NEW YORK - Eyenovia, Inc. (NASDAQ: NASDAQ:EYEN), a company specializing in ophthalmic medication delivery technology, has entered into an agreement with a healthcare-focused institutional investor for a registered direct offering. The transaction involves the sale of over 12 million shares and warrants for an additional 24 million shares at a price of $0.1076 each. The offering, which is expected to close on or about November 26, 2024, is projected to raise approximately $1.3 million before fees and expenses.
The warrants, exercisable six months from the date of issuance, will also have an exercise price of $0.1076 and a five-year term. Eyenovia plans to allocate the net proceeds for working capital and general corporate purposes. This includes potential repayment of debt under its agreement with Avenue Capital Management II, L.P., further development of its Optejet device, and commercialization of its products Mydcombi and clobetasol propionate.
Eyenovia's proprietary Optejet platform is designed to enhance the delivery of topical ophthalmic medications, potentially improving patient compliance and treatment outcomes. The company currently markets products for post-surgical pain and inflammation, as well as Mydcombi for pupil dilation.
The offering is being conducted under Eyenovia's existing shelf registration statement, previously filed and declared effective by the SEC on October 8, 2024. Chardan Capital Markets, LLC is acting as the sole placement agent for the offering.
The company's forward-looking statements include expectations for the offering's closing, the anticipated use of proceeds, and strategic alternatives to maximize shareholder value. These statements are subject to risks and uncertainties that may cause actual results to differ materially.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities. The sale of these securities will not be lawful in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.
In other recent news, Eyenovia, Inc. has made several strategic moves to address its financial situation. The company has secured a deferral of principal and interest payments on its outstanding debt with Avenue Capital Management L.P., until February 2025. This is part of Eyenovia's broader restructuring efforts, which include a reduction of over 70% in personnel-related expenses. The company ended Q3 2024 with a net loss of $7.9 million and is actively exploring strategic alternatives to enhance stakeholder value.
Eyenovia's recent financial challenges have led to a downgrade in stock rating from Buy to Neutral by H.C. Wainwright and Brookline Capital Markets. Despite this, Eyenovia continues to develop collaborations with Formosa Pharmaceuticals, Senju Pharmaceuticals, and SGN Nanopharma, aiming to tap into the $3 billion U.S. dry eye market.
The company is nearing Phase III efficacy data readout for MicroPine and has launched MydCombi and Clobetasol, showing strong interest and efficacy. Furthermore, Eyenovia is developing its Gen 2 Optejet device, promising improved manufacturing efficiency. These are recent developments in Eyenovia's business operations.
InvestingPro Insights
As Eyenovia, Inc. (NASDAQ: EYEN) moves forward with its registered direct offering, investors should consider some key financial metrics and insights provided by InvestingPro. The company's market capitalization stands at a modest $9.75 million, reflecting its current position in the ophthalmic medication delivery technology sector.
One of the most striking InvestingPro Tips is that Eyenovia is "quickly burning through cash." This aligns with the company's decision to raise additional funds through the offering, which is intended for working capital and general corporate purposes. The tip that the company "operates with a moderate level of debt" further contextualizes the potential use of proceeds for debt repayment under its agreement with Avenue Capital Management II, L.P.
Another relevant InvestingPro Tip indicates that "analysts anticipate sales growth in the current year." This positive outlook could be related to Eyenovia's plans to further develop its Optejet device and commercialize products like Mydcombi and clobetasol propionate. However, it's important to note that despite this anticipated growth, the company is "not profitable over the last twelve months," with a significant operating income margin of -115,461.33% for the last twelve months as of Q3 2024.
The stock's recent performance has been challenging, with InvestingPro Data showing a one-month price total return of -80.04% and a year-to-date return of -94.83%. This context is crucial for understanding the timing and pricing of the current offering.
For investors seeking a more comprehensive analysis, InvestingPro offers 21 additional tips for Eyenovia, providing a deeper dive into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.