CNS Drug-Maker Reviva Announces $18M Public Offering of Common Stock and Warrants to Fund R&D

Reviva Pharmaceuticals Holdings, Inc. (NASDAQ: RVPH) has announced plans for a public offering of common stock (or its equivalents) alongside warrants to purchase common stock. The late-stage pharmaceutical company developing therapies for central nervous system (CNS), inflammatory, and cardiometabolic diseases today priced an underwritten public offering. The offering includes 12 million shares of common stock. It also includes series A warrants for 6 million shares and series B warrants for 12 million shares of common stock. The company intends to allocate the funds toward advancing research and development and supporting general corporate initiatives.

Common Stock Sold with Series A and B Warrants at $1.50

Following the announcement of the offering, each share of common stock was sold with two types of warrants. The first is a series A warrant, which allows the purchase of 0.5 shares of common stock for each warrant. The second is a series B warrant, which allows the purchase of one share of common stock for each warrant. These shares and warrants were sold at a combined price of $1.50 per share, which includes both series A and series B warrants.

The series A warrants can be exercised immediately, allowing the purchase of shares at $1.50 per whole share. However, they will expire six months from issuance. The series B warrants also allow immediate exercise, with a purchase price of $1.50 per share. These warrants will expire five years from issuance.

The company expects the offering to close on or about December 18, 2024, pending customary closing conditions. JMP Securities is serving as the sole bookrunner for the offering, which will be conducted under an already filed shelf registration statement. The offering’s final terms and size will depend on market conditions, and completion is not guaranteed.

Reviva to Raise $18 Million for R&D and General Corporate Purposes

Reviva anticipates gross proceeds of around $18.0 million from the public offering, excluding underwriting fees and offering expenses. The company plans to allocate the net proceeds toward advancing research and development activities, as well as supporting working capital and other corporate needs.

As a late-stage biopharmaceutical company, Reviva is focused on discovering, developing, and commercializing therapeutics for diseases with unmet medical needs. The company’s pipeline targets central nervous system (CNS), inflammatory, and cardiometabolic conditions. Currently, Reviva is developing two drug candidates: brilaroxazine (RP5063) and RP1208, both of which are new chemical entities discovered internally. Reviva holds composition of matter patents for these two compounds in the United States, Europe, and several other countries.

Positive Speech Latency Data from Phase 3 RECOVER Trial of Brilaroxazine in Schizophrenia

Brilaroxazine is an innovative chemical entity with strong affinity for serotonin and dopamine receptors linked to schizophrenia. The global Phase 3 RECOVER trial in schizophrenia found that brilaroxazine met all primary and secondary endpoints. At a 50 mg dose, it significantly reduced major symptoms compared to a placebo. Additionally, brilaroxazine exhibited a well-tolerated side effect profile and had lower discontinuation rates than the placebo group.

Moreover, a clinical drug-drug interaction (DDI) study showed that CYP3A4 inhibitors do not significantly affect brilaroxazine. Reviva has completed all required toxicology and safety pharmacology studies for brilaroxazine. The company now plans to develop the drug for other neuropsychiatric conditions, such as bipolar disorder, major depressive disorder (MDD), and ADHD.

Furthermore, preclinical studies indicate that brilaroxazine may be effective in treating inflammatory diseases like psoriasis, PAH, and IPF. It has demonstrated the ability to reduce fibrosis and inflammation in animal models. Importantly, the U.S. FDA has granted brilaroxazine Orphan Drug Designation for both PAH and IPF.

RP-1208 is a compound that acts as a dopamine transporter (DAT) antagonist, norepinephrine transporter (NET) inhibitor, and serotonin transporter (SERT) inhibitor.

Author

Bernice Lottering