GRI Bio, Inc. (NASDAQ: GRI) shares saw a notable rebound after hours, rising 11.39% to $2.25 after plunging 36% during regular market hours on Monday. An announcement of an equity offering and the findings of a recent clinical trial combined to cause this price swing.
Public Offering Details
In addition to Series E-1, E-2, and E-3 warrants, GRI Bio said that it had priced a public offering of 1,388,888 shares of its common stock. At $3.60 per share, the Series E-1 warrants are immediately exercisable, and the related Series Warrants have an exercise price of $3.20 per share.
The expiration periods of these warrants will vary; Series E-1 will expire five years after issuance, Series E-2 will expire in eighteen months, and Series E-3 will expire in nine months. Under normal circumstances, the offering is expected to close by April 2, 2025. Before fees are subtracted, GRI Bio anticipates raising around $5.0 million in gross funds, with the possibility of an extra $13.3 million if the warrants are fully exercised.
Use of Proceeds
The proceeds from the offering are intended to support the development of GRI Bio’s product candidates, specifically for working capital and general corporate purposes. The company is concentrating on developing its pipeline of Natural Killer T (NKT) cell modulators, which are intended to treat autoimmune, fibrotic, and inflammatory conditions.
Updates on Clinical Trials
GRI Bio also provided information on their Phase 2a research, which is assessing GRI-0621, a small molecule intended to treat Idiopathic Pulmonary Fibrosis (IPF). The trial’s interim safety results demonstrated GRI-0621’s promise as a secure and efficient therapy for IPF, a condition with substantial unmet medical needs.
GRI-0621 has been shown in early clinical studies to enhance liver function and fibrosis in a variety of disease types. GRI Bio aims to report topline findings for the research in the third quarter of 2025, further advancing its potential treatment candidate.