FibroBiologics, Inc., a pharmaceutical company based in Houston, Texas, has disclosed the approval of annual incentive bonuses for its top executives following a recent board meeting. The decision, which involves the company's CEO, Chief Scientific Officer, and Interim CFO, was made public in a Form 8-K filing with the Securities and Exchange Commission on Thursday. According to InvestingPro data, the company, currently valued at $56.14 million, faces significant challenges with negative EBITDA of $12.36 million in the last twelve months.
The Compensation Committee and the Board of Directors approved the fiscal year 2024 bonuses on Wednesday, January 23, 2025. The bonuses were awarded despite the company's challenging year, with InvestingPro analysis showing a 94.5% decline in stock price over the past year and an overall "Weak" financial health rating. The bonuses were awarded based on the company's performance in the previous fiscal year, which ended December 31, 2024.
CEO Pete O'Heeron received a total compensation of $1,805,199 for fiscal 2024, including a base salary of $600,000 and a bonus of $390,000. Chief Scientific Officer Hamid Khoja was awarded a total compensation of $853,646, with a base salary of $325,000 and a bonus of $150,000. Additionally, Interim CFO Robert E. Hoffman received a bonus of $75,000.
The financial details of the bonuses were included in an updated Summary Compensation Table, which also covered stock option awards and other compensation for the executives. For instance, General Counsel Ruben A. Garcia, who joined the company on March 1, 2024, was granted stock options valued at $2,283,274 and received a bonus of $142,188, with his total compensation amounting to $2,752,843 for the year.
FibroBiologics emphasized that the bonuses were part of its compensatory arrangements for certain officers and were consistent with the company's commitment to rewarding its leadership for their contributions to the company's success.
This report is based on information from a press release statement.
In other recent news, biotechnology firm FibroBiologics has secured a significant equity deal with Yorkville Advisors Global, providing the option to sell up to $25 million of its common stock over a two-year period. This funding is expected to support the completion of their first-in-human trial for diabetic foot ulcers and IND-enabling studies for their psoriasis program. In addition, FibroBiologics has entered into a new agreement with investment groups GEM Global Yield LLC SCS and GEM Yield Bahamas Limited, resulting in the issuance of 1,152,074 shares at a fixed price of $2.17 per share.
Analyst reports by Rodman & Renshaw and H.C. Wainwright have initiated coverage with a Buy rating and a price target of $12.00. FibroBiologics has also been actively securing patents for innovative treatments, including one for splenomegaly, a condition often associated with various immune-related diseases.
Furthermore, FibroBiologics has filed a patent application aimed at improving the safety and efficacy of cell therapies by mitigating the risk of instant blood-mediated inflammatory reaction. The company also reported unregistered sales of equity securities, providing $3,887,000 in gross proceeds to GEM Global Yield LLC SCS.
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