Processa Pharmaceuticals Announces $7 Million Public Offering

Processa Pharmaceuticals has priced a public offering of 28 million shares of common stock and associated common warrants at $0.25 per share, raising $7 million. The company plans to use the funds to continue its Phase 2 clinical trial for NCG-Cap and for general corporate purposes. The offering is expected to close on June 18, 2025, subject to customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent.

Processa Pharmaceuticals (NASDAQ: PCSA), a clinical-stage pharmaceutical company focused on Next Generation Cancer (NGC) therapies, has priced a public offering of 28 million shares of common stock and associated common warrants at $0.25 per share, raising $7 million [1]. The company plans to use the funds to continue its Phase 2 clinical trial for NCG-Cap and for general corporate purposes [2]. The offering is expected to close on June 18, 2025, subject to customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent [1].

The public offering, which includes common warrants with an exercise price of $0.25 per share and a five-year expiration period, represents a significant dilution to existing shareholders due to the 1:1 warrant coverage [1]. The offering price of $0.25 per share is likely a discount to recent trading prices, which is typical for biotech companies seeking to fund clinical development [1].

The proceeds from the offering will be used to fund the Phase 2 clinical trial for NCG-Cap, indicating that without this fundraising, Processa would likely lack sufficient resources to advance this program [1]. The involvement of H.C. Wainwright as placement agent suggests that the company required institutional assistance to secure this funding, which typically results in significant fees reducing the net proceeds available for operations [1].

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 [1].

References:
[1] https://www.stocktitan.net/news/PCSA/processa-pharmaceuticals-announces-pricing-of-7-million-public-f0jwanpe0781.html
[2] https://www.globenewswire.com/news-release/2025/06/17/3100974/0/en/Processa-Pharmaceuticals-Announces-Pricing-of-7-Million-Public-Offering.html