Benzinga | Nov 12, 2021 07:25AM EST

Fortress Bio Subsidiary Journey Medical Prices IPO Of 3.52M Shares

Journey Medical Corporation (NASDAQ:DERM) ("Journey Medical"), a commercial-stage pharmaceutical company that focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions, and a subsidiary of Fortress Biotech, Inc. (NASDAQ:FBIO) ("Fortress"), today announced the pricing of its initial public offering of common stock.

Journey Medical's pricing of its underwritten public offering consisted of 3,520,000 shares of its common stock at a price to the public of $10 per share for gross proceeds to Journey Medical of $35.2 million. Journey Medical expects to receive approximately $31.4 million in net proceeds from the offering, after deducting underwriting commissions and estimated offering expenses. Journey Medical also has granted the underwriters a 30-day option to purchase up to 528,000 additional shares of common stock, at the public offering price, less the underwriting discount, to cover over-allotments, if any. All of the shares of common stock are being offered by Journey Medical.

Journey Medical's common stock is expected to begin trading on the Nasdaq Capital Market on November 12, 2021 under the ticker symbol "DERM." The offering is expected to close on November 16, 2021, subject to customary closing conditions.

B. Riley Securities is acting as the sole book-running manager for the proposed offering. Roth Capital Partners is acting as a co-manager for the proposed offering.

The Company expects to use the net proceeds from the sale of the shares for general corporate purposes, including working capital, research and development, payments for research and development -- licenses acquired, sales and marketing activities, general administrative matters, operating expenses and capital expenditures. The Company may also use a portion of the net proceeds from the offering to acquire or invest in businesses, products, services or technologies.

The offering of these shares will be made only by means of a prospectus. Copies of the final prospectus relating to this offering, when available, may be obtained from: B. Riley Securities, Inc., Attention: Prospectus Department, 1300 North 17th Street, Suite 1300, Arlington, Virginia 22209, by telephone: 703-312-9580, or by email at prospectuses@brileyfin.com.

The offering is being made pursuant to a registration statement previously filed with and subsequently declared effective by the Securities and Exchange Commission (the "SEC"). This registration statement relating to the offering was filed with the SEC and is available at the SEC's website at http://www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.