Baudax Bio Inc. (NASDAQ: BXRX) stock declined by 1.85% at the last close while the BXRX stock price continues to fall by 6.31% in the pre-market trading session. Baudax Bio is a pharmaceutical firm specializing in the development and commercialization of novel medications for use in acute care settings. In mid-2020, Baudax Bio introduced its first commercial product, ANJESO.
Important Development in BXRX
BXRX stated on May 31, 2021, that it has reached a formal deal with a group of institutional investors for the acquisition and sale of 14,028,520 shares of common stock. Also included are warrants to acquire up to 14,028,520 shares of common stock at a price of $0.85 per share in a registered direct offering, as well as an associated warrant.
The warrants, which have an exercise price of $0.90 per share, will become effective on the later of:
- The six-month anniversary of the offering’s closing date.
- The day on which Baudax Bio shareholders approved an increase in the number of Baudax Bio’s authorized common stock shares, which will expire on December 1, 2026. The offering is scheduled to close on or around June 1, 2021, given the fulfillment of normal closing conditions.
H.C. Wainwright & Co. is serving as the offering’s official placement agent.
The overall revenues from the transaction are projected to be around $11.9 million for Baudax Bio. Baudax Bio also anticipates to receive about $12.6 million in additional gross proceeds if the warrants are fully exercised for cash. However, there is no guarantee that the warrants will be exercised in full or in part before they expire. The gross proceeds from the transaction will be used by Baudax Bio for the commercialization of ANJESO, pipeline development operations, and other corporate purposes.