BOCA RATON, Fla. - First Wave BioPharma, Inc. (NASDAQ: FWBI), a clinical-stage biopharmaceutical company, announced today a registered direct offering with an institutional investor for the sale of over half a million shares at $7.61 each. The transaction also includes warrants for an equal number of shares, with an exercise price of $7.48, immediately exercisable upon issuance and valid for five years.
The company expects to generate approximately $4 million in gross proceeds before accounting for placement agent fees and other expenses. These funds are earmarked for working capital and general corporate purposes. The offering's closure is anticipated around March 6, 2024, contingent on standard closing conditions.
The shares and warrants are being sold pursuant to an effective shelf registration statement and will be accompanied by a prospectus supplement filed with the SEC. Roth Capital Partners is the exclusive placement agent for this offering.
First Wave BioPharma specializes in developing non-systemic treatments for gastrointestinal diseases. Their pipeline includes Capeserod for GI indications, Adrulipase for fat digestion in patients with exocrine pancreatic insufficiency, and Niclosamide for inflammatory bowel diseases. The company is also in talks for a business combination with ImmunogenX, Inc. to develop Latiglutenase for celiac disease.
This financial move comes as part of the company's broader efforts to advance its clinical programs and potentially expand its product offerings through strategic transactions. The information is based on a press release statement from First Wave BioPharma.
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