Biotech Values

[DewDiligence]

ACXP has_a shaky balance sheet—and significant dilution likely in a month or so. Net current assets @6/30/23 were a scant $6.2M:

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001736243/000155837023014645/acxp-20230630x10q.htm#ITEM1FINANCIALSTATEMENTS_87847

https://www.sec.gov/Archives/edgar/data/1736243/000110465923080771/tm2319782d3_424b3.htm#a_002

On May 16, 2023, we entered into a securities purchase agreement (the “Purchase Agreement”) with a single healthcare-focused U.S. institutional investor (the “Investor”) pursuant to which we issued and sold in a registered direct offering an aggregate of 601,851 shares of our common stock and pre-funded warrants to purchase an aggregate of 731,482 shares of our common stock (the “Registered Direct Offering”). The pre-funded warrants sold to the Investor have an exercise price of $0.0001, were immediately exercisable and may be exercised at any time until fully exercised.

In a concurrent private placement…we issued to the Investor (i) series C warrants exercisable for an aggregate of 1,333,333 shares of common stock at an exercise price of $3.26 per share and (ii) series D warrants exercisable for an aggregate of 1,333,333 shares of common stock at an exercise price of $3.26 per share… Each series C warrant will be exercisable commencing on November 18, 2023 and will expire two years from the initial exercise date. Each series D warrant will be exercisable commencing on November 18, 2023 and will expire six years from the initial exercise date.

So, ACXP apparently expects to fund operations, at least in part, from warrant exercises by Armistice Capital (ACXP’s largest shareholder) starting as soon as 11/18/23. If all of the Series C and Series D warrants are exercised, ACXP will get proceeds of $8.7M but will increase the shares outstanding by 20%. (Note: The Series C and Series D warrants are in addition to the 731K pre-funded warrants exercisable at $0.0001.)