Biofrontera Inc. Announces $4.5M Registered Direct Offering Priced At-The-Market Under NASDAQ Rules
Portfolio Pulse from Benzinga Newsdesk
Biofrontera Inc. (NASDAQ:BFRI) has entered into a securities purchase agreement with an institutional investor to issue and sell 1,205,000 shares of its common stock and warrants to purchase up to 1,807,000 shares at $3.55 per share. The company also agreed to adjust the strike price of 385,236 outstanding warrants held by the investor to $3.55. The offering is expected to close on November 2, 2023. The net proceeds will be used for working capital and general corporate purposes.
October 31, 2023 | 3:48 pm
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Biofrontera's direct offering could dilute existing shareholders' equity, potentially leading to a short-term decrease in stock price. However, the funds raised will be used for working capital and general corporate purposes, which could strengthen the company's financial position in the long term.
Direct offerings often lead to dilution of existing shareholders' equity, which can result in a short-term decrease in stock price. However, the funds raised from this offering will be used for working capital and general corporate purposes, which could potentially strengthen the company's financial position in the long term.
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