MIAMI - Longeveron Inc. (NASDAQ: LGVN), a clinical stage biotechnology company, has announced a public offering of its Class A common stock and accompanying warrants, with the aim to raise approximately $5.25 million. The offering includes 2,234,043 shares or pre-funded warrants and equal number of warrants to purchase Class A common stock at a combined price of $2.35 per share or warrant. The warrants can be exercised immediately at the same price for five years post-issuance.
The closing of the offering is slated for April 10, 2024, contingent on standard closing conditions. H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction. Board members and insiders have expressed interest in participating up to $750,000, under the same terms.
Longeveron intends to allocate the net proceeds toward the clinical and regulatory development of its lead investigational product, Lomecel-B™, for various diseases including hypoplastic left heart syndrome (HLHS) and Alzheimer’s disease. The funds are also earmarked for obtaining regulatory approvals, capital expenditures, working capital, and other corporate purposes.
Additionally, Longeveron has agreed to amend certain existing warrants issued in October 2023. These amendments will reduce the exercise price to $2.35 per share and adjust the expiration dates post-closing of the offering.
The securities are offered through a registration statement on Form S-1, effective April 8, 2024. Prospective investors can obtain copies of the final prospectus, once available, through the SEC's website or by contacting H.C. Wainwright & Co.
Longeveron is focused on developing regenerative medicines for life-threatening and chronic aging-related conditions. Its Lomecel-B™ therapy, derived from bone marrow of young donors, is currently undergoing clinical trials for multiple indications.
The announcement clarifies that this press release does not constitute an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such jurisdiction. This news article is based on a press release statement.
InvestingPro Insights
In light of Longeveron Inc.'s recent public offering announcement, it's important to consider the company's financial health and market performance. According to InvestingPro data, Longeveron has a market capitalization of approximately $7.35 million, which reflects the company's current valuation in the market. The company's revenue for the last twelve months as of Q4 2023 stands at $0.71 million, indicating the size of its operations relative to its market cap. However, this comes alongside a notable revenue decline of 41.98% for the same period, signaling challenges in generating sales growth.
InvestingPro Tips for Longeveron also reveal critical insights: the company is currently not profitable over the last twelve months and holds more cash than debt on its balance sheet, which may provide some financial flexibility. The stock's Relative Strength Index (RSI) suggests it is in oversold territory, which could interest investors looking for potential rebounds or value plays. Nevertheless, it's important to note that the stock has experienced significant declines, with price drops of 91.57% over the last year and 57.69% over the last month.
For investors considering Longeveron's stock, these metrics and trends should be evaluated alongside the company's strategic initiatives, such as the development of Lomecel-B™. With 10 additional InvestingPro Tips available for Longeveron, including insights on cash burn rate and stock performance over various timeframes, interested parties can gain a deeper understanding of the company's prospects. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more detailed analysis and data at InvestingPro.
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