This move reflects Timber's commitment to advancing treatments for rare dermatologic diseases.

Positive

• The offering aims to raise approximately $8.0 million, which will fund research and development.
• Funds will support clinical trials and working capital, potentially advancing product initiatives.

Negative

• The offering of 66,666,667 shares may lead to shareholder dilution.

Basking Ridge, NJ, Aug. 04, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Timber Pharmaceuticals, Inc. (“Timber” or the “Company”) (NYSE American: TMBR), a biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases, today announced the pricing of a public offering of 66,666,667 shares of its common stock (or pre-funded warrants in lieu thereof) and warrants to purchase up to 66,666,667 shares of its common stock at an offering price to the public of $0.12 per share (or pre-funded warrant) and associated warrant. The warrants will have an exercise price of $0.12 per share, are exercisable immediately upon issuance, and will expire five years following the date of issuance.  The closing of the offering is expected to occur on or about August 8, 2022, 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 to the Company from the offering are expected to be approximately $8.0 million, before deducting the placement agent’s fees and other offering expenses payable by Timber.  The Company intends to use the net proceeds from this offering for research and development, including clinical trials, working capital and general corporate purposes. 

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-2265974) previously filed with the Securities and Exchange Commission (SEC) and became effective on August 4, 2022. The offering is being made only by means of a prospectus, which is part of the effective registration statement. When available, electronic copies of the final prospectus may be obtained for free on the SEC’s website located at http://www.sec.govand 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 does not constitute an offer to sell or the 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 an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Timber Pharmaceuticals, Inc.

Timber Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases. The Company's investigational therapies have proven mechanisms-of-action backed by decades of clinical experience and well-established CMC (chemistry, manufacturing and control) and safety profiles. The Company is initially focused on developing non-systemic treatments for rare dermatologic diseases including congenital ichthyosis (CI) and other sclerotic skin diseases. For more information, visit www.timberpharma.com.

Forward-Looking Statements 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements pertaining to Timber’s expectations regarding future financial and/or operating results, the consummation of the public offering of Timber’s securities described above and the use of net proceeds therefrom, potential for our products and future revenues or growth in this press release constitute forward-looking statements.

These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential, "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors, such as market and other conditions, which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 as well as other documents filed by the Company from time to time thereafter with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

For more information, contact: 

Timber Pharmaceuticals, Inc. 
John Koconis 
Chairman and Chief Executive Officer
jkoconis@timberpharma.com

Investor Relations:
Stephanie Prince
PCG Advisory
(646) 863-6341
sprince@pcgadvisory.com

Media Relations:
Adam Daley
Berry & Company Public Relations
(212) 253-8881
adaley@berrypr.com

FAQ

What is the purpose of Timber Pharmaceuticals' public offering (TMBR)?

The purpose of Timber Pharmaceuticals' public offering is to raise funds for research and development, including clinical trials and working capital.

How much is Timber Pharmaceuticals planning to raise in the public offering?

Timber Pharmaceuticals is planning to raise approximately $8.0 million from the public offering.

What is the pricing detail of Timber Pharmaceuticals' stock offering?

The stock offering is priced at $0.12 per share or pre-funded warrant, with warrants also priced at $0.12.

When is the closing date for Timber Pharmaceuticals' stock offering?

The closing date for Timber Pharmaceuticals' stock offering is expected to be on or about August 8, 2022.

Who is the placement agent for Timber Pharmaceuticals' public offering?

H.C. Wainwright & Co. is acting as the exclusive placement agent for the public offering.