In a recent development, Lipella Pharmaceuticals Inc., a clinical-stage biotechnology company focused on tackling severe diseases with substantial unmet needs, has confirmed the completion of its previously disclosed private placement transaction. This placement, executed in compliance with Nasdaq regulations, involved the acquisition and sale of pre-funded warrants, allowing for the purchase of a combined total of 1,315,790 shares, along with additional warrants for the same quantity. The pricing for each pre-funded warrant and its corresponding warrant was set at $1.519. Following this announcement, Lipella Pharmaceuticals witnessed a significant decline in its stock price.
At the time of this publication, Lipella Pharmaceuticals Inc stock (LIPO) has witnessed a decline.
Lipella Pharmaceuticals Inc
Current Price: $1.16
Change : -0.53
Change (%): (-31.36%)
Source: Tomorrow Events Market Data
Facilitating this transaction, H.C. Wainwright & Co. served as the exclusive placement agent.
The warrants possess an exercise price of $1.40 per share, enabling immediate exercise upon issuance, with an expiration date set three years from the issuance date.
Lipella stands to gain approximately $2 million in gross proceeds from this private placement, prior to factoring in placement agent fees and other associated offering expenses. The company’s intention is to allocate the net proceeds towards bolstering working capital and addressing general corporate requirements.
This private placement of securities, as described, took place under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and the corresponding Regulation D. These securities, along with the common stock shares underlying the warrants and pre-funded warrants, have not undergone registration under the Act or pertinent state securities laws. Consequently, these securities from the private placement, along with the associated common stock shares, may only be offered or traded within the United States following compliance with an effective registration statement or an applicable exemption from Act registration requirements and relevant state securities laws.
As part of the agreement, the Company commits to submitting an initial registration statement with the Securities and Exchange Commission (“SEC”) covering the resale of the common stock shares underlying the warrants and pre-funded warrants, no later than seven business days subsequent to finalizing the relevant definitive agreements. Furthermore, the registration statement is set to be declared effective within 75 days from the date of the relevant definitive agreements, in the event of a “full review” by the SEC.
Notably, just last week, Lipella Pharmaceuticals experienced a remarkable surge in its stock price following the announcement of approval from the U.S. Food and Drug Administration (FDA) for an Investigational New Drug (IND) application. This development marked a significant milestone for the company in its pursuit of advancing innovative solutions for critical medical needs.