Processa Pharma Reports Material Definitive Agreement; Details Undisclosed

TL;DR

**Processa Pharma signed a material agreement, but the 8-K gives zero details, leaving investors in the dark.**

AI Summary

Processa Pharmaceuticals, Inc. filed an 8-K on January 30, 2024, reporting an "Entry into a Material Definitive Agreement" on January 26, 2024. While the filing indicates a significant agreement, it does not disclose the specific details, parties, or financial terms of this agreement. This matters to investors because the lack of specific information about a material agreement creates uncertainty, making it difficult to assess the potential impact on the company's future operations, financial health, or stock value.

Why It Matters

This filing signals a potentially significant business development for Processa Pharmaceuticals, Inc., but the absence of details prevents investors from understanding its financial implications or strategic importance.

Risk Assessment

Risk Level: medium — The filing indicates a material agreement without providing any specifics, which introduces uncertainty and potential risk for investors as they cannot evaluate its impact.

Analyst Insight

Smart investors should monitor Processa Pharmaceuticals, Inc.'s future filings and press releases closely for specific details regarding the material definitive agreement to assess its potential impact on the company's valuation and strategic direction.

Key Players & Entities

• Processa Pharmaceuticals, Inc. (company) — the registrant filing the 8-K
• Nasdaq Capital Market (company) — the exchange where Processa's common stock is registered
• January 26, 2024 (date) — date of the earliest event reported (entry into material definitive agreement)
• January 30, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• Processa Pharmaceuticals, Inc. will release further details about the material definitive agreement in a subsequent filing or press release. (Processa Pharmaceuticals, Inc.) — high confidence, target: Q1 2024

FAQ

Key Financial Figures

• $0.0001 — f the Company's common stock, par value $0.0001 per share (the "common stock"), (ii) wa
• $4 — mmon Warrants have an exercise price of $4.50, are immediately exercisable and wil
• $0 — nded Warrants have an exercise price of $0.0001, are immediately exercisable and w
• $4.50 — at a combined public offering price of $4.50 per Share and accompanying Common Warra
• $4.4999 — are and accompanying Common Warrant and $4.4999 per Pre-Funded Warrant and accompanying
• $112,500 — -pocket expenses in the amount of up to $112,500, and for its clearing expenses in the a
• $15,950 — its clearing expenses in the amount of $15,950. In addition, the Company has agreed to
• $5 — unded Warrants) at an exercise price of $5.625, which represents 125% of the publi
• $7.0 m — ny from the Offering were approximately $7.0 million, before deducting the Placement A

Filing Documents

• form8-k.htm (8-K) — 47KB
• ex4-1.htm (EX-4.1) — 125KB
• ex4-2.htm (EX-4.2) — 121KB
• ex4-3.htm (EX-4.3) — 124KB
• ex10-1.htm (EX-10.1) — 248KB
• ex99-1.htm (EX-99.1) — 13KB
• ex99-1_001.jpg (GRAPHIC) — 12KB
• 0001493152-24-004251.txt ( ) — 1005KB
• pcsa-20240126.xsd (EX-101.SCH) — 3KB
• pcsa-20240126_lab.xml (EX-101.LAB) — 33KB
• pcsa-20240126_pre.xml (EX-101.PRE) — 22KB
• form8-k_htm.xml (XML) — 4KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): January 26, 2024 Commission file number 001-39531 PROCESSA PHARMACEUTICALS, INC. (Exact name of Registrant as Specified in its Charter) Delaware 45-1539785 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) 7380 Coca Cola Drive , Suite 106 , Hanover , Maryland 21076 (Address of Principal Executive Offices, Including Zip Code) (443) 776-3133 (Registrant's Telephone Number, Including Area Code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common stock: Par value $.0001 PCSA Nasdaq Capital Market Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 1.01 Entry into a Material Definitive Agreement. On January 26, 2024, Processa Pharmaceuticals, Inc. (the "Company") entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain institutional investors, pursuant to which the Company agreed to sell and issue, in a registered public offering (the "Offering"), (i) 476,000 shares (the "Shares") of the Company's common stock, par value $0.0001 per share (the "common stock"), (ii) warrants to purchase 1,555,555 shares of common stock (the "Common Warrants") and (iii) pre-funded warrants to purchase up to 1,079,555 shares of common stock in lieu of shares of common stock (the "Pre-Funded Warrants"). The Common Warrants have an exercise price of $4.50, are immediately exercisable and will remain exercisable until the date that is five years after their original issuance. The Pre-Funded Warrants have an exercise price of $0.0001, are immediately exercisable and will remain exercisable until exercised in full. The Shares were offered at a combined public offering price of $4.50 per Share and accompanying Common Warrant and $4.4999 per Pre-Funded Warrant and accompanying Common Warrant. H.C. Wainwright & Co., LLC (the "Placement Agent") acted as the Company's exclusive placement agent in the Offering. The Company has agreed to pay the Placement Agent a cash fee equal to seven percent (7.0%) of the aggregate gross proceeds raised in the Offering. The Company has also agreed to reimburse the Placement Agent for certain of its Offering-related expenses, including reimbursement for non-accountable expenses, legal fees and other out-of-pocket expenses in the amount of up to $112,500, and for its clearing expenses in the amount of $15,950. In addition, the Company has agreed to issue the Placement Agent or its designees warrants to purchase up to 62,222 shares of common stock (equal to 4.0% of the aggregate number of Shares sold in the Offering, including the shares of common stock issuable upon the exercise of the Pre-Funded Warrants) at an exercise price of $5.625, which represents 125% of the public offering price per share and accompanying Common Warrant (the "Placement Agent Warrants"). The Placement Agent Warrants will be exercisable upon issuance and will expire three years from the closing of the Offering. The Offering closed on January 30, 2024. The gross proceeds to the Company from the Offering were approximately $7.0 million, before deducting the Placement Agent fees and other Offering expenses payable by the Company. The Company anticipates using the net proceeds from the Offering for general corporate purposes. The Securities Purchase Agreement provides that, subject to certain exceptions, until 90 days after the closing of the Offering, neither the Company nor any of its subsidiaries will issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of common stock or common stock equivalents. The securities were offered an

View Full Filing

View this 8-K filing on SEC EDGAR