PRINCETON, NJ – Soligenix, Inc. (NASDAQ:SNGX), a biopharmaceutical company, announced today that it has entered into an agreement that could provide the company with up to approximately $4.2 million in funding. The deal involves the exercise of existing warrants for cash and the issuance of additional warrants to the holders.
On Monday, Soligenix entered into a warrant inducement agreement with certain holders of its existing warrants. These holders have agreed to exercise their warrants to purchase up to 703,125 shares of the company's common stock at $6.00 per share, potentially resulting in gross proceeds of around $4.2 million, excluding financial advisory fees and other costs.
In return for the holders' commitment, Soligenix will issue new unregistered warrants that allow the purchase of additional shares equal to 150% of the shares acquired through the exercised existing warrants. These new warrants are immediately exercisable and valid for five years.
Soligenix has also committed to filing a registration statement by July 25, 2024, to enable the resale of the new warrant shares and to keep this registration statement effective until all new warrants and shares have been exercised or sold.
The anticipated proceeds from this transaction are earmarked for clinical development of Soligenix's product candidates, working capital, and other general corporate purposes. The new warrants will have an exercise price of $6.00 per share, subject to standard adjustments for stock-related events.
The company has engaged A.G.P./Alliance Global Partners (NYSE:GLP) to provide financial advisory services for the transaction, with an advisory fee set at 6.0% of the gross proceeds from the exercise of the existing warrants, along with reimbursement of up to $40,000 for legal expenses.
This transaction, which involves the sale of securities not registered under the Securities Act of 1933, relies on exemptions from the registration requirements. The securities may not be sold in the United States without registration or an applicable exemption.
The information in this article is based on a press release statement.
In other recent news, Soligenix Inc. reported positive outcomes from a clinical study comparing its product HyBryte™ against Valchlor® in treating cutaneous T-cell lymphoma (CTCL). The study demonstrated that 60% of patients treated with HyBryte™ achieved the success criteria, compared to 20% of those treated with Valchlor®. HyBryte™ also had a more favorable safety profile. The company is preparing for a confirmatory Phase 3 study, FLASH2, later this year.
Moreover, Soligenix has announced a 1-for-16 reverse stock split, reducing the number of outstanding shares from approximately 15.8 million to around 987,490. The decision was made during a stockholders' meeting, with the adjustment set to take effect at the market's close.
Soligenix has received orphan drug designations from the U.S. Food and Drug Administration (FDA) for its MarVax™ and SuVax™ vaccines.
The company has set the terms for its latest public offering aiming to raise around $4.75 million in gross proceeds. The funds will be allocated to advance its research and development projects, particularly those aimed at commercializing its product candidates. These are recent developments that highlight Soligenix's ongoing efforts to expand its operations and further its research in rare diseases.
InvestingPro Insights
Amidst the recent developments with Soligenix, Inc. (NASDAQ:SNGX), investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Soligenix holds a market capitalization of $13.39 million, reflecting the scale of the company within the pharmaceutical industry. Notably, the company's price to book ratio stands at 2.57 as of the last twelve months, suggesting how the market values the company relative to its book value.
With revenue showing a decline of over 31% in the same period, the financial trajectory of Soligenix appears challenging. The company's gross profit margin is reported at 9.46%, indicating the percentage of revenue that exceeds the cost of goods sold—a critical factor for investors assessing the company's efficiency.
Moreover, the stock has experienced significant volatility, with a 1-month price total return of -47.09% and a 6-month price total return of -85.63%, emphasizing the fluctuating investor sentiment and market conditions impacting Soligenix.
For those considering an investment in Soligenix, InvestingPro Tips highlight that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility. The Relative Strength Index (RSI) suggests the stock is in oversold territory, potentially signaling a buying opportunity for contrarian investors. It is important to note that analysts do not anticipate the company to be profitable this year, and a sales decline is expected in the current year, which should be factored into investment decisions.
For a deeper analysis and additional InvestingPro Tips on Soligenix, including 14 more tips that could guide investment strategies, visit https://www.investing.com/pro/SNGX. To access these insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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