NRBO - NeuroBo slumps 43% on $30M public offering $15M private placement

NeuroBo Pharmaceuticals ( NASDAQ: NRBO ) stock fell ~43% on Friday after the company priced a public offering to raise gross proceeds of ~$30M.

The offering consists of ~2.4M class A units priced at $3 apiece, with each unit consisting of one common stock, a Series A warrant to buy one common share at an exercise price of $3 per share; and a series B warrant to buy one common stock at $3.00 per share.

The offering also comprises of ~2.6M class B units priced at a $3 per unit, with each unit consisting of one Series B Convertible Preferred Stock, convertible into one common share, one Series A Warrant and one Series B Warrant.

The Series A Warrants and the Series B Warrants will only be exercisable upon stockholder approval, the company noted.

NeuroBo added that a total of ~2.4M common stock, ~2.6M shares of Series B Convertible Preferred Stock, and warrants to buy up to 10M common shares will be issued.

The Company has granted the underwriters a 45-day option to buy up to additional 750K common shares, additional Series A Warrants to buy up to 750K shares and/or additional Series B Warrants to purchase up to 750K shares.

In addition, NeuroBo said that in a concurrent private placement it will sell $15M of securities consisting of Series A Convertible Preferred Stock and warrants to buy common shares to Dong-A St.

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