Virios Therapeutics Announces Closing of $1.7 Million Public Offering of Common Stock to Commence Preparations for Planned IMC-2 Long-COVID Phase 2b Study
Virios Therapeutics (Nasdaq: VIRI), a biotechnology company developing antiviral treatments for chronic diseases like fibromyalgia and Long-COVID, announced the closure of a $1.7 million public offering. The company sold 8.5 million shares at $0.20 each. The funds will support the IMC-2 Long-COVID Phase 2b study preparations and general corporate needs. Maxim Group was the sole placement agent. The offering was conducted under an effective shelf registration statement filed with the SEC.
This press release does not constitute a sales offer or solicitation in any jurisdiction where such activities are not legally sanctioned.
- Raised $1.7 million in gross proceeds.
- Funds allocated for IMC-2 Long-COVID Phase 2b study preparation.
- Maxim Group acted as sole placement agent, ensuring best efforts for the offering.
- Conducted under an effective shelf registration statement filed with SEC, ensuring regulatory compliance.
- Public offering at $0.20 per share may indicate low market valuation.
- Offering expenses and placement agent fees will reduce net proceeds.
- Company depends on external funding, indicating potential cash flow issues.
The recent public offering by Virios Therapeutics to raise
Given the offering price of
However, investors should be cautious of the dilution effect on existing shares and the impact on share price. With 8,500,000 new shares issued, the dilution is non-trivial. In the short term, this could put downward pressure on the stock price. Long-term success will depend on the outcomes of the clinical trials and the company's ability to manage its cash burn rate.
Virios Therapeutics' focus on advancing antiviral therapies for chronic diseases, such as fibromyalgia and Long-COVID, is both timely and relevant. The upcoming IMC-2 Phase 2b study is particularly significant given the rising interest and need for effective Long-COVID treatments. This phase of the study will play a important role in determining the safety and efficacy of IMC-2 in treating Long-COVID, a condition that has left many patients with persistent symptoms post-infection.
It's important to note that Phase 2b studies are typically larger and more rigorous than earlier phase trials. They are designed to provide preliminary evidence of efficacy while continuing to monitor safety. The transition to this phase indicates that preliminary data might have shown promise, warranting further investigation. Investors should be aware that success in Phase 2b could pave the way for larger Phase 3 trials, which are critical for FDA approval and eventual market entry.
However, clinical trials carry inherent risks and outcomes are uncertain. Failure to meet safety or efficacy endpoints could have significant negative implications for the company. Stakeholders should remain informed about the trial's progress and interim results, which will be key indicators of the company's future trajectory.
ATLANTA, May 22, 2024 (GLOBE NEWSWIRE) -- Virios Therapeutics, Inc. (Nasdaq: VIRI) (the “Company” or “Virios Therapeutics”), a development-stage biotechnology company focused on advancing novel antiviral therapies to treat debilitating chronic diseases, including fibromyalgia (“FM”) and Long-COVID (“LC”), today announced the closing of its previously announced public offering of 8,500,000 shares of its common stock at a public offering price of
Maxim Group LLC acted as sole placement agent, on a reasonable best-efforts basis, for the offering.
The public offering was made pursuant to an effective shelf registration statement on Form S-3, (File No. 333-263700), previously filed with the U.S. Securities and Exchange Commission (SEC) on March 18, 2022, and declared effective on April 28, 2022. The securities were offered only by means of a prospectus. A final prospectus supplement and an accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the public offering may also be obtained by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Prospectus Department, or by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.
This press release does 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.
About Virios Therapeutics, Inc.
Virios Therapeutics (Nasdaq: VIRI) is a development-stage biotechnology company focused on advancing novel antiviral therapies to treat diseases associated with a viral triggered abnormal immune response such as fibromyalgia (“FM”) and Long-COVID (“LC”). Overactive immune response related to activation of tissue resident herpesvirus has been postulated to be a potential root cause of chronic illnesses such as FM, irritable bowel syndrome, LC, chronic fatigue syndrome and functional somatic syndromes, all of which are characterized by a waxing and waning manifestation of disease, often triggered by events which compromise the immune system. Our lead development candidates are novel, proprietary, fixed dose combinations of an antiviral compound and celecoxib designed to synergistically suppress herpesvirus replication, with the end goal of reducing virally promoted disease symptoms. IMC-1 (fixed dosage combination of famciclovir and celecoxib) has been granted fast track designation by the FDA.
For more information, please visit www.virios.com.
Forward Looking Statement
Statements in this press release contain “forward-looking statements,” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “suggest,” “target,” “aim,” “should,” "will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Virios Therapeutics’ current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict, including risks related to the completion, timing and results of current and future clinical studies relating to Virios Therapeutics’ product candidates. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Amended Annual Report on Form 10-K/A for the year ended December 31, 2023, filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Virios Therapeutics, Inc. undertakes no duty to update such information except as required under applicable law.
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