LA JOLLA, CA - GRI Bio, Inc. (NASDAQ: GRI), a biotechnology firm specializing in Natural Killer T (NKT) cell modulators, announced the successful exercise of warrants that will extend the company's financial runway into mid-Q1 2025. This move is expected to support the development of GRI Bio's lead program, GRI-0621, an investigational treatment for Idiopathic Pulmonary Fibrosis (IPF).
On Monday, the company closed a transaction involving the exercise of warrants for purchasing 762,236 shares of common stock, generating approximately $0.8 million before fees and expenses. This adds to the $13.9 million raised since the start of 2024. H.C. Wainwright & Co. served as the exclusive placement agent for the offering.
The recently acquired funds are earmarked for advancing GRI-0621, which targets iNKT cells implicated in inflammatory and fibrotic diseases. IPF patients currently have limited treatment options, with only two approved drugs that do not improve survival and have significant side effects.
In conjunction with the warrant exercise, GRI Bio issued new Series D-1 and D-2 warrants for an equal number of shares, exercisable at $1.00 per share. The Series D-1 warrants are valid for five years from issuance, while the Series D-2 warrants will expire in eighteen months.
GRI Bio's CEO, Marc Hertz, PhD, stated that the financing strengthens the company's balance sheet and supports the anticipated interim and topline data for GRI-0621 in upcoming quarters. He expressed confidence in the potential of the program to benefit IPF patients significantly.
The new warrants were offered in a private placement under securities law exemptions, and the shares issuable upon their exercise have not been registered under federal or state securities laws, meaning they cannot be sold in the U.S. without registration or an exemption.
This funding milestone is part of GRI Bio's broader mission to change the treatment landscape for inflammatory, fibrotic, and autoimmune diseases through its pipeline of NKT cell modulators. The company also has over 500 proprietary compounds to fuel future developments.
The information in this article is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, GRI Bio, a pharmaceutical company, has made several noteworthy developments. The company has reported progress in its IPF treatment study, with new preclinical data indicating the potential of its lead drug candidate, GRI-0621, in treating Idiopathic Pulmonary Fibrosis (IPF). The company is advancing GRI-0621 through a Phase 2a biomarker study, with interim results anticipated in late 2024 and topline findings expected in early 2025.
GRI Bio has also secured a patent in Japan for its Natural Killer T (NKT) cell modulators, broadening its intellectual property portfolio in a significant pharmaceutical market. In addition, the company has received authorization from Australian regulatory authorities to commence a Phase 2a biomarker study for GRI-0621, further expanding its global clinical development.
Financially, GRI Bio has expanded its at-the-market offering program, allowing for the issuance of an aggregate of $2,644,609 worth of the company's common stock. Furthermore, the company announced a public offering of over 2 million shares of common stock and Series C warrants, expected to generate about $4 million. In terms of corporate governance, a recent shareholder meeting resulted in the election of a director, approval of common stock issuances, and an equity plan amendment.
Ascendiant Capital has initiated coverage on GRI Bio with a Buy rating, setting a 12-month target of $12. However, the company received notification from the Nasdaq Stock Market regarding non-compliance with the exchange's minimum bid price requirement, placing its listing at risk. These are recent developments for GRI Bio.
InvestingPro Insights
GRI Bio's recent financial maneuvers come at a critical time for the company. According to InvestingPro data, GRI's market capitalization stands at a modest $2.36 million, reflecting its early-stage status in the biotechnology sector. The company's financial position is further illuminated by two key InvestingPro Tips: GRI "holds more cash than debt on its balance sheet," which aligns with the recent warrant exercise to bolster its financial runway, but is also "quickly burning through cash," underscoring the importance of the recent $0.8 million raised.
The stock's recent performance has been volatile, with InvestingPro data showing a significant 75.22% return over the last month, possibly influenced by the recent financing news. However, this short-term gain contrasts sharply with the longer-term trend, as the stock has experienced a 99.19% decline over the past year.
For investors considering GRI Bio's potential, it's worth noting that analysts do not anticipate the company to be profitable this year, according to an InvestingPro Tip. This aligns with the company's focus on extending its runway to support ongoing research and development efforts, particularly for its lead program GRI-0621.
InvestingPro offers 13 additional tips for GRI Bio, providing a more comprehensive analysis for those interested in delving deeper into the company's financial health and market position.
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