GAITHERSBURG, Md. - BullFrog AI Holdings, Inc. (NASDAQ:BFRG; BFRGW), a company that specializes in using artificial intelligence (AI) for drug development, has announced a definitive agreement for a registered direct offering and a concurrent private placement. The transaction involves the sale of 1,565,000 shares of common stock or equivalents and warrants to purchase an equal number of shares, at a combined price of $2.00 per share and warrant.
The offering is scheduled to close around October 21, 2024, subject to standard closing conditions. The company anticipates gross proceeds of approximately $3.13 million, excluding potential proceeds from the exercise of the warrants and before deducting fees and other expenses. The warrants are exercisable six months post-issuance and will expire five years from that date, with an exercise price of $2.00 per share.
WallachBeth Capital, LLC is serving as the sole placement agent for the offering. The shares and pre-funded warrants are being offered under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on August 21, 2024. The common warrants issued in the private placement and the shares issuable upon their exercise have not been registered under the Securities Act, and are offered pursuant to an exemption from registration requirements.
BullFrog AI utilizes its proprietary bfLEAP™ AI platform to analyze data across various stages of drug development, aiming to reduce costs and failure rates in the development of new therapeutics. The company collaborates with research institutions to apply AI in drug development from early discovery to late-stage clinical trials.
This press release contains forward-looking statements regarding the company's performance, including financial projections and business prospects. These statements are based on current expectations and projections and are subject to risks and uncertainties that may cause actual results to differ materially.
The information provided here is based on a press release statement from BullFrog AI Holdings, Inc.
In other recent news, BullFrog AI Holdings, Inc. has announced the results of its 2024 Annual Meeting of Stockholders. The meeting led to the election of four directors and the ratification of the company's independent public accounting firm. The newly elected directors include William Enright, Jason D. Hanson, R. Donald Elsey, and Vininder Singh, who will serve until the next annual meeting or until successors are appointed. The company's stockholders also ratified the appointment of M&K CPAs, PLLC as the independent registered public accounting firm for the fiscal year ending December 31, 2024. These developments are part of the recent activities within BullFrog AI Holdings, Inc., a company with its operations based in Gaithersburg, MD. The company's stockholders played a crucial role in these decisions, with approximately 63.02% of the outstanding shares represented in the meeting.
InvestingPro Insights
BullFrog AI Holdings, Inc. (NASDAQ:BFRG) is positioning itself in the cutting-edge field of AI-driven drug development, and recent financial data from InvestingPro provides additional context to the company's latest capital raising efforts.
According to InvestingPro data, BullFrog AI has a market capitalization of $20.41 million, reflecting its status as a small-cap company in the biotech sector. This relatively modest valuation aligns with the company's recent move to raise approximately $3.13 million through a registered direct offering and private placement, which could significantly bolster its cash position.
An InvestingPro Tip highlights that BullFrog AI "holds more cash than debt on its balance sheet," suggesting a prudent financial approach that may appeal to investors in the high-risk, high-reward biotech space. This cash position could be further strengthened by the proceeds from the new offering, potentially providing the company with additional runway to advance its AI-driven drug development platform.
Another relevant InvestingPro Tip notes the company's "impressive gross profit margins." With a gross profit margin of 92.0% for the last twelve months as of Q2 2024, BullFrog AI demonstrates strong potential in monetizing its proprietary bfLEAP™ AI platform. This high margin could be particularly attractive to investors, as it suggests that if the company can scale its operations, it may have significant profit potential.
It's worth noting that InvestingPro lists 8 additional tips for BullFrog AI, offering investors a more comprehensive view of the company's financial health and market position. These insights could be particularly valuable given the complex and often volatile nature of the biotech industry.
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