Virios Therapeutics Announces Proposed Public Offering of Common Stock to Commence Preparations for Planned IMC-2 Long-COVID Phase 2b Study
Virios Therapeutics (Nasdaq: VIRI), a biotechnology company focused on novel antiviral therapies, announced its intention to offer and sell up to $2.1 million in common stock.
Proceeds are earmarked for preparatory activities for the planned IMC-2 Long-COVID Phase 2b study and general corporate purposes.
The offering, subject to market conditions, is managed by Maxim Group as the sole placement agent.
The public offering will be made via an effective shelf registration statement filed with the SEC.
- Virios Therapeutics aims to raise $2.1 million through a public offering of common stock.
- Proceeds will fund preparatory activities for the IMC-2 Long-COVID Phase 2b study.
- Maxim Group is acting as the sole placement agent, potentially ensuring professional execution of the offering.
- The offering is conducted under an effective shelf registration statement, ensuring regulatory compliance.
- The offering is subject to market conditions, creating uncertainty about its completion and terms.
- Issuing new shares may lead to shareholder dilution.
- No assurance is provided about the successful completion of the public offering.
Insights
Virios Therapeutics’ decision to offer and sell up to
From a financial perspective, the company’s reliance on public offerings can be seen as both a positive and a negative indicator. On the one hand, the willingness to raise funds suggests a commitment to advancing their research and development efforts, which could lead to future revenue streams if their therapies prove successful. On the other hand, frequent equity offerings can dilute existing shareholders' stakes and may signal that the company is facing cash flow challenges. Investors should pay close attention to the terms of the offering and the potential dilution of their shares.
The involvement of Maxim Group LLC as the sole placement agent also adds a layer of credibility to the offering, as they are a well-known firm in the financial sector. However, it’s essential for investors to consider the broader market conditions which can affect the success and pricing of the offering. The shelf registration on Form S-3 provides a streamlined process for the company to raise funds, but the actual market reception will depend on investor confidence in Virios Therapeutics' long-term prospects.
The intention to allocate funds towards the IMC-2 Long-COVID Phase 2b study is noteworthy. Long-COVID remains an area with significant unmet medical need and successful advancement of this study could place Virios Therapeutics at the forefront of an emerging therapeutic area. The IMC-2 compound, which is being evaluated, will undergo rigorous testing to determine its efficacy and safety in treating Long-COVID symptoms.
Investors should understand that Phase 2b studies are critical as they often provide preliminary data on the drug’s effectiveness and help design pivotal Phase 3 trials. The success of this study could significantly de-risk the project, making Virios Therapeutics a potential candidate for partnerships or acquisitions.
However, it's important to note that clinical trials are fraught with risk and the success is never guaranteed. The allocation of proceeds to general corporate purposes also suggests that not all funds will be directly utilized for the clinical trial, which is a detail investors should consider.
ATLANTA, May 17, 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 that it intends to offer and sell up to
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, will form a part of the effective registration statement and will be available on the SEC’s website at www.sec.gov. When available, copies of the preliminary 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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