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Opus Genetics, Inc. (NASDAQ:IRD), a pharmaceutical company with a current market capitalization of $37.25 million, announced the close of its underwritten public offering and a private placement on Monday, raising total proceeds of approximately $20 million. The company, based in Durham, North Carolina, specializes in pharmaceutical preparations and is known by its former name, Ocuphire Pharma, Inc. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet.
The public offering, which closed today, involved the sale of 12,219,736 shares of common stock and warrants to purchase up to 21,052,631 shares. Each share was sold together with a warrant to purchase one share of common stock at a public price of $0.95 per share and related warrant. Additionally, the company sold 8,832,895 pre-funded warrants at a price of $0.9499 each. The offering price represents a significant discount to the stock’s current trading price of $1.15, which has shown remarkable strength with a 33.81% gain over the past week. InvestingPro analysis indicates the stock appears undervalued based on its Fair Value assessment.
The warrants have an initial exercise price of $0.95 per share and are exercisable for five years from the date of issuance. If certain conditions are met, including the company’s stock achieving specific price and volume thresholds following the release of OPGx-BEST1 DUO-1001 Cohort 1 data, the company may call the warrants.
In a concurrent private placement, Opus Genetics entered into a subscription agreement with CEO Dr. George Magrath and board chairman Cam Gallagher. The company issued 1,176,471 shares of common stock and warrants to purchase an equivalent number of shares at an offering price of $1.275 per share and related warrant. The private placement warrants have an initial exercise price of $1.15 and may be called by the company under similar conditions as the public offering warrants.
The securities issued in both the public offering and private placement are not registered under the Securities Act of 1933 and were sold in reliance on exemptions from registration. The company’s securities were offered pursuant to a registration statement on Form S-3 filed with the Securities and Exchange Commission on January 10, 2024.
Craig-Hallum Capital Group, LLC, served as the sole underwriter for the public offering. The gross proceeds from the offering are expected to fund corporate expenses and advance the company’s product development initiatives. Opus Genetics has not disclosed specific plans for the use of the proceeds. With analyst price targets ranging from $8 to $15 per share, InvestingPro subscribers can access 10+ additional exclusive insights about Opus Genetics’ financial health and growth prospects.
This news is based on information provided in a recent SEC filing by Opus Genetics, Inc.
In other recent news, Opus Genetics disclosed a $56.8 million net loss for the year ending December 31, 2024, with operating activities consuming approximately $25.6 million. The company also reported having about $30.3 million in cash and cash equivalents, although these figures are preliminary and subject to adjustments. Additionally, Opus Genetics announced a $21.5 million capital raise through a public offering and private placement, which could potentially increase to $43 million if warrants are fully exercised. The funds are intended to advance gene therapy programs and support general corporate purposes. In corporate governance developments, Opus Genetics enhanced shareholder rights by amending bylaws to ease procedural requirements for stockholders. The company is also involved in legal proceedings, having filed a patent infringement lawsuit against Sandoz (SIX:SDZ) Inc. to protect its drug RYZUMVI™ from generic competition. Furthermore, Opus Genetics received a Paragraph IV Certification Notice from Sandoz, challenging the validity of several patents related to RYZUMVI™. Lastly, Opus Genetics granted stock options to new employees, aligning with Nasdaq’s disclosure requirements for equity awards.
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