Aspire Biopharma Holdings announced the closing of the second and final tranche of its previously announced private placement, bringing total gross proceeds to $21.0 million before fees and expenses. The financing strengthens the company’s balance sheet and supports its broader strategy to expand both its pharmaceutical delivery platform and potential acquisition efforts.
The final tranche included the issuance of 12,500 shares of Series A Convertible Preferred Stock, generating $10.0 million in gross proceeds. Combined with the initial tranche, the total raise enables Aspire to exceed the $2.5 million stockholders’ equity requirement needed to maintain its Nasdaq Capital Market listing.
Proceeds from the offering will be used for working capital, general corporate purposes, and to fund a portion of the anticipated acquisition of Dura Control Systems (DCS), a global automotive supplier.
Earlier in April, Aspire entered into a letter of intent to acquire 100% of DCS for $30 million in cash. DCS is a designer and manufacturer of automotive driver control systems with more than $200 million in projected 2025 revenue and over $20 million in adjusted EBITDA.
To support the acquisition, Aspire also secured a commitment letter from a national financial institution for a senior secured credit facility of up to $22.5 million. The facility is expected to take the form of a five-year term loan priced at 325 basis points above the one-month Secured Overnight Financing Rate, subject to final documentation and customary closing conditions.
The company indicated that it does not expect to raise additional equity to complete the DCS acquisition, instead relying on the new credit facility alongside existing capital resources.
Aspire continues to advance its patent-pending sublingual drug delivery platform, which is designed to improve therapeutic effectiveness by delivering compounds directly into the bloodstream while bypassing the gastrointestinal system. The company is also expanding commercialization of its consumer product, BUZZ BOMB™, as part of a dual-track growth strategy combining biopharma innovation with revenue-generating industrial assets.
KEY QUOTES:
“Finalizing this $21 million raise is a transformative step for Aspire. These funds solidify our capital position as we advance our sublingual delivery platform and accelerate consumer awareness and retail expansion of BUZZ BOMB™, our innovative caffeine product. Simultaneously, we are executing a dual-track growth strategy, by pursuing a high-revenue, cash-flow-positive acquisition of DCS that, if consummated, could substantially enhance our financial position.”
“The potential acquisition of this established automotive systems manufacturer could introduce significant revenue-generating capabilities while allowing us to optimize our drug delivery technology and advance commercial opportunities. Our intent is to acquire DCS without any additional equity capital by utilizing a new senior secured credit facility, once finalized, with a leading financial institution. We believe the combination of significant revenue from the automotive systems business and the potential high margin opportunities from both our drug and supplement product pipeline could strengthen earnings visibility, support a more capital-efficient growth model, and enhance long-term shareholder value.”
Kraig Higginson, Interim CEO, Aspire Biopharma Holdings, Inc.
