Virpax Pharmaceuticals, Inc. Announces Closing of $6.0 Million Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Virpax Pharmaceuticals (NASDAQ: VRPX) has announced the closing of a $6.0 million public offering of common stock and pre-funded warrants. The offering price was set at $0.20 per share (minus $0.00001 per pre-funded warrant). The proceeds will be used to fund clinical trial development for their product candidate Probudur, marketing and advertising services for financial community communications, working capital, and other general corporate purposes.

Spartan Capital Securities, served as the exclusive placement agent for the offering. The securities were offered through a registration statement on Form S-1, which was filed with the SEC on July 29, 2024, amended on January 15 and 17, 2025, and declared effective on January 27, 2025.

Positive

• Secured $6.0 million in new funding
• Proceeds will support Probudur clinical trial development
• Successfully completed public offering with institutional backing

Negative

• Offering price of $0.20 per share indicates low stock valuation
• Dilution of existing shareholders' equity
• Company still in preclinical stage with no revenue-generating products

Insights

Financial Analyst

The completion of Virpax's $6.0 million public offering represents a significant capital injection, though the pricing at $0.20 per share reflects challenging market conditions, trading at a 38% discount to current market price. This financing structure, combining common stock with pre-funded warrants, indicates sophisticated institutional interest while managing immediate dilution impacts.

The capital raise is strategically timed as Virpax prepares to advance Probudur into clinical trials - a important inflection point that typically demands substantial resources. For a preclinical company with a market cap of just $4.5 million, this financing provides essential runway, potentially funding operations for 12-18 months based on typical burn rates in early-stage pharmaceutical development.

Key considerations for investors include:

• The offering size exceeds the current market cap, suggesting significant dilution for existing shareholders
• The engagement of Spartan Capital as placement agent indicates institutional backing, potentially providing validation of the company's development strategy
• The allocation of proceeds to clinical trials and marketing activities suggests a dual focus on both technical advancement and market awareness
• The pre-funded warrant structure provides flexibility in managing share issuance timing while securing committed capital

While the offering terms reflect current market challenges, the successful close provides critical working capital for Virpax to advance its proprietary drug delivery platform across various pain indications, potentially creating value inflection points through clinical development milestones.

BERWYN, Pa.--(BUSINESS WIRE)-- Virpax Pharmaceuticals, Inc. (Nasdaq: VRPX) (“Virpax” or the “Company”), a preclinical-stage pharmaceutical company focused in novel and proprietary drug delivery systems across various pain indications, announced today the closing of its public offering of $6.0 million of shares of the Company’s common stock, par value $0.00001 per share, and pre-funded warrants to purchase shares of common stock at a public offering price of $0.20 per share (minus $0.00001 per pre-funded warrant). The Company intends to use the proceeds of the offering to fund its ongoing development activities for commencing clinical trial for its product candidate Probudur, marketing and advertising services to communicate information about the Company to the financial community, as well as for working capital and other general corporate purposes.

Spartan Capital Securities, LLC is acting as the exclusive placement agent in connection with the offering.

The securities described above are being offered pursuant to the Company’s registration statement on Form S-1, as amended (File No. 333-284089) (the “Registration Statement”), initially filed with the Securities and Exchange Commission (the “SEC”) on July 29, 2024, as amended on January 15, 2025 and January 17, 2025, and declared effective by the SEC on January 27, 2025. The offering is being made only by means of a prospectus which is a part of the Registration Statement. A final prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at https://www.sec.gov/. Copies of the final prospectus relating to this offering may be obtained from Spartan Capital Securities, LLC, at 45 Broadway, 19th Floor, New York, NY 10006.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, 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 Virpax

Virpax Pharmaceuticals, Inc. is a preclinical-stage pharmaceutical company focused on developing novel and proprietary drug delivery systems across various pain indications in order to enhance compliance and optimize each product candidate in our pipeline. Our drug-delivery systems and drug-releasing technologies being developed are focused on advancing non-opioid and non-addictive pain management treatments and treatments for central nervous system disorders to enhance patients’ quality of life. For more information, please visit https://www.virpaxpharma.com.

Virpax’s shares of common stock trade on the Nasdaq Capital Market under the symbol “VRPX”.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate," "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.

Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risk factors contained in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company's forward-looking statements occurs, the Company's business, financial condition and operating results may vary materially from those expressed in the Company's forward-looking statements.

Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250130154018/en/

For further information, please contact:

Investor Contact

info@virpaxpharma.com

Source: Virpax Pharmaceuticals, Inc.

FAQ

How much did Virpax Pharmaceuticals (VRPX) raise in its latest public offering?

Virpax Pharmaceuticals raised $6.0 million through a public offering of common stock and pre-funded warrants.

What is the offering price for VRPX's latest public offering?

The offering price was $0.20 per share, with pre-funded warrants priced at $0.20 minus $0.00001.

How will VRPX use the proceeds from its $6.0 million offering?

The proceeds will fund clinical trial development for Probudur, marketing and advertising services, working capital, and general corporate purposes.

When was VRPX's Form S-1 registration statement declared effective by the SEC?

The SEC declared VRPX's Form S-1 registration statement effective on January 27, 2025.

Who acted as the placement agent for VRPX's public offering?

Spartan Capital Securities, acted as the exclusive placement agent for the offering.