CUPERTINO, Calif. - Reviva Pharmaceuticals Holdings, Inc. (NASDAQ: RVPH), a company focusing on therapies for central nervous system, inflammatory, and cardiometabolic diseases, revealed its definitive agreement for a registered direct offering. The transaction involves the sale of 1,898,734 shares of common stock and equal warrants at $1.58 per share and warrant, expected to close on or about May 29, 2024.
The warrants, exercisable immediately at $1.455 each, will expire five years post-issuance. H.C. Wainwright & Co. is the exclusive placement agent. Reviva anticipates gross proceeds of approximately $3 million, before fees and expenses. These funds, alongside existing capital, will advance research and development, notably the Phase 3 RECOVER-2 trial, and support general corporate functions.
This offering is under a shelf registration statement effective February 2, 2022. Prospective investors can access the prospectus supplement and accompanying prospectus on the SEC's website or through H.C. Wainwright & Co.
Additionally, concurrent with this offering, Reviva has agreed to amend certain existing warrants issued in November 2023. The amendment reduces the exercise price to $1.455 per share, with a new expiration of five years following this offering's closure.
Reviva's pipeline includes brilaroxazine (RP5063) and RP1208, both new chemical entities developed in-house. Brilaroxazine, targeting schizophrenia and other neuropsychiatric conditions, has shown positive Phase 3 trial results and is being considered for additional indications such as bipolar disorder, major depressive disorder, and ADHD.
Promising nonclinical activity for inflammatory diseases like psoriasis, pulmonary arterial hypertension, and idiopathic pulmonary fibrosis has also been observed, earning it Orphan Drug Designation by the U.S. FDA for PAH and IPF treatment.
The information provided is based on a press release statement.
InvestingPro Insights
As Reviva Pharmaceuticals Holdings, Inc. (NASDAQ: RVPH) embarks on its latest registered direct offering, a look at the company's financial health and market performance provides key insights for prospective investors. According to InvestingPro, Reviva holds more cash than debt on its balance sheet, which can be a sign of financial stability. This is particularly relevant as the company seeks to raise funds to advance its research and development efforts.
Despite recent initiatives, the stock has experienced significant volatility. The InvestingPro Tips highlight that the stock is currently in oversold territory based on the Relative Strength Index (RSI), which might suggest potential for a rebound. Additionally, while the company has seen a significant return over the last week, with a 17.24% increase in price total return, it has fared poorly over the last month and year, with price total returns of -48.83% and -71.02% respectively.
InvestingPro Data further reveals a market capitalization of $42.72 million, underscoring the small-cap nature of RVPH. The company's P/E ratio stands at -0.95, reflecting that it is not currently profitable—a point corroborated by the fact that analysts do not expect the company to be profitable this year. The price of RVPH at the previous close was $1.53 USD, which is significantly below the InvestingPro Fair Value of $1.72 USD and well beneath the analyst target of $16.5 USD.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available, offering comprehensive insights into Reviva's performance and potential. To take advantage of these expert insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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