FibroBiologics, Inc. (NASDAQ: FBLG) completed a registered direct offering of 5,227,275 shares of its common stock at a price of $0.33 per share, generating gross proceeds of approximately $1.7 million. The offering was priced at‑the‑market under Nasdaq rules and is expected to close on or about December 16 2025.
In addition to the equity sale, the company issued unregistered warrants to purchase an additional 5,227,275 shares at an exercise price of $0.33 per share. The warrants will be exercisable only after stockholder approval and will expire five years after that approval. Placement services were provided by H.C. Wainwright & Co., and the offering was filed under a Form S‑3 registration statement.
FibroBiologics plans to use the net proceeds for working capital and general corporate purposes, a short‑term infusion of cash needed to support its ongoing clinical development and operational needs. The company’s cash balance has been shrinking, with a nine‑month net loss of $15.4 million and cash and cash equivalents of $4.9 million as of September 30 2025, and it has received “going concern” warnings in recent SEC filings. The new capital will help bridge the gap until the next milestone in its pipeline of fibroblast‑based therapies for chronic diseases.
The market reacted sharply to the announcement, with the stock falling 16.14 % after the news. Investors viewed the offering as a dilutive equity raise that underscores the company’s persistent need for capital, a pattern that has seen multiple serial financings in recent months. The decline reflects concerns that the company’s pre‑revenue status and high burn rate may require further dilutive measures, eroding shareholder value.
FibroBiologics has a portfolio of more than 270 patents and is advancing candidates for diabetic foot ulcers, psoriasis, and multiple sclerosis. Despite the strong intellectual property base, the company’s serial equity raises and ongoing cash burn signal that it has not yet achieved a sustainable revenue stream. Management’s focus on securing capital to fund clinical trials and regulatory milestones highlights the company’s strategy of incremental progress, but the repeated need for financing raises questions about the long‑term viability of its business model.
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