Oragenics, Inc. Announces Pricing of Public Offering

Rhea-AI Summary

Oragenics, a company focused on developing intranasal pharmaceuticals for neurological disorders, announced the pricing of a public offering. The company plans to offer 1,100,000 shares of its common stock at $1.00 per share, aiming to raise around $1.1 million before costs. The closing date is expected on or about June 26, 2024, pending customary conditions. The net proceeds will fund the development of Oragenics' product candidate ONP-002, along with other corporate purposes and working capital. Dawson James Securities is the sole placement agent for this offering. This offering is made under a shelf registration statement filed and declared effective by the SEC. Interested investors should read the full prospectus available on the SEC website.

Positive

• Oragenics aims to raise $1.1 million through a public offering at $1.00 per share.
• The proceeds will support the development of ONP-002, a key product candidate.

Negative

• The offering may dilute existing shareholders' equity.
• Gross proceeds are before deducting placement agent fees and expenses.

Financial Analyst

The public offering announced by Oragenics, Inc. is a significant event that has immediate financial implications. This type of activity generally aims to raise capital to fund ongoing projects or to manage corporate expenses. In this case, Oragenics intends to use the net proceeds of approximately $1,100,000 to further develop its ONP-002 product candidate and for general corporate needs.

From an investor's perspective, the offering price of $1.00 per share can serve as a benchmark for the stock's valuation. If the demand for the shares is high, it could indicate confidence in the company's future prospects, particularly its ONP-002 product. Conversely, if investors are hesitant, the share price could potentially decline in the short term due to the dilution of existing shares.

This public offering is being managed by Dawson James Securities, Inc., which adds a layer of credibility but also incurs placement agent fees that need to be deducted from the gross proceeds.

The successful closing of this offering depends on customary closing conditions and any delay or issues in meeting these conditions could negatively impact the stock performance.

Pharmaceutical Industry Analyst

For Oragenics, Inc., the funds raised from this public offering are particularly critical for the advancement of their ONP-002 product candidate. Intranasal pharmaceuticals for neurological disorders represent a niche but growing sector and securing adequate funding is essential for progressing through the various stages of clinical trials.

The use of proceeds for general corporate purposes and working capital also indicates that the company is focused on maintaining its operational liquidity, which is vital for sustaining its long-term strategy.

However, it's important to note that the success of ONP-002 will be a key determinant for the company's future. Investors should be aware that pharmaceutical development is fraught with risks, including potential failures in clinical trials or delays in regulatory approvals.

Overall, this move reflects Oragenics' commitment to advancing its pipeline, but it also underscores the inherent risks and uncertainties typical in the pharmaceutical industry.

SARASOTA, Fla., June 25, 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 1,100,000 shares of its common stock (or pre-funded warrants in lieu thereof) at an offering price of $1.00 per share. The closing of the public offering is expected to occur on or about June 26, 2024, subject to the satisfaction of customary closing conditions.

The gross proceeds of the offering are anticipated to be approximately $1,100,000 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 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. 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 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

FAQ

What is Oragenics' public offering price per share?

Oragenics' public offering price is set at $1.00 per share.

How much does Oragenics aim to raise from the public offering?

Oragenics aims to raise approximately $1.1 million from the public offering.

When is the closing date for Oragenics' public offering?

The closing date for the offering is expected on or about June 26, 2024.

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

The net proceeds will be used to fund the continued development of the ONP-002 product candidate and for general corporate purposes and working capital.

Who is the placement agent for Oragenics' public offering?

Dawson James Securities is acting as the sole placement agent for the offering.