Salarius Pharmaceuticals Raises $1M in Direct Offering

Ticker: DCOY · Form: 8-K · Filed: Aug 15, 2024 · CIK: 1615219

Sentiment: neutral

Topics: capital-raise, direct-offering, financing

TL;DR

Salarius just raised $1M via a direct stock offering at $0.65/share, closing around Aug 15.

AI Summary

Salarius Pharmaceuticals, Inc. announced on August 13, 2024, that it entered into a securities purchase agreement with an institutional investor for a registered direct offering. The company will issue approximately 1.5 million shares of its common stock at a purchase price of $0.65 per share, expecting gross proceeds of approximately $1 million before deducting offering expenses. This offering is expected to close on or about August 15, 2024.

Why It Matters

This capital infusion provides Salarius Pharmaceuticals with funds to continue its operations and potentially advance its drug development pipeline.

Risk Assessment

Risk Level: medium — The company is raising capital through a direct offering, which can dilute existing shareholders and may indicate a need for immediate funding.

Key Numbers

Key Players & Entities

FAQ

What is the purpose of the registered direct offering?

The filing does not explicitly state the purpose, but it is a common method for companies to raise capital for operations, research and development, or other corporate initiatives.

Who is the institutional investor purchasing the shares?

The filing refers to 'an institutional investor' but does not disclose the specific name of the entity.

What are the expected expenses for the offering?

The filing states that gross proceeds are before deducting offering expenses, but the specific amount of these expenses is not detailed.

What is the total number of shares outstanding after this offering?

The filing does not provide the current number of outstanding shares, so the total after the offering cannot be calculated from this document alone.

Are there any lock-up agreements for the shares sold in this offering?

The filing does not mention any specific lock-up agreements for the shares purchased by the institutional investor.

Filing Stats: 558 words · 2 min read · ~2 pages · Grade level 11.1 · Accepted 2024-08-15 16:04:12

Key Financial Figures

Filing Documents

01. Other Events

Item 8.01. Other Events. On August 9, 2024, Salarius Pharmaceuticals, Inc. (the "Company") reported in its Quarterly Report on Form 10-Q for the three months ended June 30, 2024 (the "Form 10-Q") that it had $2,375,353 in stockholders' equity as of June 30, 2024. To maintain the Company's listing on The Nasdaq Capital Market ("Nasdaq"), the Company is required to maintain, among other things, a minimum stockholders' equity of at least $2.5 million pursuant to Nasdaq Listing Rule 5550(b)(1) (the "Stockholders' Equity Requirement"). As disclosed in the Form 10-Q, subsequent to June 30, 2024, the Company sold 564,730 shares of its common stock for gross proceeds of approximately $1.5 million pursuant to that certain At the Market Offering Agreement, dated as of February 5, 2021, with Ladenburg Thalmann & Co. Inc. (the "Financing Transaction"). As of the date of this Current Report on Form 8-K, the Company believes it complies with the Stockholders' Equity Requirement after giving effect to the Financing Transaction. Notwithstanding the foregoing, Nasdaq will continue to monitor the Company's ongoing compliance with the Stockholders' Equity Requirement and, if at the time of the Company's next Quarterly Report on Form 10-Q the Company does not evidence compliance, the Company's common stock may be subject to delisting.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SALARIUS PHARMACEUTICALS, INC. Date: August 15, 2024 By: /s/ Mark J. Rosenblum Mark J. Rosenblum Chief Financial Officer

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