Virpax Pharmaceuticals Secures $2.5 Million Loan Financing and an Agreement with an Institutional Investor to Negotiate Additional Funding
Virpax Pharmaceuticals announced securing a $2.5 million loan from an institutional investor, which facilitated the final payment of its litigation settlement. This loan agreement includes negotiating additional funding to support the development of non-addictive pain management and CNS disorder products.
The company's Board of Directors has been reorganized, reducing its members from eight to seven. Four new members—Judy Su, Gary Herman, Jatinder Dhaliwal, and Katharyn Field—have been appointed, while five existing members have resigned.
CEO Gerald Bruce emphasized that this funding will provide the flexibility needed to advance their programs, with the goal of beginning first-in-human trials in 2025. The announcement follows high interest in Virpax's asset portfolio at the recent BIO meeting in San Diego.
- Secured $2.5 million loan financing, aiding in finalizing litigation settlement.
- Agreement to negotiate additional funding, providing financial flexibility.
- Reorganization of the Board, infusing new expertise and vision.
- High level of interest in Virpax's asset portfolio at BIO meeting.
- Significant turnover in Board of Directors with five members resigning.
Insights
Securing
However, the reliance on an institutional investor for further funding highlights potential cash flow concerns. Investors should note that while the loan provides short-term relief, the company's ability to secure additional funding is important for ongoing operations and future growth. The negotiation of additional funding will be a key factor to watch, as it will determine Virpax's ability to sustain and expand its pipeline.
From a financial perspective, the reorganization of the Board might bring new strategic directions, but it also suggests internal shifts that could either stabilize or disrupt current projects. The market will likely respond to how the new Board members steer the company, especially in terms of financial strategy and investor relations.
The loan financing and subsequent board reorganization reflect Virpax’s ongoing efforts to secure its position in the pharmaceutical market, particularly in non-addictive pain management and CNS disorders. The mention of high interest at the BIO meeting indicates a market validation of their portfolio, which is a positive sign for future partnerships and investments.
The Board restructuring, with the addition of members with diverse expertise in pharmaceuticals, investment and strategy, could potentially bring new insights and directions to Virpax’s market approach. This diversity could help the company navigate the complex pharmaceutical landscape more effectively.
Investors should be aware that the promise of first-in-human trials starting in 2025 sets a long-term horizon. This timeline needs to be balanced against the company’s current financial health and ability to sustain its R&D efforts. The success of these trials will be pivotal for Virpax’s market positioning and valuation.
The use of the loan to settle litigation is a prudent move as it eliminates a legal overhang that could negatively impact investor confidence. Settling legal issues promptly can help Virpax focus on its core business operations without the distraction of ongoing legal battles.
The fact that the institutional investor now plays a significant role in selecting new Board members can be seen as both a stabilizing influence and a potential shift in company governance. The new Board members' backgrounds suggest a focus on compliance, strategic growth and navigating complex regulatory environments, which are important for a pharmaceutical company aiming to innovate in areas like non-addictive pain management.
Future investors should monitor how these changes in governance impact Virpax’s strategic decisions, especially with regards to compliance with FDA regulations and other legal requirements in the pharmaceutical industry.
--Announces Reorganization of Board of Directors--
“This loan by the institutional investor, combined with an agreement to negotiate additional funding, will allow us to continue fulfilling our mission to develop non-addictive pain drugs as well as other CNS product candidates with high unmet medical need,” stated Gerald Bruce, CEO of Virpax Pharmaceuticals. “We believe we have a valuable portfolio of assets which was confirmed to us by the high level of interest we received at the recent BIO meeting in
Additionally, Virpax announced the changes to its Board of Directors with the appointments of Ms. Judy Su, Mr. Gary Herman, Mr. Jatinder Dhaliwal and Ms. Katharyn Field. Resignations from Virpax’s Board were tendered effective upon consummation of the financing by Dr. Jeffrey Gudin, Dr. Thanigavelan Jambulingam, Mr. Michael Dubin, Mr. Jerrold Sendrow and Dr. Barbara
“We are excited to welcome our new Board members whom we anticipate will bring expertise and fresh vision to assist us as we move into our next stage of development. We expect to begin first-in-human trials in 2025,” continued Mr. Bruce.
