WOBURN, MA - Biofrontera Inc. (NASDAQ:BFRI), a biopharmaceutical company focusing on dermatological treatments, has secured $16 million in financing, with $8 million received upon closing and an additional $8 million contingent on achieving specific milestones. The funding was obtained through a securities purchase agreement with healthcare-focused institutional investors, including Rosalind Advisors, on February 22, 2024.
The investment consists of Series B-1 Convertible Preferred Stock and associated warrants to purchase Series B-3 Convertible Preferred Stock. The Series B-1 shares were priced at $1,000 each, with the potential conversion into approximately 9.3 million common shares at $0.7074 per share. The Series B-3 warrants, exercisable upon meeting certain operational and commercial milestones expected in Q2 of 2024 or other conditions, are convertible into around 11.3 million common shares at the same price, with the warrant consideration set at $0.125 per share.
Biofrontera anticipates the additional funds from the exercise of B-3 warrants after fulfilling the specified criteria. The proceeds, before deducting placement agent fees and other estimated offering expenses, will support the company's general operations and expedite development and approval of new indications for its lead product, Ameluz®, used in conjunction with the BF-RhodoLED lamp series for mild to moderate actinic keratosis on the face and scalp.
Roth Capital Partners served as the exclusive agent for the private placement. The securities offered in the placement have not been registered under the Securities Act of 1933 and are therefore subject to restrictions on resale, except under an effective registration statement or an applicable exemption. Biofrontera has committed to filing a resale registration statement with the U.S. Securities and Exchange Commission for the common stock issued or issuable in connection with the private placement.
The announcement is based on a press release statement and is intended to provide factual information regarding Biofrontera's recent financing and its implications for the company's future operations. Biofrontera specializes in photodynamic therapy and topical antibiotics for treating pre-cancerous skin lesions and bacterial skin infections. Actinic keratosis, the primary condition treated by Biofrontera's products, affected approximately 58 million people in the US in 2020.
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