NeuroBo Pharmaceuticals Closes $70 Million Private Placement and Direct Offering

NeuroBo Pharmaceuticals, Inc., a clinical-stage biotechnology firm dedicated to addressing cardiometabolic diseases, has recently finalized a significant private placement deal. The company has sold 4,325,701 shares of its common stock or pre-funded warrants at a purchase price of $3.93 per share or warrant. Simultaneously, in a registered direct offering, NeuroBo sold an additional 763,359 shares of common stock at the same price per share.

Additionally, NeuroBo issued unregistered Series A and Series B warrants to purchase up to 5,089,060 and 7,633,591 shares of common stock, respectively. These warrants, collectively termed "Series Warrants," are priced at $3.93 per share. The Series A warrants will expire either twelve months from stockholder approval or within 60 days following the announcement of positive Phase 1 multiple ascending dose (MAD) data for DA-1726. The Series B warrants will expire either five years from stockholder approval or within six months of positive Phase 1 Part 3 data for DA-1726.

H.C. Wainwright & Co. acted as the sole placement agent for these offerings. The combined gross proceeds from these transactions amounted to approximately $20 million, excluding the placement agent's fees and other related expenses. NeuroBo plans to use these funds for general corporate purposes and working capital, primarily to advance the clinical development of DA-1726 for treating obesity. Should the Series Warrants be fully exercised, NeuroBo could potentially raise an additional $50 million to support the Phase 1 Part 3 clinical trial of DA-1726.

The registered direct offering shares were sold under a "shelf" registration statement previously filed with the Securities and Exchange Commission (SEC) and declared effective. The private placement securities and the Series Warrants were sold in a private transaction, not registered under the Securities Act of 1933.

NeuroBo Pharmaceuticals is committed to transforming the landscape of cardiometabolic diseases. It is currently developing DA-1726, a novel oxyntomodulin analogue serving as a dual agonist for glucagon-like peptide-1 receptor (GLP1R) and glucagon receptor (GCGR). This compound aims to reduce food intake and increase energy expenditure, potentially offering superior weight loss benefits compared to selective GLP1R agonists. Another lead candidate, DA-1241, is a G-protein-coupled receptor 119 (GPR119) agonist targeting Metabolic Dysfunction-Associated Steatohepatitis (MASH). Pre-clinical studies have shown that DA-1241 positively impacts liver inflammation, lipid metabolism, weight loss, and glucose metabolism.

This strategic financing is expected to provide NeuroBo with the necessary resources to carry forward its clinical trials and advance its promising therapies aimed at addressing significant unmet medical needs in cardiometabolic diseases.