Brickell Biotech to sell additional $15M worth of stock as critical clinical trial begins

BOULDER — Brickell Biotech Inc. (Nasdaq: BBI) is planning to raise an additional $15 million via new stocks and warrants to fuel it through the final clinical trial for its flagship anti-underarm sweating drug candidate.

In filings with the U.S. Securities and Exchange Commission Tuesday, the Boulder company stated its intention to issue additional shares or pre-funded warrants amounting to 4.99% or 9.99% ownership of the company for qualified buyers.

The pre-funded warrants, which would give Brickell the proceeds of such sale upfront rather than the time of the warrant being exercised and converted to shares, would expire in five years.

The prospectus is not finalized, meaning the offering is subject to change.

Brickell is raising funds as it kicks off the final U.S. trial for Sofpironium Bromide, a gel treatment for excessive underarm sweating. The drug already recieved sale approval in Japan in a joint venture between Brickell and Kaken Pharmaceutical Co. Ltd.

If the drug is approved by the U.S. Food and Drug Administration for sale here, the warrant holders may execute those contracts and sell the likely higher-priced shares at a profit against what they are likely to pay in the next several weeks.

Brickell’s stock has traded below $1 per share since the end of May, drawing a delisting warning from the Nasdaq.

If executed at Tuesday’s share price of 99 cents per share, the fundraiser could add a little more than 15 million shares to Brickell’s existing 27.8 million shares outstanding.

Brickell’s stock tumbled 11.69% in early trading Tuesday to 87 cents per share.

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BOULDER — Brickell Biotech Inc. (Nasdaq: BBI) is planning to raise an additional $15 million via new stocks and warrants to fuel it through the final clinical trial for its flagship anti-underarm sweating drug candidate.

In filings with the U.S. Securities and Exchange Commission Tuesday, the Boulder company stated its intention to issue additional shares or pre-funded warrants amounting to 4.99% or 9.99% ownership of the company for qualified buyers.

The pre-funded warrants, which would give Brickell the proceeds of such sale upfront rather than the time of the warrant being exercised and converted to shares, would expire in five years.

The prospectus is not finalized, meaning the offering is subject to change.

Brickell is raising funds as it kicks off the final U.S. trial for Sofpironium Bromide, a gel treatment for excessive underarm sweating. The drug already recieved sale approval in Japan in a joint venture between Brickell and Kaken Pharmaceutical Co. Ltd.

If the drug is approved by the U.S. Food and Drug Administration for sale here, the warrant holders may execute those contracts and sell the likely higher-priced shares at a profit against what they are likely to pay in the next several weeks.

Brickell’s stock has traded below $1 per share since the end of May, drawing a delisting warning from the Nasdaq.

If executed at Tuesday’s share price of 99 cents per share, the fundraiser could add a little more than 15 million shares to Brickell’s existing 27.8 million shares outstanding.

Brickell’s stock tumbled 11.69% in early…