Fortress Biotech Secures $8 Million Through Direct Offering

Fortress Biotech Completes $8 Million Funding Round

Fortress Biotech, Inc. (NASDAQ: FBIO) has officially announced its successful pricing of an $8 million registered direct offering accompanied by private placements. This innovative biopharmaceutical company is dedicated to acquiring and developing ground-breaking assets aimed at driving long-term shareholder value through various revenue streams.

Details of the Offering

On a recent date, Fortress Biotech entered into agreements with institutional investors focused on healthcare for the issuance and sale of 3,939,394 shares of its common stock. The shares are priced at $1.65 each, and accompanied by warrants for future purchases. The concurrent private placement also involved the same investors receiving warrants, which offer the option to purchase up to 3,939,394 additional shares at an exercise price of $1.84. Notably, these warrants will begin to exercise six months post-issuance and will remain valid for approximately five and a half years.

Insider Participation in the Offering

In a strong show of confidence, Fortress Biotech's Chairman, CEO, and President purchased 763,359 shares at a price equivalent to the closing bid price. In addition to this share acquisition, the insider received warrants that have a similar structure to those provided to institutional investors, further aligning leadership interests with those of shareholders.

Expected Use of Proceeds

The gross proceeds from this offering are expected to be around $8 million before any deductions for fees or expenses. Fortress Biotech plans to utilize the net proceeds in various operational capacities, including research and development, clinical trials, and potential acquisition of new products. This strategy reflects the company's commitment to enhancing its portfolio and boosting its market presence in the competitive biopharmaceutical landscape.

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

A.G.P./Alliance Global Partners is acting as the sole placement agent for this offering, which is expected to finalize soon. This partnership highlights the strategic alliances Fortress is fostering to propel its growth trajectory.

Registered Offering Details

The common stock associated with this offering is being conducted under the effective registration statement as disclosed by the Securities and Exchange Commission (SEC). Importantly, the existing warrants linked to the shares are offered through a concurrent private placement, promoting a structured approach to equity offerings.

About Fortress Biotech

Fortress Biotech, Inc. is a leading player in the biopharmaceutical field, actively involved in the acquisition and advancement of valuable assets. Currently, the company boasts seven marketed pharmaceutical products alongside over twenty development programs across various therapeutic areas including oncology and gene therapy. This diversified pipeline exemplifies Fortress’s dedication to maximizing value for its shareholders while addressing critical healthcare needs.

Partnerships and Collaborations

Fortress has established significant partnerships with globally recognized academic institutions and biopharmaceutical firms. This collaboration extends the company’s capabilities in product development and aligns with its mission of tapping into innovative solutions in healthcare.

For Investors and Media Inquiries

For any inquiries regarding this offering or general company information, investors can reach out to Jaclyn Jaffe at Fortress Biotech. Media inquiries can be directed to Tony Plohoros at 6 Degrees. Their insights and updates can provide investors with a better understanding of the strategic direction Fortress is taking.

Frequently Asked Questions

What is the significance of the $8 million offering?

The $8 million offering aims to bolster Fortress Biotech’s operational capabilities, enabling further investment in R&D and product development.

Who are the primary investors involved in this offering?

The primary investors are institutional investors focused on healthcare, indicating a strategic alignment with Fortress’s market goals.

How will Fortress use the funds generated from this offering?

The funds will be used for general corporate purposes including ongoing research, clinical trials, and potential new product acquisitions.

What role does the insider purchase play for shareholders?

The insider purchase demonstrates confidence in the company's future prospects, aligning leadership's interests closely with those of its shareholders.

What type of products is Fortress Biotech working on?

Fortress Biotech is engaged in developing a diverse range of pharmaceutical products, particularly in oncology, rare diseases, and gene therapy fields.

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