Azitra Inc., designated as AZTR, announced the pricing of an underwritten public offering of approximately 16.67 million shares, at a rate of $0.30 per share. This move is estimated to bring in gross proceeds of around $5 million, prior to the subtraction of underwriting discounts and offering expenses.
Following the regular trading on Tuesday, AZTR closed at a reduced price of $0.87, down by $0.28 or 24.33%. The share price experienced a further drop of $0.10 or 11.61% in after-hours trading.
Moreover, Azitra is offering the underwriters a 45-day option, enabling them to buy up to an additional 2.50 million common stock shares to compensate for over-allotments. This will be at the public offering price after subtracting the underwriting discount.
Azitra intends to utilize the net proceeds from these transactions for several objectives. These include conducting clinical trials, developing products, research and development, and clinical manufacturing. Additionally, some funds are slated for working capital needs and other various business purposes.
The expected date for closing the offering is February 16, 2024.
