Rani Therapeutics Announces Termination of Public Offering of Class A Common Stock

Rhea-AI Summary

Rani Therapeutics announced the termination of its previously announced underwritten public offering of Class A common stock, as management assessed the current market conditions as unfavorable. Consequently, no shares will be sold in this offering. The company asserted it has adequate capital to fund operations into mid-2024. The offering was to be conducted under an effective shelf registration statement. Forward-looking statements regarding cash reserves highlight potential risks and uncertainties affecting future results.

Positive

• Sufficient capital to fund operations into mid-2024.

Negative

• Termination of the public offering indicates unfavorable market conditions.
• Risk of cash reserves may affect future operations.

SAN JOSE, Calif., Aug. 11, 2022 (GLOBE NEWSWIRE) -- Rani Therapeutics Holdings, Inc. (“Rani Therapeutics” or the “Company”) (Nasdaq: RANI), a clinical-stage biotherapeutics company focused on the oral delivery of biologics and drugs, today announced that it has terminated the underwritten public offering of its Class A common stock previously announced on August 10, 2022. The termination results from an assessment by the Company's management that current market conditions are not conducive for an offering on terms that would be in the best interests of the Company's stockholders. As a result of such termination, no shares of Class A common stock will be sold pursuant to the offering. The Company believes it has sufficient capital and financial flexibility to continue to fund its ongoing operations into mid-2024.

The offering was being made pursuant to a shelf registration statement on Form S-3 (File No. 333-266444) filed with the Securities and Exchange Commission (“SEC”), which was declared effective by the SEC on August 10, 2022. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, the sufficiency of Rani’s cash reserves. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon Rani’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with Rani’s business in general, the impact of the COVID-19 pandemic, and the other risks described in Rani’s filings with the Securities and Exchange Commission, including Rani’s annual report on Form 10-K for the year ended December 31, 2021 and subsequent filings and reports by Rani. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Rani undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Investor Contact:

investors@ranitherapeutics.com

Media Contact:

media@ranitherapeutics.com

 

FAQ

Why did Rani Therapeutics terminate its stock offering?

Rani Therapeutics terminated its stock offering due to unfavorable current market conditions assessed by management.

What is the impact of the terminated offering on Rani Therapeutics (RANI)?

The termination means no shares will be sold, which could affect investor sentiment but the company maintains sufficient capital to fund its operations into mid-2024.

How long can Rani Therapeutics sustain its operations?

Rani Therapeutics believes it has enough capital to sustain its operations until mid-2024.

What were the terms of the previously announced offering by Rani Therapeutics?

The offering was made under an effective shelf registration statement, but specific terms were not disclosed before its termination.