CHESTERBROOK, PA — Pharmaceutical firm Trevena, Inc. (Nasdaq: TRVN) has recently completed two significant financial transactions, raising approximately $4 million in gross proceeds. The Chesterbrook, Pennsylvania-based company announced its successful closure of a private placement and an induced warrant exercise on December 28, 2023.
In the private placement, Trevena sold 2,779,906 shares of common stock, or pre-funded warrants equivalent to those shares, along with warrants for the purchase of an additional 2,779,906 shares. These were sold at a purchase price of $0.70 per share, earning the company gross proceeds of roughly $1.946 million.
Simultaneously, the company also completed an induced warrant exercise, which involved the cash exercise of existing warrants to buy up to 2,934,380 shares of common stock that were issued in July and November 2022. The warrants were exercised at a reduced price of $0.70 per share, in exchange for unregistered warrants to purchase up to 5,868,760 shares of common stock.
The newly issued warrants, from both the private placement and the induced warrant exercise, have an exercise price of $0.70 per share. They will become exercisable upon the approval of stockholders and will expire five years thereafter. H.C. Wainwright & Co. served as the exclusive placement agent for these offerings.
These transactions, collectively referred to as the “offerings,” brought in aggregate gross proceeds of approximately $4 million. After accounting for placement agent fees and other expenses related to the offering, the net proceeds will be used for general corporate expenses and working capital purposes.
As part of its broader financial strategy, Trevena anticipates that these gross proceeds, in connection with other permitted financing as defined in its royalty-based loan agreement with R-Bridge Healthcare Investment Advisory, Ltd., may satisfy the conditions for the company to receive a $10.0 million tranche under the loan agreement. However, the timeline for receipt of this tranche remains uncertain.
These recent financial moves aim to bolster Trevena’s capital resources and provide additional runway for its ongoing operations. As the company navigates the competitive pharmaceutical landscape, these offerings offer a way to secure vital funding while minimizing dilutive impacts on existing shareholders.
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