Processa Pharmaceuticals Announces Successful Completion of $5 Million Public Offering

Hanover, Maryland – January 30, 2025 – Processa Pharmaceuticals, Inc. (NASDAQ: PCSA) disclosed today the closing of its recent public offering, generating approximately $5.0 million in gross proceeds for the company. The healthcare-focused institutional investor participated in the offering, which included the sale and issuance of 1,030,972 shares of common stock, Series A and Series B warrants, and Pre-Funded Warrants.

The Series A warrants, with an exercise price of $0.65 per share, will be exercisable starting from the effective date of stockholder approval for a period of five years. On the other hand, the Series B warrants, also with an exercise price of $0.65 per share, will be exercisable for eighteen months following the effective date of stockholder approval. The shares were priced at $0.615 per share for institutional investors and $0.7975 per share for the Chief Executive Officer and certain board members of the company.

A.G.P./Alliance Global Partners acted as the exclusive placement agent for the offering and will receive a cash fee equivalent to 6.5% of the gross proceeds raised (except for funds from certain parties) and other allowances as per the agreement. The closing date of the offering was January 29, 2025, marking the completion of the transaction.

The offering was executed in compliance with the company’s Registration Statement on Form S-1, filed with the Securities and Exchange Commission (SEC) and declared effective on January 27, 2025. The company intends to utilize the net proceeds for general corporate purposes. Furthermore, the Securities Purchase Agreement restricts the issuance of any additional Common Stock or equivalents for sixty days and prohibits the direct or indirect sale of Common Stock for six months post the offering closing date, with exceptions outlined in the agreement.

The Company released two press statements regarding the offering: one on January 27, 2025, announcing the pricing of the offering, and another on January 30, 2025, confirming the closure of the offering. The complete details of the offering are available on the Company’s recent filings with the SEC.

Investors and the public interested in further details about the offering, including the Securities Purchase Agreement and related agreements, are encouraged to refer to the Company’s filings with the Commission for comprehensive information.

For more information about Processa Pharmaceuticals and its Next Generation Chemotherapy drugs, interested parties can visit the company’s website at www.processapharma.com.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Processa Pharmaceuticals’s 8K filing here.

About Processa Pharmaceuticals

Processa Pharmaceuticals, Inc, a clinical stage biopharmaceutical company, develops chemotherapy drugs to improve the safety and efficacy of cancer treatment. Its drugs are modifications of existing FDA-approved oncology drugs resulting in an alteration of the metabolism and/or distribution of drugs while maintaining the existing mechanisms of killing the cancer cells.