MOUNTAIN VIEW, Calif. - Aditxt, Inc. (NASDAQ: ADTX), an innovation company specializing in immune system modulation technologies, announced today it has agreed to a securities purchase with institutional investors. The deal involves the sale of approximately 1.13 million shares at $1.06 each, totaling an expected gross of $1.2 million. The transaction is set to close on or about today, subject to customary conditions.
H.C. Wainwright & Co. is serving as the sole placement agent for this offering. Aditxt plans to allocate $500,000 of the net proceeds to fulfill obligations under its amended merger agreement with Evofem Biosciences (OTC:EVFM), Inc., with the remainder earmarked for working capital and other general corporate purposes.
The securities are offered through a shelf registration statement filed with the SEC on July 11, 2024, and declared effective on August 6, 2024. Details of the offering will be available in the final prospectus supplement filed with the SEC. This press release does not constitute a sale offer or solicitation in any jurisdiction where such an action would be unlawful.
Aditxt's portfolio includes Adimune™, focusing on immune system therapeutics; Adivir™, aimed at improving national and population health; and Pearsanta™, providing personalized lab testing through its certified clinical laboratory in Richmond, VA.
This announcement contains forward-looking statements about Aditxt's product development, business strategies, and financial performance. These statements are not guarantees of future results and are subject to risks and uncertainties. The company does not undertake any obligation to update forward-looking statements to reflect events after the date of this press release.
The information in this article is based on a press release statement.
In other recent news, biopharmaceutical company Aditxt, Inc. has made several strategic moves to strengthen its financial position. The company has increased its authorized common stock from 100 million to 1 billion shares, potentially facilitating future equity financing and other corporate actions. Aditxt has also entered into a Securities Exchange Agreement, swapping pre-funded warrants for Series C-1 Convertible Preferred Stock and new common stock purchase warrants.
Despite facing a loan default of $55,256.03 to Sixth Borough Capital Fund, LP, Aditxt managed to raise approximately $5.2 million through the issuance of senior notes and a private placement. Meanwhile, the company's subsidiary, Pearsanta, Inc., has proposed a novel blood test for early detection of ovarian cancer.
Aditxt is also part of an ongoing merger agreement with Evofem Biosciences, Inc., which recently acquired SOLOSEC, a one-dose oral treatment for bacterial vaginosis and trichomoniasis, from Lupin Limited. Evofem Biosciences secured a fifth U.S. patent for its contraceptive gel, Phexxi.
These recent developments reflect the evolving dynamics within both Aditxt and Evofem Biosciences. Aditxt is also in the process of acquiring Appili Therapeutics Inc., while addressing a default in rent payment with its landlord.
InvestingPro Insights
As Aditxt, Inc. (NASDAQ: ADTX) engages with institutional investors in a new securities purchase, there are several key financial metrics and analyst insights that may be of interest to investors. According to InvestingPro data, Aditxt's market capitalization stands at a modest $3.86 million, reflecting the scale of the company within the biotechnology sector. The company's revenue for the last twelve months as of Q1 2024 is reported at $0.51 million, with a significant decline in revenue growth, down by 46.23%. This contraction in revenue highlights challenges in the company's financial growth trajectory.
InvestingPro Tips suggest Aditxt operates with a significant debt burden and is quickly burning through cash, which are important considerations for investors evaluating the company's financial health and sustainability. Furthermore, analysts do not anticipate the company will be profitable this year, underscoring the importance of the capital raised through the latest securities purchase for bolstering the company's financial position and supporting its strategic initiatives.
Investors should note that the recent performance of Aditxt's stock has been volatile, with a significant return over the last week of 20.19%, yet with substantial declines over longer periods, including a 91.37% decrease in price total return over the last year. This volatility is a critical factor for potential investors to consider in the context of the company's overall performance and market sentiment.
For those interested in deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ADTX, which provide further insights into Aditxt's valuation, financial health, and market performance.
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