Elutia Inc. announces a $15 million direct offering of shares and prefunded warrants, expected to close February 4, 2025.
Quiver AI Summary
Elutia Inc. has announced a definitive agreement with investors to sell 5,520,000 shares of its Class A common stock at $2.50 per share and 480,000 prefunded warrants for $2.499 each, which are immediately exercisable at $0.001 per warrant. The gross proceeds from this registered direct offering are expected to be approximately $15 million, pending customary closing conditions, with the deal slated to close around February 4, 2025. The proceeds will be used for working capital and general corporate purposes. Lake Street Capital Markets is serving as the exclusive placement agent for the offering. The securities are being offered under an effective shelf registration statement with the SEC. This press release includes forward-looking statements that may be subject to various risks and uncertainties, and Elutia will not update these statements unless required by law.
Potential Positives
- Elutia Inc. successfully secured approximately $15.0 million in gross proceeds through a registered direct offering, enhancing its financial liquidity.
- The financing will support working capital and other general corporate purposes, indicating strategic planning for future business operations.
- The offering involves the sale of Class A common stock and prefunded warrants, indicating investor interest and confidence in the company's growth potential.
Potential Negatives
- The offering price of $2.50 per share is significantly below the usual market price, which could indicate a lack of confidence in the company's current valuation.
- Issuing new shares might dilute existing shareholders' equity, potentially leading to dissatisfaction among current investors.
- The reliance on new capital from the offering raises concerns about the company's financial health and operational sustainability without this influx of cash.
FAQ
What is Elutia Inc.'s latest stock offering?
Elutia Inc. has announced a definitive agreement for the sale of 5,520,000 shares of Class A common stock and 480,000 prefunded warrants.
What is the price per share for Elutia's stock offering?
The purchase price is $2.50 per share for the Class A common stock and $2.499 per prefunded warrant.
How much is Elutia expected to raise from the offering?
The gross proceeds from the offering are expected to be approximately $15.0 million before deducting fees and expenses.
When is the offering expected to close?
The offering is anticipated to close on or about February 4, 2025, subject to customary closing conditions.
What will Elutia use the proceeds from the offering for?
Elutia intends to use the proceeds for working capital and other general corporate purposes.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ELUT Hedge Fund Activity
We have seen 22 institutional investors add shares of $ELUT stock to their portfolio, and 6 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- NANTAHALA CAPITAL MANAGEMENT, LLC added 1,069,250 shares (+59.5%) to their portfolio in Q3 2024, for an estimated $4,073,842
- AIGH CAPITAL MANAGEMENT LLC added 813,126 shares (+47.9%) to their portfolio in Q3 2024, for an estimated $3,098,010
- ALYESKA INVESTMENT GROUP, L.P. added 551,468 shares (+599.6%) to their portfolio in Q3 2024, for an estimated $2,101,093
- KNOLLWOOD INVESTMENT ADVISORY, LLC added 525,394 shares (+128.4%) to their portfolio in Q3 2024, for an estimated $2,001,751
- EAM INVESTORS, LLC added 97,000 shares (+384.0%) to their portfolio in Q3 2024, for an estimated $369,570
- PERKINS CAPITAL MANAGEMENT INC added 76,450 shares (+9.8%) to their portfolio in Q3 2024, for an estimated $291,274
- GEODE CAPITAL MANAGEMENT, LLC added 63,047 shares (+50.3%) to their portfolio in Q3 2024, for an estimated $240,209
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
SILVER SPRING, Md., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Elutia Inc. (Nasdaq: ELUT) (“Elutia” or the “Company”) today announced it has entered into a definitive agreement with investors for the purchase and sale of 5,520,000 shares of the Company’s Class A common stock at a purchase price of $2.50 per share and 480,000 prefunded warrants to purchase up to 480,000 shares of the Company’s Class A common stock at a purchase price of $2.499 per prefunded warrant in a registered direct offering. The prefunded warrants are immediately exercisable at an exercise price of $0.001 per each prefunded warrant. The gross proceeds to Elutia from the offering are expected to be approximately $15.0 million, before deducting placement agent fees and other offering expenses payable by Elutia. The offering is expected to close on or about February 4, 2025, subject to customary closing conditions.
Lake Street Capital Markets is acting as the exclusive placement agent for the offering.
Elutia intends to use the proceeds from the proposed offering for working capital and other general corporate purposes.
The securities are being offered and sold by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-267197) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on September 8, 2022. The offering of such securities is being made only by means of a prospectus supplement that forms a part of the registration statement. Copies of the prospectus supplement and accompanying base prospectus will be filed with the SEC and will be available free of charge on the SEC's website at http://sec.gov. Electronic copies of the prospectus supplement and accompanying base prospectus may also be obtained, when available, from Lake Street Capital Markets, LLC at 920 Second Avenue South, Unit 700, Minneapolis, MN 55402, or e-mail at [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the completion of the Company’s offering and the anticipated use of proceeds therefrom. These statements are based on the Company’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements here due to changes in economic, business, competitive or regulatory factors, and other risks and uncertainties, including those set forth in the Company’s filings with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. The Company does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.
Contact:
Elutia, Inc.
[email protected]