Full Press Release Details
Wave BioPharma Announces Exercise of Warrants and Issuance of New Warrants in a Private Placement for $4.0 Million Gross Proceeds Priced
Fla., September 14, 2023 (GLOBE NEWSWIRE) -- First Wave BioPharma, Inc. ("First Wave BioPharma" or the "Company")
(NASDAQ: FWBI), a clinical-stage biopharmaceutical company specializing in the development of targeted, non-systemic therapies for gastrointestinal
(GI) diseases, today announced it has entered into agreements with certain holders of its existing warrants exercisable for 5,882,036
shares of its common stock, in the aggregate, to exercise their warrants at a reduced exercise price of $0.43 per share, in exchange
for new warrants as described below. The aggregate gross proceeds from the exercise of the existing warrants is expected to total approximately
$4.0 million, before deducting financial advisory fees. The reduction in the exercise price of the existing warrants and the issuance
of the new warrants was structured as an at-market transaction under Nasdaq rules.
Capital Partners is acting as the Company's financial advisor for this transaction.
shares of common stock issuable upon exercise of the warrants are registered pursuant to a registration statement on Form S-3 (File No.
333-270723) which was declared by the Securities and Exchange Commission (SEC) on March 27, 2023 and a registration statement on Form
S-1 (File No. 333-272404) which was declared effective by the SEC on July 17, 2023.
consideration for the immediate exercise of the warrants for cash and the payment of $0.125 per share underlying the new warrants, the
exercising holders will receive new warrants to purchase shares of common stock in a private placement pursuant to Section 4(a)(2) of
the Securities Act of 1933, as amended (the "1933 Act"). The new warrants will be exercisable into an aggregate of up to
11,764,072 shares of common stock, at an exercise price of $0.43 per share and have a term of exercise equal to five years. The securities
offered in the private placement have not been registered under the Securities Act of 1933, as amended, or applicable under state securities
laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement
or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. As part
of the transaction, the Company has agreed to file a resale registration statement on Form S-3 with the Securities and Exchange Commission
within 10 days of the closing to register the resale of the shares of common stock underlying the new warrants issued in the private
press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale
of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification
under the securities laws of any such jurisdiction.
About First Wave BioPharma, Inc.
First Wave BioPharma is a clinical-stage biopharmaceutical
company specializing in the development of targeted, non-systemic therapies for gastrointestinal (GI) diseases. The Company is currently
advancing a therapeutic development pipeline with multiple Phase 2 clinical stage programs built around three proprietary technologies
- Capeserod, a selective 5-HT4 receptor partial agonist which First Wave will pursue for gastrointestinal (GI) indications; the
biologic adrulipase, a recombinant lipase enzyme designed to enable the digestion of fats and other nutrients in cystic fibrosis and
chronic pancreatitis patients with exocrine pancreatic insufficiency; and niclosamide, an oral small molecule with anti-inflammatory
properties for patients with inflammatory bowel diseases such as ulcerative colitis and Crohn's disease. First Wave BioPharma is
headquartered in Boca Raton, Florida. For more information visit www.firstwavebio.com.
press release may contain certain statements relating to future results which are forward-looking statements. It is possible that the
Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition
indicated in these forward-looking statements, depending on factors including whether results obtained in preclinical and nonclinical
studies and clinical trials will be indicative of results obtained in future clinical trials; whether preliminary or interim results
from a clinical trial will be indicative of the final results of the trial; whether the Company will be able to maintain compliance with
Nasdaq's continued listing criteria and the effect of a delisting from Nasdaq on the market for the Company's securities;
the size of the potential markets for the Company's drug candidates and its ability to service those markets; the effects of the
First Wave Bio, Inc. acquisition, the related settlement and their effect on the Company's business, operating results and financial
prospects; and the Company's current and future capital requirements and its ability to raise additional funds to satisfy its capital
needs. Additional information concerning the Company and its business, including a discussion of factors that could materially affect
the Company's financial results are contained in the Company's Annual Report on Form 10-K for the year ended December 31,
2022 under the heading "Risk Factors," as well as the Company's subsequent filings with the Securities and Exchange
Commission. All forward-looking statements included in this press release are made only as of the date of this press release, and we
do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that
subsequently occur or of which we hereafter become aware.
For more information:
First Wave BioPharma, Inc.
777 Yamato Road, Suite 502
Boca Raton, FL 33431
Phone: (561) 589-7020
Tiberend Strategic Advisors, Inc.