Oragenics, Inc. Announces Proposed Public Offering
Oragenics, Inc. (NYSE: OGEN), a company focused on intranasal pharmaceuticals for neurological disorders, announced a proposed public offering of its common stock or pre-funded warrants.
All securities in the offering will be sold by Oragenics. The proceeds will fund the development of its ONP-002 product candidate and cover general corporate expenses. Dawson James Securities, Inc. will serve as the sole placement agent.
The offering is being made under a shelf registration statement filed with the SEC. The terms will be detailed in a prospectus supplement available on the SEC's website.
The completion of the offering is subject to market conditions, and there's no assurance on its size or terms.
- Potential new funds to support the development of ONP-002.
- Dawson James Securities, Inc. as sole placement agent, indicating professional management of the offering.
- Uncertain market conditions may affect the completion and terms of the offering.
- Potential shareholder dilution from the issuance of new shares.
Insights
Oragenics' announcement of a proposed public offering is a significant development for the company. This move aims to raise capital presumably to further the development of ONP-002, an intranasal pharmaceutical for treating neurological disorders. The direct impact of this funding effort hinges on several factors, including market conditions and investor reception. It's important for investors to understand that such offerings can lead to share dilution, which means their percentage ownership in the company may decrease.
However, the raised capital could also accelerate the company's R&D efforts, particularly for ONP-002, potentially leading to future profitability if the product successfully reaches the market. Considering the pharmaceutical industry, it’s important to note the lifecycle of drug development is lengthy and capital-intensive, often requiring substantial investment before any returns are realized.
Investors should monitor the terms of the offering and more importantly, how effectively the company utilizes the raised funds. Mismanagement or delays in the development of ONP-002 could adversely affect the stock price. Conversely, any positive progress reports regarding clinical trials or regulatory approvals can bolster investor confidence and drive the stock price up.
This public offering signals a strategic decision by Oragenics to strengthen their financial position. For retail investors, it's pertinent to understand that the company's focus on ONP-002, a treatment for neurological disorders, places them in a competitive yet high-potential market. The timing of the offering amidst ongoing development of this product could be seen as a vote of confidence in its potential.
Market conditions will play a significant role in the success of this offering. The broader sentiment in the biotechnology and pharmaceutical sectors, investor appetite for risk and overall market stability will influence the offering's reception. A well-received offering can provide significant liquidity and support for Oragenics' ambitious projects, while a poorly received one might indicate broader investor skepticism about the company's prospects.
Investors should also consider the role of the sole placement agent, Dawson James Securities. Their reputation and network can affect the success of the offering. Additionally, the utilization of a shelf registration statement allows Oragenics flexibility in capital raising, which can be advantageous in a volatile market by enabling quicker access to funding when market conditions are favorable.
From a legal perspective, the use of a shelf registration statement (Form S-3) is notable. This instrument allows Oragenics to issue new securities quickly and efficiently, as it has already met the SEC's disclosure requirements. This move can be strategically advantageous, giving the company the flexibility to access capital as needed without undergoing lengthy approval processes.
Investors should be aware of the specific risks disclosed in the prospectus supplement and accompanying prospectus. These documents will outline the potential legal and regulatory challenges that could impact Oragenics' operations and the development timeline for ONP-002. It’s essential to read these documents thoroughly to understand the company's obligations, risk factors and the legal framework within which it operates.
The fact that this offering is contingent upon market conditions also introduces a layer of uncertainty. Legal frameworks ensure transparency and protect investor interests, but they also mean that unforeseen legal challenges or market volatility could delay or alter the offering. Investors should weigh these factors carefully when considering participation in this public offering.
SARASOTA, Fla., June 24, 2024 (GLOBE NEWSWIRE) -- Oragenics, Inc. (NYSE: OGEN) (“Oragenics” or the “Company”), a company focused on developing unique, intranasal pharmaceuticals for the treatment of neurological disorders, today announced that it intends to offer and sell shares of its common stock (or pre-funded warrants in lieu thereof). All of the securities to be sold in the offering are to be offered by Oragenics. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
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 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 prospectus supplement and accompanying prospectus. The preliminary prospectus supplement and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Electronic copies of the preliminary prospectus supplement may be obtained, when available, 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 prospectus supplement and the accompanying prospectus and the other documents that Oragenics has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about Oragenics and such 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
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