Jaguar Health, Inc. (NASDAQ:JAGX), a pharmaceutical company, has amended an existing agreement with its financial managers, Ladenburg Thalmann & Co. Inc. and Lucid (NASDAQ:LCID) Capital Markets, LLC, according to a recent SEC filing. The modification, known as the Fourth ATM Amendment, extends the term for Lucid to act as a manager under the At the Market Offering Agreement, which was originally dated December 10, 2021.
The extension, effective as of today, allows Lucid to continue in its role until November 30, 2024, with the possibility of further extension if mutually agreed upon by the involved parties. After this date, unless another amendment is made, Ladenburg Thalmann will become the sole manager of the agreement.
Alongside this amendment, Jaguar Health also filed a prospectus supplement with the SEC, updating the terms related to the Fourth ATM Amendment. This move ensures that all regulatory requirements are maintained in compliance with the securities laws.
The original agreement and its subsequent amendments outline the terms under which Jaguar Health may offer and sell its common stock. The Fourth ATM Amendment is significant as it affects the management structure of the offering and the duration of the agreement.
The details of the Fourth ATM Amendment are fully described in the exhibit attached to the SEC filing. However, it is important to note that this current report on Form 8-K does not serve as an offer to sell or a solicitation of an offer to buy any securities. Furthermore, the sale of securities will not be conducted in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
In other recent news, Jaguar Health has seen several significant developments. The company received a renewal from the FDA for its canine-specific drug, Canalevia-CA1, used to treat chemotherapy-induced diarrhea in dogs. Jaguar Health also reported a Q2 2024 net revenue increase of 16%, reaching $2.72 million, despite a reported net loss of $8.8 million in non-GAAP recurring EBITDA.
Jaguar Health has also secured new patents in Jordan and Hong Kong for the use of crofelemer, a plant-based prescription drug. Furthermore, the company has recently hired Susan Krizancic, a veteran of the biopharmaceutical industry, as National Sales Director for its subsidiary, Napo Pharmaceuticals.
The company has also announced the U.S. commercial launch of Gelclair, an FDA-approved treatment for oral mucositis, a common side effect of cancer therapy. Lastly, the company's Phase 3 OnTarget trial revealed significant benefits of crofelemer for adult breast cancer patients experiencing diarrhea due to cancer therapy. These are among the recent developments at Jaguar Health.
InvestingPro Insights
As Jaguar Health (NASDAQ:JAGX) extends its agreement with financial managers, it's crucial to consider the company's current financial position. According to InvestingPro data, JAGX has a market capitalization of just $9.22 million, reflecting its micro-cap status. The company's revenue for the last twelve months as of Q2 2024 stands at $10.19 million, with a concerning revenue growth decline of -7.89% over the same period.
InvestingPro Tips highlight some challenges facing the company. JAGX is "quickly burning through cash" and "not profitable over the last twelve months," which aligns with the reported operating income margin of -308.15%. These factors may explain the need for continued financial management support through the extended agreement.
The stock's performance has been notably poor, with InvestingPro data showing a -94.14% price total return over the past year. This significant decline underscores the importance of the company's financial strategies and potential capital raising activities through the amended At the Market Offering Agreement.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for JAGX, providing deeper insights into the company's financial health and market position.
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