Oragenics, Inc. Announces Closing of Public Offering

Rhea-AI Summary

Oragenics, Inc. (NYSE American: OGEN), a company developing intranasal pharmaceuticals for neurological disorders, has closed its public offering of 3,078,378 common stock shares and 5,028,206 pre-funded warrants. The offering price was $0.55 per share and $0.549 per pre-funded warrant, with a $0.001 exercise price for each warrant. The company raised approximately $4.45 million in gross proceeds before deducting fees and expenses. Oragenics plans to use the funds for the continued development of its ONP-002 product candidate and general corporate purposes. Post-offering, Oragenics has 8,659,071 outstanding common stock shares and 5,028,206 outstanding pre-funded warrants. Dawson James Securities, Inc. acted as the sole placement agent for this offering.

Positive

• Raised approximately $4.45 million in gross proceeds
• Funds to be used for development of ONP-002 product candidate
• Successful closing of public offering indicates investor interest

Negative

• Potential dilution of existing shareholders due to new share issuance
• Pre-funded warrants may lead to additional dilution if exercised

Financial Analyst

Oragenics' $4.45 million public offering is a double-edged sword for investors. While it provides much-needed capital for ONP-002 development and working capital, it comes at the cost of significant dilution. The company's outstanding shares have increased by 55%, from 5,580,693 to 8,659,071, with potential for further dilution from pre-funded warrants. The offering price of $0.55 per share represents a substantial discount to recent trading prices, suggesting weak investor demand. This capital raise, while necessary for operations, may put downward pressure on the stock price in the short term. Long-term prospects hinge on the success of ONP-002, but the company's cash burn rate and potential need for future dilutive offerings remain concerns.

Medical Research Analyst

The $4.45 million raised provides Oragenics with important funding to advance ONP-002, their intranasal pharmaceutical for neurological disorders. This capital injection could accelerate clinical development and potentially bring the product closer to market. However, the relatively small amount raised raises questions about the scope and duration of planned studies. Investors should closely monitor the company's burn rate and clinical milestones to assess if additional funding will be needed before reaching significant value-creating events. The focus on intranasal delivery for neurological disorders is promising, potentially offering improved drug efficacy and patient compliance, but success hinges on forthcoming clinical data.

Market Research Analyst

This offering reflects the challenging funding environment for small-cap biotech companies. The significant dilution and discounted share price suggest investor skepticism about Oragenics' near-term prospects. However, the company's focus on intranasal pharmaceuticals for neurological disorders taps into a growing market trend. The global neurology drugs market is projected to reach $137.1 billion by 2029, with a CAGR of 5.2%. Oragenics' success will depend on differentiating ONP-002 in this competitive landscape. Investors should watch for upcoming clinical trial results and potential partnerships as key catalysts that could shift market perception and valuation.

SARASOTA, Fla., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Oragenics, Inc. (NYSE American: OGEN), a company focused on developing unique, intranasal pharmaceuticals for the treatment of neurological disorders, today announced the closing of its previously announced offering of 3,078,378 shares of its common stock and pre-funded warrants to purchase up to 5,028,206 shares of common stock at an offering price of $0.55 per share and $0.549 per pre-funded warrant. Immediately after the closing of the offering, the Company has 8,659,071 shares of common stock outstanding and pre-funded warrants to acquire up to 5,028,206 shares of common stock outstanding. The exercise price of each pre-funded warrant is $0.001.

The gross proceeds of the offering are approximately $4.45 million before deducting placement agent fees and other estimated offering expenses payable by the Company. The Company intends to use the proceeds from the offering to fund the continued development of its ONP-002 product candidate and for general corporate purposes and working capital.

Dawson James Securities, Inc. acted as the sole placement agent for the offering.

Shumaker, Loop & Kendrick, LLP, represented the Company in connection with the offering, and ArentFox Schiff LLP, Washington, DC, represented the placement agent.

The offering was made pursuant to a registration statement on Form S-1 (File No. 333-281618), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 16, 2024, and declared effective on September 3, 2024.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities 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 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 communication contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s beliefs and assumptions and information currently available. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project” and similar expressions that do not relate solely to historical matters identify forward-looking statements. Investors should be cautious in relying on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed in any such forward-looking statements. These factors include, but are not limited to, those described in our Form 10-K and other filings with the U.S. Securities and Exchange Commission. All information set forth in this press release is as of the date hereof. You should consider these factors in evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. We do not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by law.

Oragenics, Inc.
Janet Huffman, Chief Financial Officer
813-286-7900
jhuffman@oragenics.com

Investor Relations:
Rich Cockrell
404.736.3838
achv@cg.capital 

FAQ

How much did Oragenics (OGEN) raise in its recent public offering?

Oragenics (OGEN) raised approximately $4.45 million in gross proceeds before deducting placement agent fees and other estimated offering expenses.

What was the offering price for Oragenics (OGEN) shares in the September 2024 public offering?

The offering price was $0.55 per share of common stock and $0.549 per pre-funded warrant.

How many shares and warrants did Oragenics (OGEN) issue in its September 2024 offering?

Oragenics issued 3,078,378 shares of common stock and pre-funded warrants to purchase up to 5,028,206 shares of common stock.

What will Oragenics (OGEN) use the proceeds from its September 2024 offering for?

Oragenics intends to use the proceeds to fund the continued development of its ONP-002 product candidate and for general corporate purposes and working capital.