Virpax Pharmaceuticals, Inc. Announces Pricing of $6 Million Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Virpax Pharmaceuticals (Nasdaq: VRPX) has announced the pricing of a $6 million public offering of common stock and pre-funded warrants. The offering includes shares priced at $0.20 and pre-funded warrants at $0.19999 per share.

The proceeds will be used to fund ongoing development activities for the clinical trial of Probudur, marketing and advertising services for financial community communications, working capital, and general corporate purposes. Spartan Capital Securities is serving as the exclusive placement agent.

The offering is expected to close on January 29, 2025, subject to customary conditions, and is being conducted under the Company's Form S-1 registration statement, which was declared effective by the SEC on January 27, 2025.

Positive

• Secured $6 million in new funding through public offering
• Proceeds will support clinical trial advancement for Probudur product candidate

Negative

• Significant dilution for existing shareholders through new stock issuance
• Low offering price of $0.20 per share indicates weak market position
• Pre-clinical stage company with no revenue-generating products

Insights

Financial Analyst

This $6 million public offering marks a important yet challenging capital raise for Virpax Pharmaceuticals. The offering price of $0.20 per share represents a significant discount to the current market price of $0.278, indicating substantial pressure on the stock and reflecting the challenging market conditions for small-cap biotech companies.

The structure of the offering, including pre-funded warrants priced at a $0.00001 discount to the share price, suggests a strategic approach to accommodate investors who may face restrictions on direct equity ownership while maximizing immediate capital access. However, this financing mechanism will result in notable dilution for existing shareholders.

The allocation of proceeds reveals strategic priorities:

• Advancing Probudur into clinical trials, marking a critical progression in the company's pipeline
• Investment in marketing and financial community outreach, suggesting a push to improve market visibility
• Working capital enhancement, important for maintaining operational flexibility

With a current market cap of approximately $4.2 million, this offering represents significant dilution but provides essential capital for near-term operational objectives. The involvement of Spartan Capital Securities as the exclusive placement agent indicates institutional support, though the pricing terms reflect the current risk assessment of pre-clinical stage pharmaceutical companies in the current market environment.

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 pricing of its public offering of $0.20 of shares of the Company’s common stock, par value 0.00001 per share, and/or pre-funded warrants to purchase shares of common stock at a public offering price of $0.19999 per share (minus $0.00001 per pre-funded warrant). The Company intends to use the proceeds of the offering to fund our ongoing development activities for commencing clinical trial for our 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 offering is expected to close on January 29, 2025, subject to customary closing conditions. The offering is being conducted pursuant to the Company’s registration statement on Form S-1, as amended (File No. 333-284089), initially filed with the Securities and Exchange Commission (the “SEC”) on December 30, 2024, as amended on January 15, 2025 and January 17, 2025, and subsequently declared effective by the SEC on January 27, 2025. The offering is being made only by means of a prospectus. A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at https://www.sec.gov/. Copies of the final prospectus relating to this offering, when available, 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/20250128517867/en/

Investor Contact

info@virpaxpharma.com

Source: Virpax Pharmaceuticals, Inc.

FAQ

What is the price of VRPX's public offering announced in January 2025?

Virpax Pharmaceuticals announced a public offering priced at $0.20 per share of common stock and $0.19999 for pre-funded warrants.

How much money is Virpax (VRPX) raising in its January 2025 offering?

Virpax Pharmaceuticals is raising $6 million through its public offering of common stock and pre-funded warrants.

What will VRPX use the proceeds from its $6 million offering for?

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

When is VRPX's January 2025 public offering expected to close?

The public offering is expected to close on January 29, 2025, subject to customary closing conditions.

Who is the placement agent for VRPX's January 2025 public offering?

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