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In a recent 8-K filing with the Securities and Exchange Commission, Rani Therapeutics Holdings , Inc., a Delaware-incorporated pharmaceutical company, announced entering into a significant agreement with an existing institutional investor on Tuesday. The company, known under the ticker (NASDAQ:RANI), has agreed to issue a new Series D common stock warrant, allowing the purchase of up to 13,160,172 shares of its Class A Common Stock at $0.65 per share. According to InvestingPro data, RANI’s stock has seen a significant 45% return over the last week, though it remains down nearly 87% over the past year. The company’s current market capitalization stands at approximately $40 million, with analysts anticipating sales growth in the current year despite ongoing profitability challenges.
Additionally, Rani Therapeutics has agreed to reduce the exercise price of outstanding Series B and Series C common stock warrants, also to $0.65 per share. The institutional investor has committed to fully exercising these warrants. This adjustment from their previous exercise prices of $3.08 and $3.00 per share for Series B and Series C warrants, respectively, is a notable alteration in the company’s financing strategy. InvestingPro analysis indicates the company is currently burning through cash rapidly, with a concerning current ratio of 0.88, suggesting short-term obligations exceed liquid assets.
The company anticipates gross proceeds of approximately $4.3 million from the exercise of the Series B and Series C warrants, before accounting for advisory fees and estimated expenses. The closing of the transactions under the Letter Agreement is expected to take place on Wednesday, May 21, 2025. The Series D Warrant will be valid for five years from the date of stockholder approval, which the company will seek in compliance with Nasdaq’s rules.
Rani Therapeutics plans to file a resale registration statement for the shares issuable upon the exercise of the Series D Warrant within 45 days, and to use its best efforts to have the statement declared effective by the SEC by the date of the aforementioned stockholder approval. The warrant includes a provision that prevents the issuance of shares that would result in the investor owning more than 9.99% of the company’s common stock.
The net proceeds from this transaction are intended to be used by Rani LLC, a subsidiary of Rani Therapeutics, for working capital and other general corporate purposes. Maxim Group LLC served as the financial advisor for the transaction, with an agreed compensation of 5.25% of the gross proceeds. Based on InvestingPro’s Fair Value analysis, the stock appears to be fairly valued at current levels. Investors seeking deeper insights can access comprehensive financial health metrics and 12 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
The issuance of the Series D Warrant is part of a private placement transaction exempt from registration under the Securities Act of 1933, as amended, and is subject to certain conditions, including stockholder approval and effective registration of the resale of the shares. This SEC filing provides the basis for the reported information.
In other recent news, Rani Therapeutics Holdings announced a collaboration with Chugai Pharmaceutical (TADAWUL:2070) to explore the use of Rani’s RaniPill® technology for delivering Chugai’s therapeutic antibodies. This partnership aims to assess the oral delivery potential of biologic drugs, which are traditionally administered through injections. Rani Therapeutics is also preparing to start a Phase 1 study for RT-114, an oral treatment for obesity, by mid-2025. Analysts from Oppenheimer have adjusted Rani Therapeutics’ price target to $4.00 from $14.00, maintaining an Outperform rating, while Stifel analysts have kept a Buy rating with an $8.00 target. BTIG also maintained a Buy rating, setting a $14.00 target, citing the potential of RT-114 in the obesity treatment market.
Rani Therapeutics recently received a notice from the Nasdaq Stock Exchange for non-compliance with listing requirements, specifically the Market Value of Listed Securities threshold. The company has until October 28, 2025, to regain compliance to avoid delisting. Despite these challenges, Rani Therapeutics has shown promising preclinical results for RT-114, demonstrating comparable bioavailability to existing treatments. The company ended the fourth quarter of 2024 with $27.6 million in cash, expected to support operations into the third quarter of 2025.
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