ZURICH - NLS Pharmaceutics Ltd. (NASDAQ:NLSP), a Swiss biopharmaceutical company specializing in central nervous system disorders, has entered into a definitive agreement to issue and sell over 3 million common shares at $0.24 each in a registered direct offering. Concurrently, the company will issue warrants in a private placement, exercisable immediately upon issuance and expiring five years from the date of issuance.
The offering, expected to close around July 1, 2024, subject to customary conditions, is being exclusively managed by H.C. Wainwright & Co. NLS anticipates gross proceeds of approximately $786,660 before fees and expenses. The funds are earmarked for working capital, research and development, and other general corporate activities, including strategic opportunities to expand the company's pipeline.
The common shares are being offered pursuant to a shelf registration statement filed with the Securities and Exchange Commission (SEC) on February 3, 2022, and declared effective on February 11, 2022. Details of the offering will be available in the final prospectus supplement filed with the SEC.
The warrants being issued in the private placement, and the common shares underlying them, are not registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
NLS Pharmaceutics Ltd. is a development-stage company founded in 2015, focusing on innovative therapies for patients with rare and complex central nervous system disorders. The company's management team has a history of developing and commercializing product candidates.
The information in this article is based on a press release statement from NLS Pharmaceutics Ltd.
In other recent news, NLS Pharmaceutics has reported promising developments in their research on Parkinson's Disease and narcolepsy. The Swiss biopharmaceutical company has revealed encouraging preclinical results for compounds targeting Parkinson's Disease, specifically the A53T mutation of alpha-synuclein.
Compounds AEX-19, AEX-23, and AEX-24 showed potential neuroprotective benefits and the ability to enhance alpha-synuclein degradation. The company plans to develop two new chemical successors, AEX-230 and AEX-231, targeting various cathepsins involved in neurodegenerative disorders.
NLS Pharmaceutics has also announced the publication of a patent application for a new series of molecules targeting narcolepsy and other neurodegenerative conditions. The molecules, licensed from Aexon Labs, are designed to activate orexin pathways crucial for maintaining wakefulness and regulating sleep patterns.
Despite these advancements, NLS Pharmaceutics has been notified of non-compliance with Nasdaq's stockholders' equity requirement, which could potentially lead to the delisting of its securities. To address this, the company has scheduled a hearing with the Nasdaq Hearings Panel.
Moreover, NLS Pharmaceutics has launched a registered direct offering and concurrent private placement of securities expected to raise $1.75 million with H.C. Wainwright & Co. serving as the exclusive placement agent for this transaction. These developments underscore the company's ongoing efforts in the field of neurodegenerative disorder treatment.
InvestingPro Insights
As NLS Pharmaceutics Ltd. (NASDAQ:NLSP) navigates its capital-raising journey through a direct offering and private placement of warrants, investors are closely monitoring the financial health and market dynamics of the company.
The recent offering price of $0.24 per common share reflects the company's market position, which is characterized by a Market Cap of approximately $9.63 million USD. This valuation comes at a time when the company is experiencing significant price movements, as indicated by a 27.66% return over the last week and a 37.54% return over the last month.
InvestingPro data underscores the challenges faced by NLS Pharmaceutics with a negative P/E Ratio (Adjusted) of -0.79 for the last twelve months as of Q4 2023, suggesting that the company has not been profitable over this period. Moreover, a Price / Book value of -1.09 further indicates that the market values the company at less than its net asset value. These financial metrics are critical for potential investors to consider, especially in light of the company's strategic initiatives to enhance its R&D capabilities and expand its product pipeline.
InvestingPro Tips highlight the high price volatility that NLSP stock generally trades with, which may be of interest to investors looking for short-term trading opportunities. However, it's important to note that the stock has suffered from weak gross profit margins and has seen a significant price fall over the last year. For those seeking a more in-depth analysis, InvestingPro offers additional tips, with the current count standing at 12. These insights can be accessed by visiting the dedicated page for NLS Pharmaceutics at https://www.investing.com/pro/NLSP.
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