CARSON CITY, Nev. - BioVie Inc. (NASDAQ: BIVI), a clinical-stage biopharmaceutical company, today disclosed the launch of a registered direct offering, aiming to raise approximately $6.7 million through the sale of common stock and warrants. The transaction involves the issuance of 4,443,000 shares at a price of $1.50 each, alongside warrants to purchase an equivalent number of shares at $1.37 per share.
The warrants, which become exercisable six months post-issuance, will expire five years from the initial exercise date. BioVie anticipates the offering to close around October 22, 2024, subject to customary closing conditions. ThinkEquity is serving as the sole placement agent for the offering.
BioVie's management has stated that the net proceeds are intended primarily for working capital and general corporate purposes. The offering and sale of the securities are being made under a shelf registration statement, previously filed with and declared effective by the U.S. Securities and Exchange Commission (SEC).
The company, which focuses on developing treatments for chronic debilitating conditions such as liver disease and neurological disorders, has emphasized that the securities will be sold pursuant to a written prospectus, aligning with regulatory requirements.
This fundraising move comes as BioVie continues to advance its clinical programs, including its Orphan drug candidate BIV201 for liver cirrhosis and ascites, which has been granted FDA Fast Track status. Additionally, BioVie is developing drug candidate bezisterim for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's.
The press release statement clarifies that the offering shall not be misconstrued as an offer to sell or a solicitation of an offer to buy in any jurisdiction where such actions would be unlawful without registration or qualification under the securities laws of such state or jurisdiction.
The information provided in this article is based on a press release statement from BioVie Inc.
In other recent news, BioVie Inc. has been making notable strides in its pharmaceutical development and corporate operations. The company has secured patents for its novel liquid formulation of terlipressin, designed to manage ascites in patients with liver cirrhosis, in Japan, the United States, India, and Chile. The new formulation is expected to improve patient treatment, particularly in home care settings.
BioVie also announced plans for a public offering of common stock and purchase warrants, managed by ThinkEquity. The net proceeds are intended for working capital and general corporate purposes. The company has also secured FDA authorization for its Investigational New Drug application for bezisterim, a potential treatment for long COVID symptoms, backed by a Department of Defense grant that could amount to $12.6 million upon achieving certain milestones.
In addition, the company reported the resignation of director Steve Gorlin and has regained compliance with Nasdaq's minimum bid price requirement, following a 1-for-10 reverse stock split of its Class A common stock. BioVie has presented new clinical data on bezisterim at the 11th Aging Research and Drug Discovery (NASDAQ:WBD) Meeting, indicating its potential influence on the biological aging process and chronic inflammation related to aging-related diseases. The drug is being investigated for its potential in treating Alzheimer's and Parkinson's diseases, with promising results from Phase 2 and Phase 3 studies. These are all recent developments in BioVie's ongoing commitment to pharmaceutical innovation.
InvestingPro Insights
BioVie Inc.'s recent registered direct offering comes at a time when the company's financial metrics and market performance paint a complex picture. According to InvestingPro data, BioVie's market capitalization stands at $38.22 million, reflecting its current position as a small-cap biopharmaceutical company.
The company's stock has experienced significant volatility, with InvestingPro Tips noting that it "generally trades with high price volatility." This volatility is evident in the stark contrast between the stock's performance over different time frames. While BioVie has seen a remarkable 106.14% return over the past week, it has suffered substantial losses over longer periods, with a -93.13% return over the past year.
BioVie's financial health presents both strengths and challenges. An InvestingPro Tip highlights that the company "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it pursues its clinical programs. However, the company is not currently profitable, with a negative P/E ratio of -0.56 for the last twelve months as of Q4 2024.
The recent offering at $1.50 per share is particularly interesting when compared to the fair value estimates provided by InvestingPro. While the InvestingPro Fair Value suggests a price of $1.39, analyst targets indicate a significantly higher fair value of $30. This discrepancy underscores the speculative nature of investing in clinical-stage biopharmaceutical companies like BioVie.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 11 more tips available for BioVie Inc., providing a deeper understanding of the company's financial position and market dynamics.
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