GRI Bio, Inc. (NASDAQ:GRI), a pharmaceutical preparations company, has updated its at-the-market (ATM) offering program, as per a recent SEC filing. The La Jolla, California-based firm, previously known as Vallon Pharmaceuticals, Inc., announced on Friday that it has filed a prospectus supplement to increase the maximum number of shares available for sale.
The updated prospectus supplement allows for the issuance of up to an aggregate of $2,644,609 worth of the company's common stock, each share with a par value of $0.0001. This increase does not include the approximately $961,272 worth of shares that have already been sold under the existing Sales Agreement with H.C. Wainwright & Co., LLC, which was originally dated May 20, 2024.
The legal opinion concerning the legality of the issuance and sale of the shares was provided by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., and is attached as an exhibit to the current report. This move by GRI Bio reflects an effort to bolster its capital through the ATM offering, a common practice among public companies seeking to finance operations or growth initiatives without the need for a traditional secondary offering.
GRI Bio operates under the jurisdiction of Delaware and has its fiscal year-end on December 31. The company's common stock is traded on the Nasdaq Capital Market, a venue for emerging growth companies like GRI Bio, which is taking advantage of the flexible fundraising mechanisms available to it.
In other recent news, GRI Bio, Inc. has announced significant financial developments, including an expansion of its at-the-market equity offering by over $1 million. The company has also priced a public offering of over 2 million shares of common stock and Series C warrants, expected to generate about $4 million in gross proceeds. As part of its financial strategy, GRI Bio has also initiated a 1-for-13 reverse stock split, reducing the total outstanding shares from approximately 6.6 million to about 508,091 shares.
In compliance news, GRI Bio has regained compliance with Nasdaq's listing standards, canceling a previously scheduled hearing with the Nasdaq Hearings Panel. On the research front, the company reported positive preclinical data for its lead drug candidate, GRI-0621, which targets Idiopathic Pulmonary Fibrosis, and for its type 2 Natural Killer T (NKT) cell activators, GRI-0803 and GRI-0124, in treating systemic lupus erythematosus.
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