Virios Therapeutics Announces Pricing of $1.7 Million Public Offering of Common Stock to Commence Preparations for Planned IMC-2 Long-COVID Phase 2b Study
Virios Therapeutics announced the pricing of a $1.7 million public offering to fund its IMC-2 Long-COVID Phase 2b study.
The company will offer 8,500,000 shares at $0.20 per share, with the offering expected to close on May 22, 2024.
Maxim Group is acting as the sole placement agent. Gross proceeds are expected to be $1.7 million before deducting fees and expenses.
Net proceeds will be used for the Phase 2b study and general corporate purposes. The offering is made under an effective shelf registration statement filed with the SEC.
- Raised $1.7 million to fund the IMC-2 Long-COVID Phase 2b study.
- Public offering priced at $0.20 per share, providing transparency to investors.
- Maxim Group acting as sole placement agent, indicating professional oversight.
- Use of funds includes preparatory activities for an important Phase 2b study, indicating ongoing research and development.
- Potential dilution of shares due to the issuance of 8,500,000 new shares.
- Gross proceeds of $1.7 million come before deducting fees and expenses, reducing net proceeds.
- Public offering price of $0.20 per share may indicate undervaluation of stock.
Insights
Virios Therapeutics has announced a public offering of
The capital raised is relatively modest, highlighting potential constraints in financial resources. This step indicates a reliance on external funding, possibly suggesting limited internal cash flow. For retail investors, the near-term impact might include stock price volatility due to market reactions to the dilution and the speculative nature of clinical studies.
On a positive note, the focus on Long-COVID treatment taps into a high-need market, which if successful, can offer substantial returns. Investors must weigh the high risk associated with biotechnology development against the potential high reward.
Funding the IMC-2 Long-COVID Phase 2b study is a significant milestone for Virios Therapeutics. Long-COVID remains a substantial and emerging health challenge and successful development of a treatment could position the company favorably in a high-demand market. However, clinical trials are inherently risky and expensive, with no guaranteed outcomes.
The Phase 2b study is critical for establishing both the efficacy and safety of the IMC-2 treatment. The previous phases’ data would provide insights into expected outcomes, but until substantial and verifiable results are obtained, the stock remains speculative. For retail investors, understanding the phases of clinical trials is crucial. Phase 2b trials focus on efficacy and side effects in a larger group of people, which is a step closer to potential market approval but still not definitive.
Overall, investors should monitor trial progress closely, as positive results could significantly uplift stock value, while negative outcomes could deter investment.
This public offering reflects Virios Therapeutics' strategic approach to secure funding via equity markets. The successful execution of the planned IMC-2 Long-COVID Phase 2b study can potentially lead to substantial market penetration, given the unmet medical needs for Long-COVID patients. From a market perspective, this move shows proactive effort to address an urgent health issue, which can enhance the company’s reputation and investor interest.
However, it's vital to note the potential market saturation and competition. Numerous companies are actively pursuing treatments for Long-COVID. Thus, Virios Therapeutics must not only achieve clinical success but also distinguish its treatment in terms of efficacy and safety profile to gain a competitive edge.
Retail investors should be aware of the broader market trends and competitor activities, which can influence the company’s stock performance. Market differentiation and strategic partnerships can play important roles in the success of the product post-approval.
ATLANTA, May 19, 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 pricing of its previously announced public offering of 8,500,000 shares of its common stock at a public offering price of
Maxim Group LLC is acting as sole placement agent, on a reasonable best-efforts basis, for the proposed offering.
The public offering is being 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 may be offered only by means of a prospectus. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the public offering have been filed with the SEC. A final prospectus supplement and an accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. When available, 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.
Contact:
FAQ
What is the purpose of Virios Therapeutics' $1.7 million public offering?
How many shares are being offered in Virios Therapeutics' public offering?
What is the price per share in the Virios Therapeutics public offering?
When is the closing date for Virios Therapeutics' public offering?
Who is acting as the placement agent for Virios Therapeutics' public offering?
What will Virios Therapeutics use the net proceeds from the public offering for?
