Oragenics Announces Closing of Public Offering

Rhea-AI Summary

Oragenics, Inc. (OGEN) completes a public offering, raising $2.1 million for the development of ONP-002, a neurosteroid drug for mild traumatic brain injuries. ThinkEquity and Laidlaw & Company act as book-running managers.

Insights

Financial Analyst

The completion of Oragenics, Inc.'s underwritten public offering, raising $2.1 million through the sale of 1,400,000 shares, is a strategic move aimed at bolstering the company's financial position. The offering price of $1.50 per share reflects the company's current market valuation and investor appetite for such offerings. The decision to provide underwriters with a 45-day option to purchase additional shares to cover over-allotments could potentially mitigate the risk of stock price volatility post-offering.

Investors should note that the net proceeds are earmarked for the development of ONP-002, a neurosteroid drug compound for treating concussions, which indicates a focused allocation of capital towards a key project in the company's pipeline. This targeted use of funds may accelerate the development timeline and potentially bring the product closer to market, which could have positive implications for the company's revenue prospects in the long-term.

However, the relatively modest size of the offering suggests that the company may require additional capital in the future, which could lead to further dilution for existing shareholders. Stakeholders should monitor the company's burn rate and subsequent funding rounds to assess the sustainability of its financial strategy.

Medical Research Analyst

Oragenics' focus on the development of ONP-002 for the treatment of mild traumatic brain injuries positions the company within a niche yet significant segment of the pharmaceutical market. Concussions are a common injury with a substantial unmet medical need for effective treatments, which could create a lucrative opportunity for Oragenics if ONP-002 proves to be effective and safe in clinical trials.

The drug's characterization as a unique neurosteroid compound suggests it may have a novel mechanism of action, which could differentiate it from existing treatments and provide competitive advantages. However, the success of this compound is contingent upon rigorous clinical testing and eventual approval from regulatory bodies such as the FDA. The capital raised will be crucial for advancing ONP-002 through these necessary stages.

Given the complexities and risks associated with drug development, particularly in the field of neurology, investors should consider the long development horizons and the high attrition rates in clinical trials. The company's progress in the development of ONP-002 will be a critical factor in evaluating its future prospects.

SARASOTA, Fla.--(BUSINESS WIRE)-- Oragenics, Inc. (NYSE American: OGEN) (“Oragenics” or the “Company”), a company focused on developing unique, intranasal nanoparticle pharmaceuticals for the treatment of neurological disorders, today announced the closing of its previously announced underwritten public offering of 1,400,000 shares of its common stock at a public offering price of $1.50 per share, for gross proceeds of $2.1 million, before deducting underwriting discounts, and offering expenses payable by the Company. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 210,000 shares of its common stock at the public offering price, less discounts, to cover over-allotments, if any.

The Company intends to use the net proceeds from the offering to fund the continued development of ONP-002, which is a unique neurosteroid drug compound intended to treat mild traumatic brain injuries also known as concussions, and for general corporate purposes and working capital.

ThinkEquity and Laidlaw & Company (UK) Ltd. acted as joint book-running managers for the offering.

The offering is being made pursuant to an effective shelf registration statement that has been filed with the U.S. Securities and Exchange Commission (the “SEC”). The final prospectus supplement relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Oragenics

Oragenics is a development-stage biotechnology company focused on nasal delivery of pharmaceutical medications in neurology and fighting infectious diseases, including drug candidates for treating mild traumatic brain injury (mTBI), also known as concussion, and for treating Niemann Pick Disease Type C (NPC), as well as proprietary powder formulation and an intranasal delivery device. For more information, please visit www.oragenics.com.

Forward Looking Statements

This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms and similar expressions intended to identify forward-looking statements. These statements include statements related to the intended use of proceeds. The Company cautions readers that forward-looking statements are based on management’s expectations and assumptions as of the date of this news release and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, risks related to prevailing market conditions, the impact of general economic, industry or political conditions in the United States, and the Company’s ability to satisfy customary closing conditions associated with the offering. Forward-looking statements reflect its analysis only on their stated date, and the Company undertakes no obligation to update or revise these statements except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229906466/en/

Oragenics, Inc.

Janet Huffman, Chief Financial Officer

813-286-7900

jhuffman@oragenics.com

Source: Oragenics, Inc.

FAQ

What is the purpose of the public offering announced by Oragenics, Inc. (OGEN)?

The public offering aims to raise funds for the development of ONP-002, a neurosteroid drug compound for treating mild traumatic brain injuries.

How much was raised through the public offering by Oragenics, Inc. (OGEN)?

Oragenics raised $2.1 million through the public offering of 1,400,000 shares of its common stock at a price of $1.50 per share.

Who were the joint book-running managers for the offering by Oragenics, Inc. (OGEN)?

ThinkEquity and Laidlaw & Company (UK) Ltd. acted as joint book-running managers for the public offering.

What is the main focus of Oragenics, Inc. (OGEN) in terms of drug development?

Oragenics focuses on developing intranasal nanoparticle pharmaceuticals for the treatment of neurological disorders, with a specific emphasis on ONP-002 for mild traumatic brain injuries.