Aspire Biopharma closes final tranche of $21M private placement

Aspire Biopharma (ASBP) closed the second and final tranche of the private placement announced on February 11 for the purchase and sale of 26,250 shares of Series A Convertible Preferred Stock. Pursuant to the closing of the second and final tranche of the Offering, the Company issued an aggregate of 12,500 Preferred Shares for gross proceeds of $10M. With the completion of this tranche of the Offering, total aggregate gross proceeds to the Company were $21M, before deducting placement agent fees and other offering expenses. Based on the total proceeds, the Company’s stockholders’ equity now exceeds the $2.5M minimum required to maintain its listing on the Nasdaq Capital Market. The Company intends to use the net proceeds from the transaction to support working capital, to fund a portion of the cash component of the proposed DCS acquisition, and other general corporate purposes. The Company entered into a commitment letter with a national financial institution providing for a senior secured credit facility of Aspire in an aggregate principal amount of up $22,500,000. Aspire intends to use the proceeds of the Aspire Credit Facility, if consummated, to finance the acquisition of 100% of DCS. The Company does not anticipate procuring any new equity raise to consummate the purchase. The Aspire Credit Facility is expected to consist of a senior secured five-year term loan, at an interest rate equal to 325 basis points above the one-month term Secured Overnight Financing Rate. The final terms of the Aspire Credit Facility, including the senior secured term loan, will be subject to execution of definitive credit documentation and the satisfaction of customary closing conditions.