Processa Pharmaceuticals, which is developing an analog therapy for necrotic skin disease, lowered the proposed deal size for its upcoming IPO on Wednesday.
The Hanover, MD-based company now plans to raise $16 million by offering 3.2 million shares at a price of $5, well below the last close of its shares on the OTCQB (PCSA). The company had previously filed to offer 2.2 million shares at a price of $8.45. At the the revised price, Processa Pharmaceuticals will raise -12% less in proceeds than previously anticipated to command a fully diluted market value of $44 million (-35% vs. previous terms). Because its post-IPO market cap is now less than $50 million, Processa is no longer eligible for tracking and will be excluded from Renaissance Capital's stats.
Processa Pharmaceuticals was founded in 2011 and plans to list on the Nasdaq under the symbol PCSA. Craig-Hallum Capital Group and The Benchmark Company are the joint bookrunners on the deal.
