STONY BROOK, NY - Applied DNA Sciences, Inc. (NASDAQ:APDN), a biotechnology firm specializing in PCR-based DNA manufacturing and detection, disclosed today the pricing of its public offering, which is expected to generate approximately $12 million in gross proceeds. This amount is prior to the deduction of placement agent fees and other estimated company expenses.
The offering comprises 9,230,769 units, each containing either a share of common stock or a pre-funded warrant to purchase one, along with a Series A Warrant and a Series B Warrant to purchase additional common shares at an exercise price of $1.99 per share.
The Series A Warrants will expire five years following stockholder approval, while the Series B Warrants will expire after one year. Stockholder approval is also required before the warrants can be exercised.
Each unit with a common share is priced at $1.30, with the unit containing a pre-funded warrant priced one-tenth of a cent less. The anticipated closing date of the offering is May 29, 2024, subject to customary closing conditions.
Applied DNA plans to utilize the net proceeds to expand its Therapeutic DNA Production Services and MDx Testing Services. Funds may also be allocated towards research and development, capital expenditures, working capital, general and administrative expenses, or potential acquisitions that align with the company's business strategy. Still, Applied DNA currently has no commitments or agreements for such acquisitions or investments.
Craig-Hallum Capital Group is serving as the lead placement agent, with Laidlaw & Company (UK) Ltd. acting as the co-placement agent for the offering. The securities are offered pursuant to a registration statement filed with the SEC, which is now effective.
Applied DNA Sciences operates in three main business markets: enzymatic synthetic DNA production for nucleic acid-based therapeutics, DNA and RNA detection for molecular diagnostics, and DNA manufacturing and detection for supply chain security services.
This announcement is based on a press release statement and should not be considered an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
In light of Applied DNA Sciences, Inc.'s (NASDAQ:APDN) recent public offering announcement, investors may find the following insights from InvestingPro particularly informative. As of the last twelve months as of Q2 2024, the company holds a market capitalization of $5.76 million USD, reflecting the scale of the business in the biotechnology sector.
InvestingPro Data indicates that APDN is experiencing significant revenue contraction, with a -68.52% change in revenue during the last twelve months as of Q2 2024, and a more pronounced quarterly revenue decline of -78.91% in Q2 2024. This signals challenges in the company's top-line growth.
Despite the recent capital raise aimed at funding expansion and potential acquisitions, it is worth noting that analysts do not anticipate Applied DNA will be profitable this year, as reflected in the company's negative P/E Ratio of -0.12 and adjusted P/E Ratio of -0.79.
Moreover, the Relative Strength Index (RSI) suggests that the stock is currently in oversold territory. This could be a point of interest for potential investors looking for entry points, although InvestingPro Tips caution that the stock has fared poorly over the last month, with a 1-month price total return of -54.46% as of the same date.
The company's stock has taken a significant hit over the last six months, with a 6-month price total return of -88.92%. With these metrics in mind, investors should consider the company's short-term and long-term financial health and market performance.
For those seeking deeper analysis, InvestingPro offers additional tips, such as the company's cash burn rate and valuation implications regarding free cash flow yield. To access these insights and more, visit https://www.investing.com/pro/APDN. Plus, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the 14 additional InvestingPro Tips available for Applied DNA Sciences, Inc.
Investors should consider these data points in the context of the company's strategic initiatives, including the expansion of its Therapeutic DNA Production Services and MDx Testing Services, as they evaluate the potential risks and opportunities associated with the company's public offering and overall financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.