Ms. Judy Su was lead pharmacist at a national drug store for six years and has knowledge and experience of large-scale retail distribution of scheduled drugs and medications. Currently, Ms. Su works as a pharmacist in the public sector. She has years of experience serving as an independent director for multiple publicly traded companies listed in
Mr. Gary Herman is a seasoned investor. From 2006 until 2021, he co-managed Strategic Turnaround Equity Partners, LP (Cayman), and from 2005 until 2020 he was affiliated with Arcadia Securities LLC. Gary’s expertise extended to his role as a managing member of Abacoa Capital Management, LLC from January 2011 until August 2013, where his focus centered on the Global-Macro investment strategy. His background also includes tenure as an investment banker at Burnham Securities, Inc., a managing partner of Kingshill Group, Inc., and as a director for various public company boards. Mr. Herman received a B.S. in Political Science from the University at
Mr. Jatinder (Jay) Dhaliwal is a registered pharmacist and has served as CEO and director of multiple publicly traded companies listed on Canadian (CSE, TSX) and American (Nasdaq) exchanges. Mr. Dhaliwal is currently a director of a Nasdaq listed leading seed to patient cannabis producer in
Ms. Katharyn (Katie) Field’s background includes positions spanning both the private and public sectors and brings a wealth of experience and expertise in strategy consulting and executive leadership. Ms. Field is currently the CEO and Chairman of Halo Collective Inc., an Executive Director at Akanda Corporation, and the Chairperson of Aerwins Technology. She has held prominent positions at renowned organizations including in the White House in the office of the public liaison, the Brookings Institution as a manager of operations, and Bain & Company as a consultant. In 2014, Ms. Field entered the cannabis industry working with one of the original vertically integrated licensed medical marijuana treatment centers in
“We are grateful to the outgoing Board members and thank them for their support and contributions,” concluded Mr. Bruce.
About Virpax Pharmaceuticals
Virpax is developing branded, non-addictive pain management products candidates using its proprietary technologies to optimize and target drug delivery. Virpax is initially seeking FDA approval for two prescription drug candidates that employ two different patented drug delivery platforms. Probudur™ is a single injection liposomal bupivacaine formulation being developed to manage post-operative pain and Envelta™ is an intranasal molecular envelope enkephalin formulation being developed to manage severe pain, including post cancer pain. Virpax is also using its intranasal Molecular Envelope Technology (MET) to develop one other prescription product candidate, NobrXiol™, which is being developed for the nasal delivery of a pharmaceutical-grade cannabidiol (CBD) for the management of rare pediatric epilepsy. Virpax has competitive cooperative research and development agreements (CRADAs) for two of its prescription drug candidates, one with the National Institutes of Health (NIH) and one with the Department of Defense (DOD). Virpax is also seeking approval of two nonprescription product candidates: AnQlar, which is being developed to inhibit viral replication caused by influenza or SARS-CoV-2, and Epoladerm™, which is a topical diclofenac spray film formulation being developed to manage pain associated with osteoarthritis. For more information, please visit virpaxpharma.com and follow us on Twitter, LinkedIn and YouTube.
Forward-Looking Statements
This press release contains certain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended, including those described below. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management's current beliefs and assumptions.
These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential,” "predict," "project," "should," "would" and similar expressions and the negatives of those terms and include statements regarding an agreement to negotiate additional funding, allowing the Company to continue fulfilling its mission to develop non-addictive pain drugs as well as other CNS product candidates with high unmet medical need; the portfolio of assets which being valuable, the new funding relationship giving the Company confidence and flexibility to fund its programs moving forward, the new Board members bringing expertise and fresh vision to assist the Company as it moves into its next stage of development, and beginning the first-in-human trials in 2025. These statements relate to future events and involve known and unknown risks, uncertainties, and other factors, including the contributions to be derived from the new board members, the ability to raise future funding sufficient to enable the Company to continue to fulfill its mission, fund its programs and begin first-in-human trials in 2025 and other factors listed under "Risk Factors" in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q that the Company has filed with the
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Source: Virpax Pharmaceuticals, Inc.
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