Processa Pharmaceuticals Announces $7M Public Offering at $0.25 Per Share.

Processa Pharmaceuticals has announced the pricing of a $7 million public offering, selling 28 million shares of common stock at $0.25 per share, along with common warrants to purchase up to 28 million shares. The offering is expected to close on June 18, 2025, subject to customary closing conditions.

Hanover, Md., June 17, 2025 – Processa Pharmaceuticals, Inc. (Nasdaq: PCSA), a clinical-stage pharmaceutical company developing Next Generation Cancer (NGC) therapies, has announced the pricing of a $7 million public offering. The offering includes 28 million shares of common stock at $0.25 per share, along with common warrants to purchase up to 28 million shares. The offering is expected to close on June 18, 2025, subject to customary closing conditions [1].

The gross proceeds from the offering are expected to be $7 million, before deducting the placement agent’s fees and other offering expenses. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering. The company intends to use the net proceeds to continue the Phase 2 clinical trial for NCG-Cap and for working capital and general corporate purposes [1].

The public offering price of $0.25 per share represents a significant discount to recent trading prices, which is typical for biotech companies with limited cash reserves seeking to fund clinical development. The five-year warrant term creates long-term dilution potential while providing investors with substantial upside if the company's Next Generation Cancer (NGC) therapies demonstrate clinical success [2].

Critically, this capital will fund the company's Phase 2 clinical trial for NGC-Cap, suggesting that without this fundraising, Processa would likely lack sufficient resources to advance this program. The involvement of H.C. Wainwright as placement agent indicates the company needed institutional assistance to secure this funding, typically resulting in significant fees that will reduce the net proceeds available for operations [2].

This financing should provide Processa with an operational runway extension, though the exact duration depends on their burn rate and the specific capital requirements of the NGC-Cap Phase 2 trial. Early-stage biotech companies typically require sequential financings to reach value-inflection milestones, suggesting this raise may sustain operations for approximately 12-18 months based on industry norms for similar-sized companies advancing Phase 2 programs [2].

References:
[1] https://www.processapharmaceuticals.com/news-media/press-releases/detail/138/processa-pharmaceuticals-announces-pricing-of-7-million
[2] https://www.stocktitan.net/news/PCSA/processa-pharmaceuticals-announces-pricing-of-7-million-public-f0jwanpe0781.html