Palatin Announces Closing of $10 Million Registered Direct Offering
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Insights
The closing of Palatin Technologies' registered direct offering represents a significant capital infusion for the company, amounting to approximately $10 million before fees and expenses. This capital raise is a strategic move that can provide the company with the necessary resources to advance its pipeline of drugs targeting the melanocortin receptor system. The use of proceeds for general corporate purposes suggests flexibility in addressing various operational needs, which could include research and development, marketing, or scaling manufacturing capabilities.
Investors may view the issuance of warrants alongside common stock as a potential future dilutive event but also as a vote of confidence by warrant holders in the company's long-term prospects. The exercise price being set at the same level as the stock offering price indicates a current fair value perception of the company's stock. However, the impact on the stock's liquidity and volatility should be monitored as the warrants become exercisable six months post-closing.
Palatin's focus on developing first-in-class medicines in the field of melanocortin receptor modulation is indicative of the company's commitment to addressing unmet medical needs. The capital raised could signal to the market that Palatin is gearing up for significant operational activities, which may include advancing clinical trials or preparing for potential commercialization. The biopharmaceutical sector is highly competitive and timely access to capital is critical for companies like Palatin to maintain momentum in drug development and to secure a strategic position within the market.
It's also noteworthy that the offering was managed by H.C. Wainwright & Co., a respected firm in the industry, which could lend additional credibility to the offering and, by extension, to Palatin's market position. Investors and competitors alike will be watching closely to see how efficiently Palatin deploys this capital toward generating value.
The legal framework surrounding this transaction involves a shelf registration statement and a private placement of warrants. The shelf registration allows for a more expedited process of offering securities to the public, providing Palatin with the flexibility to time the market and access capital relatively quickly. The inclusion of a prospectus supplement provides transparency and is a regulatory requirement that ensures investors are well-informed about the terms of the offering.
On the other hand, the private placement of warrants under Section 4(a)(2) and Regulation D of the Securities Act allows for the sale of securities without a public offering, targeting accredited investors. This approach can be faster and less costly than a public offering but limits the pool of potential investors. The fact that these securities are not initially registered means that there are restrictions on their resale, which could influence their attractiveness to investors and the liquidity of these instruments in the secondary market.
H.C. Wainwright & Co. acted as exclusive placement agent for the offering.
The gross proceeds from the offering were approximately
The shares of common stock described above (excluding the warrants and the shares of common stock underlying the warrants) were offered by Palatin pursuant to a shelf registration statement on Form S-3 (File No. 333-262555) that was previously filed with the Securities and Exchange Commission ("SEC") on February 7, 2022, and subsequently declared effective on September 26, 2022. The shares of common stock issued in the registered direct offering were offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying base prospectus relating to, and describing the terms of, the registered direct offering was filed with the SEC and is available on the SEC's website at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying base prospectus relating to the registered direct offering may also be obtained by contacting H.C. Wainwright & Co., LLC, at 430 Park Ave.,
The warrants described above were issued in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and Regulation D promulgated thereunder and, along with the shares of common stock underlying such warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock, upon issuance, may not be offered or sold in
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Palatin
Palatin is a biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor systems, with targeted, receptor-specific product candidates for the treatment of diseases with significant unmet medical need and commercial potential. Palatin's strategy is to develop products and then form marketing collaborations with industry leaders to maximize their commercial potential. For additional information regarding Palatin, please visit Palatin's website at www.Palatin.com and follow Palatin on Twitter at @PalatinTech.
Forward-looking Statements
Statements in this press release that are not historical facts, including statements related to the intended use of proceeds from the offering, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Securities Litigation Reform Act of 1995. Palatin intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements reflect the Company's current views with respect to future events and are based on assumptions and subject to known and unknown risks and uncertainties, which change over time, and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, without limitation, market and other conditions, the anticipated use of proceeds from the offering; results of clinical trials; regulatory actions by the FDA and other regulatory and the need for regulatory approvals; Palatin's ability to fund development of its technology and establish and successfully complete clinical trials; the length of time and cost required to complete clinical trials and submit applications for regulatory approvals; products developed by competing pharmaceutical, biopharmaceutical and biotechnology companies; commercial acceptance of Palatin's products; and other factors discussed in Palatin's periodic filings with the SEC. All forward-looking statements included in this press release are made only as of the date of this press release. The Company assumes no obligation to update any written or oral forward-looking statement, whether as a result of new information, future events or otherwise unless required by law.
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SOURCE Palatin Technologies, Inc.
FAQ
How many shares were offered in the direct offering by Palatin Technologies, Inc.?
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Which company acted as the exclusive placement agent for the offering?
Where can the final prospectus supplement and accompanying base prospectus be obtained?
Under which section of the Securities Act were the warrants issued?
