Virpax® Pharmaceuticals Announces Closing of $40 Million Public Offering of Common Stock

Rhea-AI Summary

Virpax Pharmaceuticals (NASDAQ:VRPX) has completed an underwritten public offering of 6,670,000 shares at $6.00 each, raising gross proceeds of $40,020,000. An option for underwriters to purchase an additional 1,000,500 shares is also available. The funds will support R&D for multiple product candidates, repay notes, pay deferred compensation to the CEO, and cover general corporate expenses. ThinkEquity served as the sole book-running manager for the offering.

Positive

• Raised $40,020,000 in gross proceeds to fund research and development.
• Focus on developing non-opioid pain management solutions.
• Funds allocated for multiple product candidates and corporate expenses.

Negative

• Potential dilution from offering and additional share purchase option.

BERWYN, Pa.--(BUSINESS WIRE)-- Virpax^® Pharmaceuticals Inc. (“Virpax” or the “Company”) (NASDAQ:VRPX), a company specializing in developing pharmaceutical products for pain management, today announced the closing of an underwritten public offering of 6,670,000 shares of its common stock at a public offering price of $6.00 per share, for gross proceeds of $40,020,000, before deducting underwriting discounts and offering expenses. In addition, Virpax has granted the underwriters a 45-day option to purchase up to an additional 1,000,500 shares of common stock to cover over-allotments at the public offering price, less the underwriting discount.

Virpax intends to use the net proceeds from the offering to fund research and development of the Epoladerm, Probudur, Envelta and AnQlar indications and other development programs, pay fees and expenses associated with the offering, repay outstanding promissory notes issued to the Company’s Chief Executive Officer and pay deferred compensation due to the Company’s Chief Executive Officer, and for working capital and other general corporate purposes.

ThinkEquity acted as sole book-running manager for the offering.

A registration statement on Form S-1 (File No. 333-259421) was filed with the Securities and Exchange Commission (“SEC”), which became effective on September 14, 2021, relating to the shares of common stock being offered. This offering is being made only by means of a prospectus. Copies of the final prospectus may be obtained from ThinkEquity, 17 State Street, 22nd Floor, New York, New York 10004, by telephone at (877) 436-3673, by email at prospectus@think-equity.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Virpax Pharmaceuticals

Virpax is a preclinical stage biopharmaceutical company focused on becoming a global leader in pain management by developing and delivering innovative non-opioid and non-addictive pharmaceutical products using new drug delivery systems and technology. Virpax is developing branded pharmaceutical product candidates for pain management by using advanced technology in an effort to enhance patients’ quality of life. For more information, please visit www.virpaxpharma.com.

Forward Looking Statements

This press release contains certain forward-looking statements, including those relating to the regarding the anticipated timing of completion of the offering and other statements that are predictive in nature. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. 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. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this presentation. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's filings with the Securities and Exchange Commission, including its registration statement on Form S-1, as amended from time to time, under the caption "Risk Factors."

View source version on businesswire.com: https://www.businesswire.com/news/home/20210916005175/en/

Christopher M. Chipman, CPA

Chief Financial Officer

cchipman@virpaxpharma.com

610-727-4597

Or

Betsy Brod

Affinity Growth Advisors

betsy.brod@affinitygrowth.com

212-661-2231

Source: Virpax Pharmaceuticals Inc.

FAQ

What was the total amount raised by Virpax Pharmaceuticals in the recent offering?

Virpax Pharmaceuticals raised a total of $40,020,000 in gross proceeds from the offering.

How many shares did Virpax Pharmaceuticals offer in their public offering?

Virpax Pharmaceuticals offered 6,670,000 shares in their public offering.

What are the intended uses of the proceeds from Virpax's offering?

The proceeds will fund R&D for various product candidates, repay notes, and cover general corporate expenses.

What is the public offering price per share for Virpax Pharmaceuticals?

The public offering price for Virpax Pharmaceuticals was $6.00 per share.

Who acted as the book-running manager for the Virpax Pharmaceuticals offering?

ThinkEquity acted as the sole book-running manager for the offering.