Intelligent Bio Solutions enters agreements to raise $3.8M in gross proceeds

Intelligent Bio Solutions (INBS) announced an agreement between the Company and several current warrant holders to exercise certain existing warrants to purchase up to 2,023,228 shares of common stock at a reduced exercise price of $1.90 per share. Ladenburg Thalmann & Co. acted as the exclusive placement agent for this transaction. The resale of the shares of common stock issuable upon exercise of the Existing Warrants are registered pursuant to registration statements that were filed and declared effective by the Securities and Exchange Commission. The gross proceeds to the Company from the exercise of the Existing Warrants are expected to be approximately $3.8M prior to deducting placement agent fees and estimated offering expenses. In consideration for the immediate exercise of the Existing Warrants for cash by the current warrant holders, the Company agreed to reduce the exercise price of the Series H-2 Common Stock Purchase Warrants, which warrants were issued on March 12, 2024 to the reduced exercise price, and the exercising holders will receive new warrants to purchase shares of common stock in a private placement. The Inducement Warrants will be exercisable upon the Company’s receipt of stockholder approval of the transaction into an aggregate of up to 4,046,456 shares of common stock, at an exercise price of $1.90 per share, and a term of exercise equal to five and one-half years from issuance. In lieu of a complete exercise of the Existing Warrants, several current warrant holders agreed to prepay $1.89 of the reduced exercise price and will receive an amended warrant for such prepaid portion of the warrant with an exercise price of $0.01 per share. The transaction is expected to close on or about July 28, 2025, subject to satisfaction of customary closing conditions. The Company intends to use the net proceeds from the offering to fund completion of its 510k filing with the U.S. FDA for its Fingerprint Drug Screening System, for working capital and general corporate purposes.