Are there any covenants or restrictions attached to the offering that could limit the company’s operational flexibility?

Answer

The press release does not disclose any specific covenants or restrictive clauses tied to the $85 million underwritten common‑stock offering. The filing simply states the number of shares being sold, the price ($4.00 per share), and the expected gross proceeds. In a typical equity‑only offering of this size, the only material limitation that is usually imposed is a standard lock‑up agreement for insiders and existing shareholders—generally 90 days after the pricing date—preventing them from selling additional shares during that period. This lock‑up is designed to protect the offering’s pricing stability rather than to restrict the company’s day‑to‑day operations or strategic decisions.

Because the proceeds are being used to fund the launch and commercialization of the Anaphylm™ sublingual film (subject to FDA approval), the company retains full discretion over R&D, manufacturing, and marketing activities. No debt‑related covenants (e.g., leverage ratios, cash‑flow tests, or asset‑sale restrictions) are introduced by an equity‑only issuance, so the firm’s operational flexibility remains largely unchanged.

Trading implication: The absence of restrictive covenants means the capital raise should not constrain management’s ability to execute growth initiatives, which is a positive signal for the stock’s upside potential. Investors can focus on the company’s execution risk (e.g., FDA clearance and product launch) rather than worrying about covenant‑‑driven liquidity or refinancing pressures. If the lock‑up expires as expected, a modest secondary‑sell pressure could emerge, but it is unlikely to materially affect the share‑price dynamics in the near term.