Dublin-based Iterum Therapeutics plc (NASDAQ:ITRM) announced today that it has established the close of business on Monday, July 16, 2024, as the record date for its upcoming rights offering. The pharmaceutical company, which specializes in the development of treatments for infections caused by multi-drug resistant pathogens, disclosed the move in a recent 8-K filing with the Securities and Exchange Commission (SEC).
The rights offering, set at a subscription price of $1.21 per unit, will allow current shareholders and certain warrant holders to purchase a total of 8,503,800 units. These units include one ordinary share and warrants to purchase additional shares at the same price—one warrant valid for one year and another for five years. Each subscription right entitles the holder to buy 0.50 units at $0.605, consisting of 0.50 ordinary shares and proportional fractions of 1-year and 5-year warrants.
Iterum Therapeutics has stated that no fractional shares or warrants will be issued, requiring participants to purchase whole units. Shareholders and warrant holders must hold a minimum number of shares to participate, with those holding less than two shares potentially unable to take part in the rights offering.
Those who fully exercise their basic subscription rights will be eligible for an over-subscription privilege, allowing them to purchase additional unsubscribed units. However, if over-subscription requests exceed available units, the units will be allocated pro-rata among over-subscribing holders. The rights offering is non-transferable and must be exercised during the designated subscription period, anticipated to start around Friday, July 22, 2024, and last for at least 14 days.
Iterum Therapeutics has indicated that the subscription period may be extended, amended, or canceled at any time before the expected expiration date of Tuesday, August 6, 2024. Details regarding the rights offering are subject to change, and further information will be provided in a prospectus to be filed with the SEC prior to the offering's commencement.
In other recent news, Iterum Therapeutics has been making significant strides in its drug development and financial performance. The U.S. Food and Drug Administration (FDA) has set a review date of October 25, 2024, for Iterum's oral sulopenem antibiotic, a drug intended to treat uncomplicated urinary tract infections in adult women. The FDA's acceptance of the New Drug Application (NDA) resubmission marks a significant step for the company, moving it closer to potentially bringing the drug to the market.
In their financial update, Iterum Therapeutics reported a decrease in operating expenses and an improved net loss for the first quarter of 2024. Total operating expenses for the quarter were $6.2 million, down from $8.5 million in the same period the previous year. The net loss on a U.S. GAAP basis was $7.1 million, an improvement from a net loss of $9.9 million in the first quarter of 2023.
These are recent developments in the company's journey. Iterum Therapeutics is also exploring strategic alternatives, including the potential sale or license of Sulopenem. The company's CEO expressed confidence in the potential FDA approval of Sulopenem and the company's financial situation, with $18.2 million in cash and cash equivalents expected to fund operations into 2025.
InvestingPro Insights
In light of Iterum Therapeutics plc's (NASDAQ:ITRM) upcoming rights offering, current and potential investors may benefit from recent financial metrics and professional insights. According to InvestingPro, the company's market capitalization stands at a modest $20.13 million, underscoring its small-cap status in the pharmaceutical industry. Despite a notable 8.04% return over the last week, the company's performance over longer periods appears less optimistic, with a 6-month price total return of -30.26% and a year-to-date return of -38.58%.
InvestingPro Tips highlight that Iterum Therapeutics is rapidly burning through cash and has not been profitable over the last twelve months. Moreover, the company's valuation suggests a poor free cash flow yield and weak gross profit margins. These financial challenges are accompanied by considerable stock price volatility, which could impact investor sentiment, especially in the context of a rights offering.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights and tips that could guide investment decisions regarding Iterum Therapeutics. By using the coupon code PRONEWS24, readers can obtain an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable information to navigate the complexities of pharmaceutical investments. There are 6 more InvestingPro Tips available that could provide deeper understanding of Iterum Therapeutics' financial health and market position.
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