Oragenics, Inc. Announces Pricing of Public Offering

Rhea-AI Summary

Oragenics, Inc. (NYSE American: OGEN), a company developing intranasal pharmaceuticals for neurological disorders, has announced the pricing of a public offering. The company plans to sell 8,106,584 shares of common stock (or pre-funded warrants) at $0.55 per share. The offering is expected to close around September 5, 2024, with anticipated gross proceeds of $4.45 million. Oragenics intends to use the net proceeds to fund the development of its ONP-002 product candidate and for general corporate purposes. Dawson James Securities, Inc. is acting as the sole placement agent for this offering, which is being made pursuant to an effective registration statement filed with the SEC.

Positive

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

Negative

• Potential dilution of existing shareholders' ownership
• Offering price of $0.55 per share may be below current market price
• Additional expenses related to placement agent fees and offering costs

Financial Analyst

Oragenics' public offering of $4.45 million at $0.55 per share represents a significant dilution for existing shareholders, given the company's current market cap. This capital raise, while providing necessary funds for ONP-002 development, comes at a high cost to shareholder value. The pricing below $1 per share suggests weak market confidence and potential delisting risks from NYSE American. The use of pre-funded warrants alongside common stock adds complexity and potential future dilution. Investors should closely monitor the company's burn rate and progress in ONP-002 development to assess the adequacy of this funding round for reaching meaningful milestones.

Medical Research Analyst

The $4.45 million raise for Oragenics' ONP-002, an intranasal treatment for neurological disorders, is a double-edged sword. While it provides important funding for continued development, the amount seems insufficient for completing significant clinical milestones in the neurology space. The focus on intranasal delivery is innovative, potentially offering improved brain penetration and patient compliance. However, without more details on ONP-002's specific indications or stage of development, it's challenging to gauge the potential return on this investment. Investors should seek clarity on the expected timeline and specific developmental goals this funding will support.

Legal Expert

The offering's compliance with SEC regulations, including the effective S-1 registration and detailed prospectus, demonstrates Oragenics' adherence to legal requirements. However, the inclusion of a safe harbor statement in the press release is notably absent, which is unusual for forward-looking statements about fund usage and closing conditions. The company's use of a placement agent rather than an underwriter suggests a best efforts offering, potentially indicating challenges in securing firm commitments. Investors should carefully review the full prospectus for risk factors and exact terms of the pre-funded warrants, as these could have significant legal and financial implications.

SARASOTA, Fla., Sept. 04, 2024 (GLOBE NEWSWIRE) -- Oragenics, Inc. (NYSE American: OGEN), a company focused on developing unique, intranasal pharmaceuticals for the treatment of neurological disorders, today announced that it has entered into a placement agency agreement for the purchase and sale of 8,106,584 shares of its common stock (or pre-funded warrants in lieu thereof) at an offering price of $0.55 per share (or $0.549 per pre-funded warrant in lieu thereof). The closing of the public offering is expected to occur on or about September 5, 2024, subject to the satisfaction of customary closing conditions.

The gross proceeds of the offering are anticipated to be approximately $4.45 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. is acting as the sole placement agent for the offering.

The offering is being 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. 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. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering, which will provide more information about Oragenics and the offering.

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 those relating to the completion of the public offering, the satisfaction of customary closing conditions, the intended use of proceeds from the public offering and other statements that are predictive in nature. 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.

FAQ

What is the purpose of Oragenics' (OGEN) public offering announced on September 4, 2024?

Oragenics (OGEN) is conducting a public offering to raise approximately $4.45 million in gross proceeds. The funds will be used to continue the development of their ONP-002 product candidate and for general corporate purposes and working capital.

How many shares is Oragenics (OGEN) offering in its September 2024 public offering?

Oragenics (OGEN) is offering 8,106,584 shares of its common stock (or pre-funded warrants in lieu thereof) in its September 2024 public offering.

What is the price per share for Oragenics' (OGEN) September 2024 public offering?

The offering price for Oragenics' (OGEN) September 2024 public offering is $0.55 per share of common stock (or $0.549 per pre-funded warrant in lieu thereof).

When is the expected closing date for Oragenics' (OGEN) September 2024 public offering?

The closing of Oragenics' (OGEN) September 2024 public offering is expected to occur on or about September 5, 2024, subject to the satisfaction of customary closing conditions.