TFF Pharmaceuticals announces $4.8 million stock offering



FORT WORTH, Texas – TFF Pharmaceuticals, Inc. (Nasdaq: TFFP), a clinical-stage biopharmaceutical company, has launched a public offering of stock and warrants expected to raise gross proceeds of approximately $4.8 million. The offering consists of 1,665,219 shares of common stock or its equivalent and warrants to purchase an equal number of shares. The combined public offering price was set at $2.875 per share, with warrants attached.

The warrants are exercisable immediately upon issuance at a price of $2.75 per share and will expire five years from the date of issuance. The expected closing date of the offering is May 1, 2024, subject to the satisfaction of customary closing conditions. HC Wainwright & Co. is acting as the exclusive placing agent for the offering.

TFF Pharmaceuticals intends to use the net proceeds for working capital and general corporate purposes. The offering is being made pursuant to a registration statement on Form S-1 declared effective by the U.S. Securities and Exchange Commission (SEC) on April 29, 2024.

The company specializes in developing drug dry powder formulations through its patented Thin Film Freezing (TFF) technology, which is suitable for a variety of drugs, including vaccines and biologics. The technology is designed to improve the efficacy, safety and stability of drugs.

Investment Professional Insights

In light of TFF Pharmaceuticals' recent public offering, investors may find the following insights from InvestingPro valuable in making informed decisions. The company's market capitalization is just $6.93 million, reflecting the size of the market and current valuation. Although revenue growth was as high as 48.02% in the trailing 12 months to the fourth quarter of 2023, it is worth noting that TFF Pharmaceuticals' gross margin during the same period was negative at -1531.39%, indicating that costs far exceeded revenue.

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InvestingPro Tips suggests that TFFP stock is currently in oversold territory, which may be of interest to value investors looking for a rebound opportunity. However, it's important to consider that not only is the company burning through cash at a rapid rate, but the price has also fallen significantly, with a one-month total return of -55.13% as of the latest data point. This could indicate bearish sentiment among investors or a reaction to broader market conditions.

For those considering investing in TFF Pharmaceuticals, there are other InvestingPro Tips that can help you learn more about the company's financial health and market performance. Investors can get a more complete picture of what to expect from TFFP stock with the 14 additional tips listed on InvestingPro.To access these tips, visit https://www.investing.com/pro/TFFP and remember to use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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