Fortress Biotech to sell 3.9M shares at $1.65 in registered direct offering

Fortress Biotech entered into securities purchase agreements with healthcare focused institutional investors for the issuance and sale of 3,939,394 shares of its common stock in a registered direct offering at a purchase price of $1.65 per share. In a concurrent private placement, the Company also agreed to issue to the same investors warrants to purchase up to 3,939,394 shares of common stock. The private placement warrants have an exercise price of $1.84 per share, will be exercisable commencing six months from the date of issuance, and will expire five and one-half years following the date of issuance. In a separate concurrent private placement, the Chairman, CEO, and President of the Company purchased 763,359 shares of common stock at a price of $1.84 per share, which represents the consolidated closing bid price on September 19, 2024, and warrants to purchase up to 763,359 shares of common stock. These warrants were purchased at a price of $0.125 per warrant, have an exercise price of $1.84 per share, will be exercisable commencing six months from the date of issuance, and will expire five and one-half years following the date of issuance. The gross proceeds from the offerings, before deducting the placement agent’s fees and other offering expenses, are expected to be approximately $8 million. Fortress expects to use the net proceeds from the offerings for its operations, including, but not limited to, general corporate purposes, which may include research and development expenditures, clinical trial expenditures, license or acquisition of new products, and working capital. A.G.P./Alliance Global Partners is acting as sole placement agent for the offerings. The offerings are expected to close on or about September 23, 2024, subject to the satisfaction of customary closing conditions.