GRI Bio Confirms Exercise of Warrants

2 min read | October 22, 2024 04:09 AM PDT | By Team Kalkine Media

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GRI Bio Confirms Exercise of Warrants — Image source: Shutterstock

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Highlights

GRI Bio has entered into definitive agreements to exercise existing warrants, allowing the purchase of 762,236 shares at a reduced price.

The company will issue new unregistered Series D-1 and D-2 warrants in conjunction with this exercise.

The offering is anticipated to generate gross proceeds of approximately $0.8 million and is set to close around October 22, 2024.

GRI Bio (NASDAQ:GRI) has announced definitive agreements regarding the exercise of existing warrants, which will facilitate the purchase of 762,236 shares of common stock at a significantly reduced price of $1.00 per share, down from the original price of $14.30. This strategic move aims to enhance liquidity and strengthen the company's financial position.

In conjunction with this exercise, GRI Bio will issue new unregistered Series D-1 and D-2 warrants, each representing the right to purchase up to 762,236 shares at the same reduced price of $1.00 per share. The Series D-1 warrants will have a term of five years, while the Series D-2 warrants will have a shorter term of 18 months. These new warrants will provide holders with additional flexibility and potential upside in GRI Bio's stock.

The offering is anticipated to close around October 22, 2024, and is expected to generate gross proceeds of approximately $0.8 million. H.C. Wainwright & Co. is acting as the exclusive placement agent for this transaction. The net proceeds from the offering are intended for working capital and general corporate purposes, supporting the company’s operational needs and strategic initiatives.

It is important to note that the new warrants are being offered in a private placement and have not been registered under the Securities Act, which may limit their resale and liquidity options for holders. This transaction reflects GRI Bio’s commitment to strengthening its balance sheet and ensuring that it has the necessary resources to continue its development efforts and operational growth. As the company navigates this financing strategy, it aims to bolster its capabilities in the competitive biotechnology landscape.

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