--- title: "Eton sells 583,334 shares at $12.00 in $7.0 million registered direct offering" url: "https://aibio.space/news/eton-sells-583-334-shares-12-00-7-0-million-registered-direct-offering/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2024-12-12" section: "Financings" tickers: "NASDAQ:ETON" source: "https://www.sec.gov/Archives/edgar/data/1710340/000143774924037363/eton20241212_424b5.htm" summary: "The shares went to one institutional investor, and the prospectus says no placement agent or underwriter was involved. The prospectus puts the immediate di" --- By the aibio.space news desk. Sources - [Eton Pharmaceuticals, Inc. 424B5 (2024-12-12)](https://www.sec.gov/Archives/edgar/data/1710340/000143774924037363/eton20241212_424b5.htm) - [Eton Pharmaceuticals, Inc. 8-K (2024-12-12)](https://www.sec.gov/Archives/edgar/data/1710340/000143774924037367/eton20241211_8k.htm) [ETON](https://aibio.space/companies/eton-pharmaceuticals/) 2024-12-12 # Eton sells 583,334 shares at $12.00 in $7.0 million registered direct offering Tickers [ETON](https://aibio.space/companies/eton-pharmaceuticals/) The shares went to one institutional investor, and the prospectus says no placement agent or underwriter was involved. The prospectus puts the immediate dilution to the buyer at $11.35 per share. ## Key facts - **Company**: Eton Pharmaceuticals, Inc. (NASDAQ: ETON) - **News type**: Financings - **Primary source**: [Eton Pharmaceuticals, Inc. 424B5 (2024-12-12)](https://www.sec.gov/Archives/edgar/data/1710340/000143774924037363/eton20241212_424b5.htm) *Midtown Manhattan and a downtown tower in haze. CC0, via rawpixel. The picture shows the field, not the companies named.* Eton Pharmaceuticals, Inc. agreed on December 10, 2024 to sell 583,334 shares of common stock to an institutional investor at $12.00 per share. The sale is a registered direct offering, meaning the shares are registered and sold straight to the buyer. The [prospectus supplement](https://www.sec.gov/Archives/edgar/data/1710340/000143774924037363/eton20241212_424b5.htm) says "there is no placement agent or underwriter in connection with this offering," so the company receives all of the proceeds. The total offering price is $7,000,008.00, and proceeds before expenses are the same amount. The supplement estimates total offering expenses at approximately $0.03 million. Delivery of the shares was expected on or about December 12, 2024, subject to customary closing conditions. The closing price of Eton's common stock on the Nasdaq Global Market on December 11, 2024 was $12.11 per share. The shares were sold under the company's Form S-3 shelf registration statement, File No. 333-271196, and the prospectus supplement is tied to the prospectus dated May 2, 2023. The purchase agreement contains customary representations, warranties, agreements and indemnification rights. The [8-K](https://www.sec.gov/Archives/edgar/data/1710340/000143774924037367/eton20241211_8k.htm) filed the same day describes the same terms and the same use of proceeds. ## Dilution The dilution section puts net tangible book value at $10.1 million, or $0.39 per share, as of September 30, 2024, based on 25,836,204 shares outstanding on that date. After the sale, the supplement says, adjusted net tangible book value would be $17.1 million, or $0.65 per share. That is an increase of $0.26 per share to existing holders and an immediate dilution of $11.35 per share to the investor buying in this offering. The same section refers to "Purchase Warrants issued in this offering" and says the dilution figures assume no value for them. The supplement does not otherwise describe those warrants, including their exercise price, term or number of shares, and the 8-K describes only shares. ## Use of proceeds Eton plans to use the proceeds, together with existing cash and cash equivalents, to fund acquisition opportunities for products or product candidates "when and if they arise." The company does not say which products it is targeting, and it does not commit the money to any particular deal. ## The commercial business Eton describes itself as an innovative pharmaceutical company focused on rare diseases. It lists five commercial products. ALKINDI SPRINKLE, a granule hydrocortisone formulation for adrenocortical insufficiency in children, was approved by the FDA in September 2020, and the company says it has three issued patents that extend to 2034. Carglumic Acid, a generic version of Carbaglu, treats hyperammonemia from NAGS deficiency. The others are Betaine Anhydrous for homocystinuria, Nitisinone for hereditary tyrosinemia type 1 and PKU GOLIKE, a medical formula for phenylketonuria that the company acquired in March 2024. The company's late-stage candidates are ET-400, ET-600 and the ZENEO hydrocortisone autoinjector. The supplement says Eton submitted a new drug application for ET-400 during 2024, which could allow approval and launch in 2025. It expects to submit a new drug application for ET-600 during 2025, which could allow a launch in early 2026. ZENEO is described as a needle-free autoinjector still under development for adrenal crisis. The supplement does not describe any of the three as approved. ## What the filing leaves out The supplement does not report a net loss, a cash balance at a recent quarter-end or a debt figure. It incorporates financial statements by reference rather than setting them out. The 8-K says the company intends to use the proceeds for acquisitions, but it does not name a target or a budget for one. The supplement gives a closing price of $12.11 on December 11, 2024, the day after the purchase agreement date, against the $12.00 price per share in the sale. The filing gives no reason for setting the price below that closing price. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story ETON Eton Pharmaceuticals, Inc. NASDAQ ยท United States Open the starter desk ## More in Financings Financings ### [INmune Bio raises $4.50 million in registered direct offering with warrants](https://aibio.space/news/inmune-bio-raises-4-50-million-registered-direct-offering-warrants/) Oct 29, 2026 Financings ### [Lexeo Therapeutics files $300 million shelf registration](https://aibio.space/news/lexeo-therapeutics-files-300-million-shelf-registration/) Oct 29, 2026 Financings ### [ProKidney files $650 million shelf with $200 million Jefferies sales program](https://aibio.space/news/prokidney-files-650-million-shelf-200-million-jefferies-sales-program/) Oct 29, 2026 --- Source page: https://aibio.space/news/eton-sells-583-334-shares-12-00-7-0-million-registered-direct-offering/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Eton sells 583,334 shares at $12.00 in $7.0 million registered direct offering", 2024-12-12, https://aibio.space/news/eton-sells-583-334-shares-12-00-7-0-million-registered-direct-offering/