FWBI - First Wave BioPharma Announces Exercise of Warrants and Issuance of New Warrants in a Private Placement for $4.8 Million Gross Proceeds Priced | Benzinga
BOCA RATON, Fla., Dec. 27, 2023 (GLOBE NEWSWIRE) -- First Wave BioPharma, Inc. ("First Wave BioPharma" or the "Company") (NASDAQ:FWBI), a clinical-stage biopharmaceutical company specializing in the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases, today announced it has entered into agreements with certain holders of its existing warrants exercisable for 881,337 shares of its common stock, in the aggregate, to exercise their warrants at a reduced exercise price of $5.50 per share, in exchange for new warrants as described below. The aggregate gross proceeds from the exercise of the existing warrants is expected to total approximately $4.8 million, before deducting financial advisory fees. The reduction in the exercise price of the existing warrants and the issuance of the new warrants was structured as an at-market transaction under Nasdaq rules.
Roth Capital Partners is acting as the Company's financial advisor for this transaction.
The shares of common stock issuable upon exercise of the existing warrants are registered for resale pursuant to a resale registration statements on Form S-3 (File No. 333-2744634) which was declared by the Securities and Exchange Commission (SEC) on September 29, 2023, a resale registration statement on Form S-3 ((File No. 333-274634) which was declared effective by the SEC on September 29, 2023, and a resale registration statement on Form S-1 (File No. 333-272404) which ws declared effective by the SEC on July 17, 2023.
In consideration for the immediate exercise of the existing warrants for cash and the payment of $0.125 per share underlying the new warrants, the exercising holders will receive new warrants to purchase shares of common stock in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "1933 Act"). The new warrants will be exercisable into an aggregate of up to 1,762,674 ...