Oragenics, Inc. Announces Closing of Public Offering

Rhea-AI Summary

Oragenics announced the closing of its public offering of 1,100,000 shares at $1.00 per share, raising approximately $1.1 million. The funds will support the development of their ONP-002 product candidate and cover general corporate expenses. Dawson James Securities acted as the sole placement agent, and the offering was made under a shelf registration statement filed with the SEC. Legal representation was provided by Shumaker, Loop & Kendrick, LLP for Oragenics and ArentFox Schiff LLP for the placement agent.

Positive

• Raised approximately $1.1 million from the public offering.
• Funds will support the development of ONP-002 product candidate.

Negative

• Potential shareholder dilution with the issuance of 1,100,000 new shares.

Financial Analyst

Oragenics, Inc. has successfully closed a public offering, raising approximately $1.1 million before expenses. This capital will primarily support the development of their ONP-002 product candidate, aimed at treating neurological disorders. From a financial perspective, this is a modest capital influx that can help sustain ongoing R&D efforts and operational costs.

However, the relatively small size of the offering indicates potential constraints in the company's current market valuation and investor confidence. Investors should consider the dilution effect on existing shares and the company's ability to generate future revenue to justify this new funding.

It is also important to note that the proceeds are earmarked for general corporate purposes and working capital, which suggests that while the funds will support ongoing projects, they aren't designated for any substantial new initiatives. This might limit the immediate impact on the company's growth trajectory.

Market Research Analyst

The decision to use a public offering to raise funds highlights Oragenics' strategy to leverage equity financing over debt, minimizing interest obligations but potentially increasing shareholder dilution. For investors, this move can be seen as a standard approach for early-stage biotech firms that might not yet be profitable but need continuous funding for R&D.

The involvement of Dawson James Securities and legal firms like Shumaker, Loop & Kendrick, LLP and ArentFox Schiff LLP, adds a layer of credibility to the process, ensuring compliance and proper structuring of the offering. Nevertheless, the success of this strategy largely hinges on the future prospects of ONP-002 and its market acceptance if it progresses to commercialization.

While the short-term impact on stock price might be neutral to slightly negative due to dilution, the long-term potential could be favorable if ONP-002 proves effective and gains regulatory approval.

SARASOTA, Fla., June 26, 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 public offering of 1,100,000 shares of its common stock at an offering price of $1.00 per share.

The gross proceeds of the offering are approximately $1.1 million before deducting placement agent fees and other estimated offering expenses payable by the Company. The Company intends to use the net 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 shelf registration statement on Form S-3 (File No. 333-269225), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on January 13, 2023, and declared effective on January 25, 2023. The offering will be made only by means of a written prospectus. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC and will be available on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from Dawson James Securities, Inc., 101 North Federal Highway, Suite 600, Boca Raton, FL 33432 or by telephone at (561) 391-5555, or by email at investmentbanking@dawsonjames.com.

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, including with regard to the Company’s ability to regain compliance with the NYSE American’s continued listing standards by October 18, 2025. 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
CG Capital
404-736-3838
ogen@cg.capital

FAQ

What is the size of Oragenics' recent public offering?

Oragenics' recent public offering involved 1,100,000 shares of its common stock.

What was the offering price for Oragenics' public offering?

The offering price for Oragenics' public offering was $1.00 per share.

How much did Oragenics raise from the public offering?

Oragenics raised approximately $1.1 million from the public offering.

What will Oragenics use the proceeds from the public offering for?

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

What is the stock symbol for Oragenics?

The stock symbol for Oragenics is OGEN.

Who acted as the placement agent for Oragenics' public offering?

Dawson James Securities acted as the sole placement agent for Oragenics' public offering.