Jupiter Neurosciences, Inc. Announces Closing of $11 million Initial Public Offering

Rhea-AI Summary

Jupiter Neurosciences (Nasdaq: JUNS) has completed its initial public offering, raising $11 million through the sale of 2,750,000 shares at $4.00 per share. Trading began on the Nasdaq Capital Market on December 3, 2024, under the symbol 'JUNS'.

The proceeds will fund the Phase II clinical trial of JOTROL™ for Parkinson's Disease, strategic agreements in South-East Asia, R&D for new products, license fees to Aquanova AG, debt repayment, and working capital. Dominari Securities led the underwriting, with Revere Securities as co-manager.

Positive

• Successfully raised $11 million through IPO
• Secured Nasdaq Capital Market listing
• Funds allocated for Phase II clinical trial advancement
• Clear allocation plan for proceeds including debt repayment

Negative

• Dilution of existing shareholders through 2.75 million new shares
• Portion of proceeds going to debt repayment rather than growth
• Outstanding license fees indicate existing financial obligations

Insights

Financial Analyst

The successful completion of Jupiter Neurosciences' $11 million IPO marks a significant milestone for the clinical-stage pharmaceutical company. At $4.00 per share, the offering of 2,750,000 shares provides important capital for advancing their lead product JOTROL™.

The strategic allocation of funds demonstrates a clear focus on clinical development and business expansion. Key investments include their Phase II Parkinson's Disease trial, expansion into South-East Asian markets and debt reduction. The company's listing on Nasdaq (JUNS) enhances visibility and potential access to additional capital markets.

While the $11 million raise is relatively modest for a biotech IPO, it provides essential runway for near-term objectives. Investors should monitor cash burn rate and potential need for future financing rounds, particularly given the capital-intensive nature of clinical trials and pharmaceutical development.

Medical Research Analyst

JOTROL™, Jupiter's resveratrol-based platform targeting neuroinflammation, represents an interesting approach to treating neurodegenerative conditions. The focus on Parkinson's Disease for their Phase II trial is strategic, given the significant unmet medical need and market potential in this indication.

Resveratrol's anti-inflammatory properties and neuroprotective effects have shown promise in preclinical studies. The company's unique formulation could potentially overcome bioavailability challenges that have historically resveratrol's therapeutic use. The planned expansion into South-East Asia and evaluation of new product opportunities suggests a robust development strategy beyond their lead program.

Jupiter, Florida, Dec. 04, 2024 (GLOBE NEWSWIRE) -- Jupiter Neurosciences, Inc. (Nasdaq: JUNS) (the “Company” or “Jupiter Neurosciences”), a clinical stage pharmaceutical company advancing a pipeline targeting neuroinflammation with its unique resveratrol platform product, JOTROL^™, today announced the closing of its initial public offering of 2,750,000 shares of common stock at a price of $4.00 per share for gross proceeds of $11 million, before deducting underwriting discounts and other related expenses.

The Company’s shares began trading on the Nasdaq Capital Market on December 3, 2024 under the symbol “JUNS.”

The Company intends to use the net proceeds from the Offering to fund the Phase II clinical trial of its product candidate JOTROL^™ in patients with Parkinson’s Disease, Strategic Service Agreements to accelerate business activities in South-East Asia, research and development activities regarding evaluation of new product opportunities, payment of the outstanding annual license fees due to Aquanova AG, the repayment of debt, working capital and other general corporate purposes.

Dominari Securities LLC acted as the lead underwriter, with Revere Securities LLC acting as the co-manager for the offering. 

Anthony, Linder & Cacomanolis, PLLC acted as legal counsel to Jupiter Neurosciences and ArentFox Schiff LLP acted as legal counsel to the Underwriters in connection with the offering.

The Company’s Registration Statement on Form S-1 (File No. 333- 260183) relating to the securities being offered was previously filed with, and subsequently declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on November 8, 2024. The offering was made by means of a prospectus, forming part of the Registration Statement. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the prospectus relating to the offering may be obtained, when available, from Dominari Securities LLC by email at info@dominarisecurities.com, by standard mail to Dominari Securities LLC, 725 Fifth Avenue, 23rd Floor New York, NY 10022, or by telephone at (212) 393-4500; or from Revere Securities LLC by email at contact@reveresecurities.com, by standard mail to Revere Securities LLC, 560 Lexington Avenue, 16th Floor, New York, NY 10022, or by telephone at +1 (212) 688-2350.

This press release has been prepared for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, and no sale of these securities may be made in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Jupiter Neurosciences, Inc.

Jupiter Neurosciences, Inc. is a clinical-stage pharmaceutical company focused on treating neuroinflammation, with a current focus on CNS disorders and rare diseases. The Company’s platform product, JOTROL^™, is an enhanced orally administered resveratrol formulation designed and intended to deliver therapeutically relevant, safe levels of resveratrol. The Company’s pipeline is focused broadly on CNS disorder and includes indications such as Alzheimer’s Disease, Parkinson’s Disease, Mucopolysaccharidoses Type I, Friedreich’s Ataxia, and MELAS. More information may be found on the Company’s website www.jupiterneurosciences.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations, including the use of proceeds from the Offering. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. The Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to read the risk factors contained in the Company’s final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

Contacts

Investor Relations
Alison Silva, President & CBO
a.silva@jupiterneurosciences.com

FAQ

How much did Jupiter Neurosciences (JUNS) raise in its IPO?

Jupiter Neurosciences raised $11 million in gross proceeds through its IPO by selling 2,750,000 shares at $4.00 per share.

When did JUNS stock begin trading on Nasdaq?

JUNS stock began trading on the Nasdaq Capital Market on December 3, 2024.

What will Jupiter Neurosciences use the IPO proceeds for?

The proceeds will fund Phase II clinical trials for JOTROL™ in Parkinson's Disease, strategic agreements in South-East Asia, R&D, license fees payment, debt repayment, and working capital.

Who were the underwriters for Jupiter Neurosciences' IPO?

Dominari Securities acted as the lead underwriter, with Revere Securities as the co-manager for the offering.