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CRANBURY, N.J. - Palatin Technologies (NYSE:PTN), Inc. (NYSE American: PTN), a biopharmaceutical firm with a market capitalization of $23.22 million, has announced a new funding round through a registered direct offering and a concurrent private placement, expected to close on February 10, 2025. The company, whose stock has declined about 76% over the past year according to InvestingPro data, has entered into agreements with a healthcare-focused institutional investor for the sale of approximately 4.7 million shares at $1.00 each.
In addition to the stock sale, Palatin will issue warrants for the purchase of an equivalent number of shares at the same price, exercisable six months post-issuance and expiring five and a half years later. The combined transactions are anticipated to generate gross proceeds of around $4.7 million, which the company plans to allocate for general corporate purposes. This funding comes at a crucial time, as InvestingPro analysis shows the company is quickly burning through cash, with a concerning current ratio of 0.26.
The offering is being facilitated by A.G.P./Alliance Global Partners (NYSE:GLP) as the lead placement agent, with Laidlaw & Company (UK) Ltd. serving as co-placement agent. It is being conducted under a shelf registration statement filed with the U.S. Securities and Exchange Commission on February 7, 2022, and declared effective on September 26, 2022.
Palatin, known for its work on melanocortin receptor system modulators, aims to develop innovative treatments for diseases with significant unmet medical needs. The company typically seeks to collaborate with industry leaders to maximize the commercial potential of its products.
The stock sale and warrant issuance are subject to standard closing conditions. The securities in the private placement may not be offered or sold in the United States absent registration or an exemption from registration requirements. This press release is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities. For a comprehensive understanding of Palatin’s financial health and future prospects, investors can access detailed analysis and over 30 key financial metrics through InvestingPro’s exclusive research reports.
In other recent news, Palatin Technologies has completed its Phase 2 clinical trial for an obesity treatment, a significant development in the field. The study, BMT-801, tested the safety and efficacy of a combination of MC4R bremelanotide and GLP-1/GIP tirzepatide in treating obesity. The company has also announced its corporate milestones for 2025, focusing on the development of treatments for obesity and related diseases, with multiple clinical trials slated to begin in the second half of the year.
Furthermore, the biopharmaceutical firm recently completed the enrollment phase of its Phase 2 clinical trial for PL8177, a melanocortin-1 receptor (MC1R) agonist being tested for the treatment of ulcerative colitis (UC). Despite an early closure due to strategic shifts, the study continues to evaluate the safety, efficacy, tolerability, and other aspects of PL8177.
These developments come as H.C. Wainwright maintains a Buy rating on shares of Palatin Technologies. As the company continues to progress in its clinical trials and development programs, these recent developments provide a glimpse into the company’s ongoing efforts in the medical community.
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