Processa Pharmaceuticals announces a $5 million public offering, including shares and warrants, with participation from executives and investors.
Quiver AI Summary
Processa Pharmaceuticals, Inc. announced the pricing of a public offering aimed at raising approximately $5 million, with participation from its CEO, board members, and institutional investors. The offering includes 8,050,672 shares of common stock and accompanying warrants, priced at $0.615 per share for institutional investors and $0.7975 for the CEO and board members. Shareholders will need to approve the issuance of shares upon warrant exercise, and if approval is not obtained, the company will hold meetings every 90 days until it is secured. The expected closing date is January 29, 2025. A.G.P./Alliance Global Partners is the placement agent for this offering, which is part of Processa's strategy to develop enhanced chemotherapy drugs with improved safety and efficacy.
Potential Positives
- The company successfully priced a public offering, raising gross proceeds of $5 million, which will support its operations and development efforts.
- Participation from the Chief Executive Officer and certain board members in the offering signals strong confidence in the company's future and alignment with institutional investors.
- The offering includes Series A and Series B warrants, providing potential for additional capital through their exercise, contingent on stockholder approval.
- A.G.P./Alliance Global Partners, a recognized placement agent, is facilitating the offering, potentially enhancing market credibility and investor interest.
Potential Negatives
- The offering's reliance on securing stockholder approval for the issuance of shares upon exercise of warrants introduces a significant risk; if approval is not obtained, the company will have to hold frequent stockholder meetings, which could indicate governance concerns or dissatisfaction among investors.
- The discounted pricing of shares in the offering, at $0.615 for institutional investors and $0.7975 for insiders, may signal potential challenges with the company's stock performance and investor sentiment, raising concerns about its valuation and market confidence.
- The company has not provided assurance that the public offering will be completed, highlighting uncertainties that could affect its financial stability and growth prospects.
FAQ
What is the primary focus of Processa Pharmaceuticals?
Processa Pharmaceuticals is focused on developing next-generation chemotherapeutic drugs that offer improved efficacy and safety for cancer patients.
How many shares are being offered in the public offering?
The company announced a public offering of 8,050,672 shares of common stock along with accompanying warrants.
What are the exercise prices for the Series A and Series B warrants?
The exercise price for both the Series A and Series B warrants is $0.65 per share.
When is the expected closing date for the offering?
The offering is expected to close on or about January 29, 2025, subject to customary closing conditions.
How can investors obtain the final prospectus for the offering?
The final prospectus will be available on the SEC's website and can also be requested from A.G.P./Alliance Global Partners.
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.
$PCSA Hedge Fund Activity
We have seen 5 institutional investors add shares of $PCSA stock to their portfolio, and 2 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MIRACLE MILE ADVISORS, LLC added 10,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $8,838
- GEODE CAPITAL MANAGEMENT, LLC added 2,456 shares (+14.2%) to their portfolio in Q3 2024, for an estimated $3,364
- TOWER RESEARCH CAPITAL LLC (TRC) added 641 shares (+21.4%) to their portfolio in Q3 2024, for an estimated $878
- UBS GROUP AG added 521 shares (+inf%) to their portfolio in Q3 2024, for an estimated $713
- MAIN STREET GROUP, LTD removed 100 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $137
- ROYAL BANK OF CANADA removed 4 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $5
- BANK OF AMERICA CORP /DE/ added 3 shares (+14.3%) to their portfolio in Q3 2024, for an estimated $4
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Full Release
HANOVER, MD, Jan. 27, 2025 (GLOBE NEWSWIRE) -- Processa Pharmaceuticals, Inc. (Nasdaq: PCSA) (“Processa” or the “Company”), a clinical-stage pharmaceutical company focused on developing the next generation of chemotherapeutic drugs with improved efficacy and safety, today announced the pricing of its “reasonable best efforts” public offering with participation from the Company’s Chief Executive Officer, certain board members, and existing institutional investors of the Company, along with a healthcare focused institutional investor, consisting of 8,050,672 shares of common stock (or pre-funded warrants in lieu thereof) and accompanying Series A warrants to purchase up to 8,050,672 shares of common stock (or pre-funded warrants in lieu thereof) and Series B warrants to purchase up to 4,025,336 shares of common stock at a combined purchase price per share (and accompanying warrants) of $0.615 for the institutional investors and $0.7975 for the Company’s Chief Executive Officer and certain board members.
The Series A warrants will have an exercise price of $0.65 per share, will be exercisable beginning on the effective date of stockholder approval and will expire five years from the date of stockholder approval. The Series B warrants will have an exercise price of $0.65 per share, will be exercisable beginning on the effective date of stockholder approval and will expire eighteen months from the date of stockholder approval.
The gross proceeds from the offering, before deducting placement agent fees and other offering expenses payable by the Company, are expected to be $5 million (excluding any proceeds that may be received upon the exercise of Series A warrants and Series B warrants). The offering is expected to close on or about January 29, 2025, subject to the satisfaction of customary closing conditions.
The Company intends to promptly, and in no event later than ninety (90) days after the consummation of the offering, seek stockholder approval for the issuance of shares of common stock issuable upon exercise of the Series A warrants and Series B warrants, but cannot assure that such stockholder approval will be obtained. The Company has agreed with the investors in this offering that, if it does not obtain stockholder approval for the issuance of the shares of common stock upon exercise of the Series A warrants and Series B warrants at the first stockholder meeting for such purpose after the offering, the Company will call a stockholder meeting every ninety (90) days thereafter until the earlier of the date it obtains such approval or the Series A warrants and Series B warrants are no longer outstanding.
A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.
A registration statement on Form S-1 (File No. 333-283986) relating to the offering was declared effective by the Securities and Exchange Commission (the "SEC") on January 27, 2025. The offering is being made only by means of a prospectus forming part of the effective registration statement relating to the offering. A preliminary prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained, when available, by contacting A.G.P./Alliance Global Partners at 590 Madison Avenue, 28th Floor, New York, NY 10022, by phone at (212) 624-2060 or e-mail at [email protected] .
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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.
About Processa Pharmaceuticals, Inc.
Processa is a clinical-stage pharmaceutical company focused on developing the Next Generation Chemotherapy (NGC) drugs with improved safety and efficacy. Processa’s NGC drugs are modifications of existing FDA-approved oncology therapies resulting in an alteration of the metabolism and/or distribution of these drugs while maintaining the existing mechanisms of killing the cancer cells. By combining its novel oncology pipeline with proven cancer-killing active molecules and its Regulatory Science Approach, Processa’s strategy is to develop more effective therapy options with improved tolerability for cancer patients through an efficient regulatory path.
For more information, visit our website at www.processapharma.com .
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements," including with respect to the public offering. No assurance can be given that the public offering discussed above will be completed. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements in this statement are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include, but are not limited to, those risks and uncertainties related to market and other conditions and satisfaction of customary closing conditions related to the public offering as well as those set forth in the Company's latest Annual Report on Form 10-K, quarterly report on Form 10-Q, registration statement on Form S-1 filed with the SEC and the preliminary prospectus included therein, and other filings made by the Company from time to time with the SEC. Copies of the registration statement can be accessed by visiting the SEC website at www.sec.gov . All forward-looking statements contained in this press release speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Company Contact:
Patrick Lin
(925) 683-3218
[email protected]
Investor Relations Contact:
Yvonne Briggs
Alliance Advisors IR
(310) 691-7100
[email protected]