SARASOTA, Fla. - Oragenics (NYSE:OGEN), Inc. (NYSE American: OGEN), a biotechnology firm specializing in intranasal pharmaceuticals for neurological disorders, has declared its public offering of 1,100,000 shares at $1.00 each. The offering, expected to close on Wednesday, aims to raise approximately $1.1 million before fees and expenses.
The funds are earmarked for the development of ONP-002, a product candidate, alongside general corporate and working capital needs. Dawson James Securities, Inc. serves as the sole placement agent for this transaction.
This offering follows a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on January 13, 2023, which became effective on January 25, 2023. The securities are offered through a prospectus, a copy of which is obtainable from Dawson James Securities, Inc.
Oragenics, engaged in developing treatments for mild traumatic brain injury and Niemann Pick Disease Type C, among others, is making this offering under the SEC's safe harbor provisions. Investors are advised to thoroughly review the prospectus and related SEC filings for a comprehensive understanding of the company and the offering.
The company cautions that this press release contains forward-looking statements that involve risks and uncertainties, and actual results may differ materially. Oragenics has expressed its intention to comply with NYSE American's continued listing standards by October 18, 2025.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such offer, solicitation or sale would be unlawful. All information is based on the statement from the press release.
In other recent news, Oragenics, Inc., a biotechnology firm, has made considerable progress in its business operations. The company recently gained approval for its compliance plan from the NYSE American, following a detailed submission addressing the issues that led to non-compliance with the exchange's listing standards. Oragenics has also successfully completed a Phase I trial for a novel technology designed to treat concussions and other neurological disorders.
In addition, Oragenics has managed to secure approximately $2.1 million through a public offering and an additional $890,000 from a private transaction, funds anticipated to support the ongoing development of their neurological drug candidates.
The company has also appointed Dr. William Frank Peacock as Chief Clinical Officer, who is expected to play a crucial role in the upcoming Phase II clinical trial of ONP-002, their lead drug candidate for treating mild Traumatic Brain Injury.
These recent developments indicate Oragenics' commitment to advancing its product portfolio and creating long-term value. The company is collaborating with Avance Clinical, a Contract Research Organization, for the Phase II study of ONP-002. It's important to note that these are recent developments, and investors are encouraged to stay updated on the company's progress.
InvestingPro Insights
In light of Oragenics, Inc.'s recent announcement of its public offering, it is crucial to consider the company's financial health and market performance to understand the broader context.
According to InvestingPro data, Oragenics has faced significant challenges, with revenue for the last twelve months as of Q1 2024 at a mere $0.02 million, representing a steep decline of 84.54% in revenue growth. Gross profit margins have been deeply negative, at -70099.44%, indicating substantial costs outweighing revenue.
InvestingPro Tips highlight several areas of concern for investors. Oragenics has experienced considerable stock price depreciation, with a one-week total return of -14.71% and an even more drastic six-month price total return of -75.28%. Such figures suggest that the market has reacted negatively to the company's performance and outlook. Moreover, Oragenics does not pay a dividend, which could be a deterrent for income-focused investors.
While the company's liquid assets exceed its short-term obligations, indicating some level of financial flexibility, Oragenics operates with a moderate level of debt and has not been profitable over the last twelve months. These factors, combined with the valuation implying a poor free cash flow yield, may raise questions about the company's ability to sustain its operations and finance its growth initiatives through the capital raised in its public offering.
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