Daré Bioscience Secures $12M In Royalty-Backed Investment Structure; Daré Issued To The Investor A 5-Year Warrant To Purchase An Aggregate Of 5M Shares Of Daré's Common Stock At An Exercise Price Of $0.3467 Per Share
Portfolio Pulse from Happy Mohamed
Daré Bioscience, Inc. (NASDAQ:DARE) has secured a royalty-backed investment structure providing $5 million initially and up to $7 million in additional tranches. The investor will receive a percentage of royalties and milestones from Daré's license agreement for XACIATO with Organon until a targeted return is achieved. Daré also issued a 5-year warrant for 5 million shares at $0.3467 per share, a 10% premium to the previous closing price.
December 26, 2023 | 1:02 pm
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Daré Bioscience receives $5M upfront and access to $7M more in a royalty-backed deal, with an investor entitled to future royalties from XACIATO. Daré also issued warrants for 5M shares at a premium, potentially diluting current shareholders.
The investment provides Daré with immediate capital, which is positive for the company's financial health and could support its stock price in the short term. However, the issuance of warrants at a premium could lead to future dilution of existing shares, which might offset some of the positive sentiment. The impact is neutral as the benefits of immediate capital are balanced by the potential dilution.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100