Private Placement of Biofrontera

Biofrontera Secures $16M Funding in Private Placement, Shares Surge

Biofrontera Inc, a leading figure in the biopharmaceutical sector specializing in dermatologic products, has garnered substantial attention in the market after unveiling a private placement agreement with healthcare-focused institutional investors led by Rosalind Advisors.


The agreement, which entails issuing an aggregate of $8.0 million in shares of the company’s Series B-1 Convertible Preferred Stock along with warrants to purchase shares of the Company’s Series B-3 Convertible Preferred Stock, has injected fresh optimism into Biofrontera’s future prospects.


The news sent Biofrontera’s stock soaring, with shares experiencing a notable surge as trading opened at $1.27 on Tuesday morning, following a previous close of $0.74 on Friday. This bullish momentum reflects the market’s confidence in Biofrontera’s strategic direction and growth potential.


At the time of this publication, Biofrontera Inc stock (BFRI) has witnessed a surge.
Biofrontera Inc
Current Price: $1.19
Change : +0.44
Change (%): (58.77%)
Volume: 25.3M
Source: Tomorrow Events Market Data


Under the terms of the private placenment, Series B-1 and Series B-3 Convertible Preferred Stock of Biofrontera will be issued at a price of $1,000.00 per share. Conversion of these shares into common stock is contingent upon approval by the Company’s stockholders of an increase in the Company’s authorized shares of common stock.


The proceeds from this private placement, which could reach up to $16 million if all warrants are exercised, are earmarked to fuel the general business operations of Biofrontera and accelerate the development and approval of additional indications for its lead product, Ameluz. Ameluz, currently approved for the treatment of mild to moderate actinic keratosis on the face and scalp, holds significant promise in addressing dermatologic conditions.


Moreover, the agreement stipulates the appointment of up to two directors nominated by the lead investor to the board of directors of Biofrontera, underscoring the collaborative nature of this strategic partnership.


While the private placement is expected to close on or about February 21, 2024, subject to customary closing conditions, Biofrontera’s management is already gearing up to leverage this infusion of capital to drive innovation, expand market reach, and ultimately deliver value to shareholders.


It’s worth noting that the securities offered in this private placement are being made under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, highlighting the company’s commitment to compliance and transparency.


With Biofrontera poised for a new phase of growth and development, investors are eagerly anticipating the company’s next steps as it continues to make strides in advancing dermatologic healthcare solutions.

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