Processa Pharmaceuticals announces closing of a public offering, raising $5 million for developing advanced chemotherapeutic drugs.
Quiver AI Summary
Processa Pharmaceuticals, Inc. has successfully completed a public offering, raising $5 million to support its development of next-generation chemotherapeutic drugs aimed at improving efficacy and safety for cancer treatment. The offering consisted of 8,050,672 shares of common stock along with Series A and Series B warrants, with participation from the CEO, board members, and institutional investors. The shares were priced at $0.615 for institutional investors and $0.7975 for the CEO and board members. The transaction was facilitated by A.G.P./Alliance Global Partners as the placement agent. The registration for the offering was declared effective by the SEC prior to the closing on January 29, 2025. Processa’s innovative approach combines existing FDA-approved oncology therapies with a focus on enhancing treatment effectiveness and patient tolerability.
Potential Positives
- Processa Pharmaceuticals successfully closed a public offering, securing gross proceeds of $5 million, which enhances its funding for future drug development.
- The participation of the Company's Chief Executive Officer and board members in the offering demonstrates their confidence in the company's direction and potential for growth.
- The closing of the offering was conducted in compliance with SEC regulations, which adds credibility to the company's fundraising efforts.
Potential Negatives
- The public offering may dilute existing shareholders’ equity, as it involves issuing a significant number of shares (8,050,672 shares) which could negatively affect share value.
- The combined purchase price per share for institutional investors ($0.615) and for insiders ($0.7975) indicates a low share valuation, which may signal to the market that investors do not foresee strong future performance.
- The company's reliance on a public offering for funding raises concerns about financial stability and may indicate insufficient operating capital to sustain ongoing or future operations without external financing.
FAQ
What is Processa Pharmaceuticals' recent public offering about?
Processa Pharmaceuticals has closed a public offering of 8,050,672 shares of common stock and warrants, raising $5 million.
Who participated in the public offering?
The offering included participation from the CEO, board members, and existing institutional investors, along with a healthcare-focused institutional investor.
What are the benefits of Processa's Next Generation Chemotherapy drugs?
Processa’s NGC drugs aim to improve chemotherapy efficacy and safety by altering drug metabolism while maintaining cancer cell-killing mechanisms.
How can I obtain the final prospectus for the offering?
The final prospectus is available on the SEC's website or by contacting A.G.P./Alliance Global Partners for direct access.
What is the purpose of this press release?
This press release announces the closing of the public offering and provides details for investors and interested parties regarding the event.
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 Insider Trading Activity
$PCSA insiders have traded $PCSA stock on the open market 3 times in the past 6 months. Of those trades, 3 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $PCSA stock by insiders over the last 6 months:
- DAVID YOUNG (Pres. Research & Development) purchased 124,500 shares for an estimated $99,288
- GEORGE K NG (Chief Executive Officer) purchased 87,200 shares for an estimated $69,542
- PATRICK LIN (Chief Business - Strategy Off) purchased 43,500 shares for an estimated $34,691
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$PCSA Hedge Fund Activity
We have seen 5 institutional investors add shares of $PCSA stock to their portfolio, and 3 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
- ALLWORTH FINANCIAL LP removed 85 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $75
- ROYAL BANK OF CANADA removed 4 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $5
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HANOVER, Md, Jan. 30, 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, announces the closing of its previously announced “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 closing occurred on January 29, 2025.
The gross proceeds from the offering, before deducting placement agent fees and other offering expenses payable by the Company, were $5 million (excluding any proceeds that may be received upon the exercise of Series A warrants and Series B warrants).
A.G.P./Alliance Global Partners acted 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 was made only by means of a prospectus forming part of the effective registration statement relating to the offering. A final prospectus relating to the offering has been filed with the SEC. Electronic copies of the final prospectus may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained 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 .
Company Contact:
Patrick Lin
(925) 683-3218
[email protected]
Investor Relations Contact:
Yvonne Briggs
Alliance Advisors IR
(310) 691-7100
[email protected]