GRI Bio, Inc. completed a best‑efforts public offering of 10,666,667 shares of its common stock and an equal number of Series F warrants, all priced at $0.75 per share. The offering is expected to generate gross proceeds of approximately $8 million, with an additional $8 million possible if all warrants are exercised before they expire five years after issuance.
The company will use the net proceeds to advance the development of its lead candidate, GRI‑0621, for idiopathic pulmonary fibrosis (IPF), and to support working capital and general corporate purposes. GRI‑0621 is the company’s primary focus for IPF and is also being explored for systemic lupus erythematosus.
GRI Bio is a clinical‑stage biotechnology company that reported a net loss of $3.0 million for the quarter ended March 31 2025 and held cash and cash equivalents of about $3.3 million. The company previously raised $5 million in a public offering and has received a notice of non‑compliance with Nasdaq listing rules, underscoring the urgency of the new capital raise to maintain operations and fund its pipeline.
The Phase 2a trial of GRI‑0621 met its primary and secondary endpoints, demonstrating safety, tolerability, and biomarker improvements that support the drug’s potential in IPF. These positive clinical results have generated analyst optimism, even as the company’s financial position remains constrained.
Market reaction to the offering has been negative, largely driven by the company’s financial distress and the Nasdaq compliance notice. Analysts, however, remain optimistic because the trial data suggest a viable therapeutic opportunity for GRI‑0621.
CEO Marc Hertz said, "We continue to make very encouraging progress with our ongoing Phase 2a trial of our lead program, GRI‑0621."
A best‑efforts offering means the underwriters will use their best efforts to sell the shares but do not guarantee that all shares will be sold. The Series F warrants are exercisable immediately at the same $0.75 price and will expire five years after issuance, providing potential upside if the company’s share price rises.
The equity offering provides the liquidity needed to sustain GRI Bio’s clinical operations and advance its pipeline, a critical step for a company that has faced significant cash‑flow constraints and regulatory compliance challenges.
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