LANGHORNE, Pa., Aug. 12, 2024 (GLOBE NEWSWIRE) — NEXGEL, Inc. (NASDAQ: NXGL), a leading provider of medical and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels for healthcare and consumer applications, today announced it has entered into definitive agreements for the issuance and sale of an aggregate of 444,000 of its shares of common stock and the issuance of warrants to purchase up to an aggregate of 222,000 shares of common stock for a combined offering purchase price of $2.50 per share of common stock in a registered direct offering priced. The warrants will have an exercise price of $4.25 per share and be exercisable immediately upon issuance and have a term of five years from the date of issuance.
NEXGEL insiders, including members of the management team and Board of Directors, participated in the offering. Insiders are subject to a six-month lock-up period from the date of closing. The gross proceeds from the offering are approximately $1,110,000, before deducting offering expenses.
Adam Levy, CEO of NEXGEL, commented, “After the strategic acquisition of international beauty brand, Silly George, and the immediate requirement for additional inventory and marketing to meet the higher than expected demand for its products, management and the Board agreed to provide additional working capital to the Company along with existing and new investors. We believe this capital will allow us to comfortably continue to operate the business and strengthens our balance sheet as we approach significant growth opportunities in the remainder of this year.”
Alere Financial Partners, LLC, a division of Cova Capital Partners, LLC acted as the exclusive placement agent for the offering.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About NEXGEL, Inc.
NEXGEL is a leading provider of healthcare, beauty, and over-the-counter (OTC) products including ultra-gentle, high-water-content hydrogels. Based in Langhorne, Pa., the Company has developed and manufactured electron-beam, cross-linked hydrogels for over two decades. NEXGEL brands include Silverseal®, Hexagels®, Turfguard®, Kenkoderm® and Silly George®. Additionally, NEXGEL has strategic contract manufacturing relationships with leading consumer healthcare companies.
