Lipella Pharmaceuticals Inc. Announces Second Closing of Offering 2024

Lipella Pharmaceuticals Inc. (NASDAQ: LIPO) recently completed the second closing of its offering on December 31, 2024, as detailed in an 8-K filing with the United States Securities and Exchange Commission (SEC). This closing followed an initial closing where the company had sold 22,295 shares of Series B non-voting convertible preferred stock to investors for $100 per share.

During the second closing of the Offering, Lipella Pharmaceuticals entered into subscription agreements with additional investors, resulting in the sale of 3,680 shares of Series B Preferred Stock and gross proceeds of $368,000. These shares are convertible into 117,948 shares of common stock at a conversion price of $3.12 per share. The company received net proceeds of $305,440 from this closing, planned for use in working capital and general corporate purposes.

Additionally, in connection with the second closing, Lipella Pharmaceuticals compensated Spartan Capital Securities, LLC with $62,560 in placement agent and consulting fees. Spartan received 42,933 shares of Series C voting convertible preferred stock and a placement agent warrant to purchase up to 11,795 shares of common stock. The company granted Dr. Jonathan Kaufman, CEO of Lipella Pharmaceuticals, with voting power over the shares of Series C Preferred Stock issued to Spartan.

The securities issued during the second closing were offered and sold under an exemption from registration requirements provided by Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D. The offering was made to accredited investors, with no general solicitation involved.

The 8-K filing contained forward-looking statements, highlighting the company’s intentions and strategies regarding the use of proceeds from the Offering, regulatory filings with the SEC, and future fundraising activities. Lipella Pharmaceuticals reminded investors that actual results may vary due to uncertainties and risks inherent in the industry.

The Exhibits attached to the filing included the Irrevocable Proxy and Power of Attorney, the forms of Subscription Agreement, Registration Rights Agreement, and Placement Agent Warrant, and a Cover Page Interactive Data File for reference.

Lipella Pharmaceuticals Inc. certified the accuracy of this report through authorized signatory Jonathan Kaufman, Chief Executive Officer, on January 6, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Lipella Pharmaceuticals’s 8K filing here.

About Lipella Pharmaceuticals

Lipella Pharmaceuticals Inc, a biotechnology company, focuses on developing drugs by reformulating the active agents in existing generic drugs and optimizing these reformulations for various applications. The company develops LP-10, a formulation of tacrolimus that has completed Phase 2a clinical trial for patients with radiation-induced hemorrhagic cystitis; LP-310, a formulation of tacrolimus for the treatment of oral lichen planus; and LP-410, an oral liposomal formulation of tacrolimus for the treatment of oral graft-versus-host disease (GVHD).