Aspire Biopharma raises $21 million in private placement

Aspire Biopharma Holdings Inc. (NASDAQ: ASBP) completed an $11 million initial closing of a private placement offering on February 6, with potential total proceeds of up to $21 million.

The biopharmaceutical company sold 13,750 shares of Series A Convertible Preferred Stock at $800 per share in the initial closing. The securities purchase agreement allows for the sale of up to 26,250 preferred shares total, which are convertible into common stock.

A second closing remains subject to customary conditions outlined in the securities purchase agreement filed with the Securities and Exchange Commission. The company stated the offering aims to help regain compliance with Nasdaq stockholders' equity listing requirements.

Proceeds from the initial closing will support legacy business operations, fund strategic initiatives, pay offering expenses, and repay certain existing debt. The company expects to reduce outstanding indebtedness and strengthen its balance sheet following the transaction.

RBW Capital Partners LLC, with securities services through Dawson James Securities Inc., served as sole placement agent for the private placement.

The securities were offered only to accredited investors and have not been registered under the Securities Act of 1933. Aspire Biopharma agreed to file registration statements with the SEC covering resale of shares issuable upon conversion of the preferred stock.

Aspire Biopharma develops patent-pending sublingual drug delivery technology designed to deliver medications rapidly through direct bloodstream access, avoiding the gastrointestinal tract. The technology can be applied to various active pharmaceutical ingredients and bioactive substances.

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