PRINCETON - Agile Therapeutics, Inc. (NASDAQ:AGRX), a women's healthcare company, announced today a definitive agreement to adjust the exercise price of certain outstanding warrants. These warrants, originally issued in July 2022 and May 2023 with an exercise price of $3.69 per share, will now have a reduced exercise price of $1.25 per share.
The company expects to generate approximately $4.8 million in gross proceeds from the exercise of the warrants, before accounting for placement agent fees and estimated offering expenses. H.C. Wainwright & Co. is serving as the exclusive placement agent for this transaction.
In exchange for the immediate cash exercise of the warrants, Agile Therapeutics will issue new unregistered warrants to purchase up to 7,785,144 shares of common stock. These new warrants will have an exercise price of $1.00 per share and will become exercisable upon issuance. Of these, 3,992,572 warrants will have a five-year term from the date of issuance, and the remaining 3,792,572 will have an eighteen-month term.
The completion of the offering is anticipated around February 26, 2024, subject to customary closing conditions. Net proceeds from the offering are intended for working capital and general corporate purposes.
The new warrants, as well as the shares of common stock issuable upon their exercise, have not been registered under the Securities Act of 1933 and were offered in a private placement under an exemption from registration requirements. Agile Therapeutics has committed to filing a registration statement with the SEC for the resale of the shares of common stock that will be issued upon exercising the new warrants.
Agile Therapeutics, known for its non-daily prescription contraceptive patch Twirla, based on its Skinfusion technology, focuses on addressing the unmet healthcare needs of women.
This announcement is based on a press release statement and should not be considered an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities has not been registered under the Securities Act of 1933 and is subject to SEC registration or an exemption from such requirements.
InvestingPro Insights
Agile Therapeutics (NASDAQ:AGRX) has recently made a strategic move to adjust the exercise price of certain outstanding warrants, which is anticipated to provide the company with additional working capital. This decision comes at a critical time, as InvestingPro data reveals some key financial metrics that could be of interest to investors:
- The company's Market Cap stands at a modest $3.14M USD, reflecting the market's current valuation of the company.
- With a Revenue Growth of 137.74% in the last twelve months as of Q1 2023, Agile Therapeutics has shown a significant increase in sales, indicating potential in its commercial activities.
- The stock is currently trading near its 52-week low, with the Price, Previous Close at $0.99 USD, which could signal a buying opportunity for investors looking for undervalued stocks.
InvestingPro Tips suggest that while analysts are optimistic about sales growth in the current year, they do not anticipate the company to be profitable within this period. Additionally, the stock's recent performance has been quite volatile, with significant price drops over various time frames, including a -92.22% 1 Year Price Total Return as of the latest data.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, which could provide further insights into Agile Therapeutics' financial health and stock performance. With the use of coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a comprehensive suite of tools and data on InvestingPro. There are a total of 19 additional InvestingPro Tips listed for AGRX, which could be invaluable for making informed investment decisions.
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