Biofrontera Inc. Completes $4.2 million Senior Secured Convertible Note Offering

Biofrontera Inc. (NASDAQ: BFRI) recently announced the successful closure of a private placement, whereby the company secured a $4.2 million senior secured convertible note. The transaction was carried out with Biofrontera’s principal shareholders, marking a strategic move for the biopharmaceutical company specializing in photodynamic therapy (PDT).

The note, which matures on November 22, 2027, comes with a 10% per annum paid-in-kind interest and is backed by the company’s assets. Holders have the option to convert the principal amount into common shares at a fixed rate of $0.78. Alternatively, if the 10-day volume-weighted average price of Biofrontera shares on Nasdaq surpasses $2.50, and specific criteria are fulfilled, the entire note will be automatically converted into common shares. The note includes standard restrictive covenants to control the company’s ability to create liens, pay dividends, undertake debt, or engage in transactions with affiliates, with certain exceptions and qualifications as outlined in the notes.

Proceeds from this funding round are anticipated to primarily bolster Biofrontera’s operational activities and strategic investments, supporting both commercial and clinical development pursuits aimed at sustaining growth. Prof. Hermann Luebbert, CEO of Biofrontera, expressed optimism regarding the company’s financial outlook, citing the note’s proceeds as a foundation for achieving financial objectives in 2025 and beyond.

Biofrontera Inc. focuses on dermatological treatments with an emphasis on PDT. The company’s current commercial offering is the Ameluz® drug-device combination alongside the RhodoLED® lamp series for PDT of Actinic Keratosis (AK), targeting pre-cancerous skin lesions. Biofrontera continues to expand its product applications through clinical trials intended to address non-melanoma skin cancers and moderate to severe acne.

Investors and security holders are urged to familiarize themselves with the risks and uncertainties highlighted in the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Forward-looking statements in this press release are subject to inherent risks and actual results may differ significantly from anticipated outcomes.

For Investor Relations inquiries, individuals can contact Andrew Barwicki at 1-516-662-9461 or ir@bfri.com.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Biofrontera’s 8K filing here.

Biofrontera Company Profile

Biofrontera Inc, a biopharmaceutical company, engages in the commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's products are used for the treatment of actinic keratoses, which are pre-cancerous skin lesions, as well as impetigo, a bacterial skin infection.