Bio-Path Holdings Announces Closing of $4.0 Million Private Placement Priced At-the-Market Under Nasdaq Rules
Bio-Path Holdings (NASDAQ: BPTH) has completed a $4.0 million private placement.
This involved the issuance and sale of 1,809,955 shares of common stock and series A and B warrants to purchase an equal number of shares.
The purchase price was $2.21 per share, with the warrants exercisable immediately at $2.00 per share.
The series A warrants expire in five years, while the series B warrants are short-term and expire in 24 months.
H.C. Wainwright & Co. served as the exclusive placement agent. The net proceeds will be used for working capital and general corporate purposes.
- Bio-Path Holdings closed a $4.0 million private placement.
- Issued 1,809,955 shares of common stock and warrants.
- Warrants have a potential future revenue generation with an exercise price of $2.00 per share.
- Series A warrants have a longer term (5 years).
- Net proceeds are intended for working capital and general corporate purposes.
- H.C. Wainwright & Co. acted as the exclusive placement agent, adding credibility to the offering.
- Private placement of $4.0 million before fees may result in less net proceeds.
- Issuance of new shares causes shareholder dilution.
- Warrants increase potential dilution further upon exercise.
- Unregistered securities may limit future liquidity and resale options.
- Short-term series B warrants expire in 24 months, posing a risk if market conditions are unfavorable.
Insights
Bio-Path Holdings' completion of a $4.0 million private placement is a noteworthy development for shareholders and potential investors. The immediate influx of capital is positive, especially since the company intends to use the funds for working capital and general corporate purposes. This implies a focus on maintaining liquidity and supporting ongoing operations, which is critical for a biotechnology firm engaged in the complex and costly process of drug development.
However, investors should consider the dilutive effect of issuing nearly 1.81 million shares of common stock and an equal number of warrants. This increased share count can reduce the value of existing shares. The combination of series A and B warrants introduces an additional layer of potential dilution, with the series A warrants exercisable over five years and the series B warrants over two years, both at an exercise price of $2.00 per share.
From an industry perspective, it is not unusual for biotech companies to rely on private placements and similar financings. However, the key to understanding the long-term impact lies in how effectively Bio-Path deploys these new resources toward productive initiatives that can drive future growth.
Investors should monitor upcoming earnings reports and corporate updates for signals on how this capital is being used and its effect on the company's progress.
The private placement signals Bio-Path Holdings' ongoing need to secure funding through equity-based transactions, which is typical for companies at the biotech development stage. The choice of H.C. Wainwright & Co. as the placement agent is strategic, given their reputable history in the biotechnology sector, suggesting confidence in Bio-Path's potential among industry specialists.
The pricing of the placement at-the-market under Nasdaq rules indicates transparency and alignment with market conditions, which can be reassuring for investors. Nonetheless, the potential dilution due to warrants needs to be weighed against the benefits of increased liquidity. At-the-market pricing reflects current investor sentiment and fair valuation, minimizing risks of overpricing or underpricing, which could affect trust and future capital raising efforts.
Given the fast-paced nature of biopharmaceutical development, the injected funds' utilization for working capital will likely influence Bio-Path's ability to expedite its drug development pipelines. Monitoring pipeline milestones, such as clinical trial progress and regulatory feedback, will be important for assessing the true value addition from this funding round.
HOUSTON, June 05, 2024 (GLOBE NEWSWIRE) -- Bio-Path Holdings, Inc. (NASDAQ:BPTH) (“Bio-Path” or the “Company”), a biotechnology company leveraging its proprietary DNAbilize® liposomal delivery and antisense technology to develop a portfolio of targeted nucleic acid cancer drugs, today announced that it has closed its previously announced private placement for the issuance and sale of an aggregate of 1,809,955 shares of its common stock (or common stock equivalents in lieu thereof), series A warrants to purchase up to 1,809,955 shares of common stock and short-term series B warrants to purchase up to 1,809,955 shares of common stock at a purchase price of
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.
The gross proceeds to the Company from the offering were approximately
The securities described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the securities described above, including the shares of common stock underlying the warrants, may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Pursuant to a registration rights agreement, the Company has agreed to file a resale registration statement covering the securities described above.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Bio-Path Holdings, Inc.
Bio-Path is a biotechnology company developing DNAbilize®, a novel technology that has yielded a pipeline of RNAi nanoparticle drugs that can be administered with a simple intravenous transfusion. Bio-Path’s lead product candidate, prexigebersen (BP1001, targeting the Grb2 protein), is in a Phase 2 study for blood cancers, and BP1001-A, a drug product modification of prexigebersen, is in a Phase 1/1b study for solid tumors. The Company’s second product, BP1002, which targets the Bcl-2 protein, is being evaluated for the treatment of blood cancers and solid tumors, including lymphoma and acute myeloid leukemia. In addition, an IND application is expected to be filed for BP1003, a novel liposome-incorporated STAT3 antisense oligodeoxynucleotide developed by Bio-Path as a specific inhibitor of STAT3.
For more information, please visit the Company's website at www.biopathholdings.com.
Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the federal securities laws, including statements related to the intended use of proceeds from the private placement. These statements are based on management's current expectations and accordingly are subject to uncertainty and changes in circumstances. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Any statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including market and other conditions, Bio-Path’s ability to regain and maintain compliance with Nasdaq’s continued listing requirements, Bio-Path’s ability to raise needed additional capital on a timely basis in order for it to continue its operations, have success in the clinical development of its technologies, the timing of enrollment and release of data in such clinical studies, the accuracy of such data, limited patient populations of early stage clinical studies and the possibility that results from later stage clinical trials with much larger patient populations may not be consistent with earlier stage clinical trials, the maintenance of intellectual property rights, that patents relating to existing or future patent applications will be issued or that any issued patents will provide meaningful protection of our drug candidates, the impact, risks and uncertainties related to global pandemics, including the COVID-19 pandemic, and actions taken by governmental authorities or others in connection therewith, and such other risks which are identified in Bio-Path's most recent Annual Report on Form 10-K, in any subsequent quarterly reports on Form 10-Q and in other reports that Bio-Path files with the Securities and Exchange Commission from time to time. These documents are available on request from Bio-Path or at www.sec.gov. Bio-Path disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Information:
Investors
Will O’Connor
Stern Investor Relations, Inc.
212-362-1200
will@sternir.com
Doug Morris
Investor Relations
Bio-Path Holdings, Inc.
832-742-1369
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