Fortress Biotech Engages in $8 Million Stock Offering Initiative

Fortress Biotech Engages in $8 Million Stock Offering Initiative

Fortress Biotech, Inc. (Nasdaq: FBIO) is an innovative player in the biopharmaceutical industry, actively working towards enhancing its long-term value for shareholders through strategic asset acquisition and advancement. Recently, the company announced a significant step involving an $8 million registered direct offering along with concurrent private placements.

Details of the Direct Offering

On the 19th of September, Fortress Biotech finalized securities purchase agreements with institutional investors focused on healthcare, enabling them to issue 3,939,394 shares of their common stock. The purchase price for the shares is set at $1.65, a strategic move aiming to bolster the company’s financial footing.

Warrants and Additional Investments

As an integral part of the offering, the company also agreed to provide the same investors with warrants, which enable them to purchase an equivalent number of shares of common stock. These warrants come with an exercise price of $1.84 per share, with an activation period of six months post-issuance, valid for five and a half years.

Private Placements Involving Insider Investments

In a noteworthy development, Fortress Biotech’s Chairman, CEO, and President, referred to as the Insider, personally acquired 763,359 shares at a price of $1.84, mirroring the closing bid price on the date of the agreement. This purchase also included warrants granting the right to acquire the same number of shares. The private investment demonstrates the Insider's confidence in the company's future trajectory.

Financial Impact and Utilization of Funds

The gross proceeds anticipated from these offerings are estimated to be around $8 million. These funds are earmarked for operational expenses, encapsulating various aspects such as research and development, clinical trials, and potential product acquisitions. Such financial strategies reflect Fortress Biotech's commitment to fostering innovation and achieving growth.

Role of A.G.P./Alliance Global Partners

A.G.P./Alliance Global Partners has been appointed as the sole placement agent for these offerings, expected to close shortly after the announcement, contingent on customary conditions being met. This partnership is crucial for ensuring a smooth transition and execution of the offerings.

Registration and Compliance Standards

The shares targeted for the institutional investors are being offered under a registration statement on Form S-3. This statement has previously gained approval from the Securities and Exchange Commission, underscoring the regulatory compliance necessary for such financial maneuvers. Following the direct offering, Fortress will file a final prospectus supplement with the SEC, ensuring transparency and adherence to legal frameworks.

About Fortress Biotech

Fortress Biotech, Inc. stands at the forefront of the biopharmaceutical landscape, making strides in acquiring and nurturing assets that serve to enhance shareholder value. With a diverse portfolio consisting of seven marketed prescription products and over 20 programs actively in development, Fortress is well-positioned across several key therapeutic areas, including oncology and gene therapy. This diversified approach not only promotes innovation but also opens numerous avenues for revenue generation.

Building Valuable Partnerships

In its quest for enhancement and expansion, Fortress has forged partnerships with leading academic institutions and biopharmaceutical companies. Collaborations with entities such as AstraZeneca and Nationwide Children’s Hospital illustrate Fortress' commitment to maximizing each opportunity, thus fostering an environment for groundbreaking advancements in healthcare.

Frequently Asked Questions

What is the purpose of Fortress Biotech's recent stock offering?

The recent stock offering aims to raise capital for various operational expenses, including research and development.

Who is the sole placement agent for the offering?

A.G.P./Alliance Global Partners is acting as the sole placement agent for Fortress Biotech's stock offering.

How many shares of common stock were issued?

Fortress Biotech issued 3,939,394 shares of common stock in the registered direct offering.

What does the private placement entail for the Insider?

The Insider purchased 763,359 shares at a price of $1.84, showcasing confidence in the company's direction.

How does Fortress Biotech comply with regulatory standards?

The shares offered to investors are being made under a registration statement on Form S-3, approved by the SEC, ensuring regulatory compliance.

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