PRINCETON, N.J. - Soligenix, Inc. (NASDAQ: NASDAQ:SNGX), a biopharmaceutical company dedicated to developing treatments for rare diseases, has announced the terms for its latest public offering. The company plans to offer approximately 11.88 million shares, including warrants to purchase additional shares, aiming to raise around $4.75 million in gross proceeds.
The combined public offering price is set at $0.40 per share and accompanying warrant. Each warrant, also priced at $0.40, is immediately exercisable and set to expire five years post-issuance. The expected closing date of the offering is on or about April 22, 2024, contingent upon meeting customary closing conditions.
Soligenix intends to allocate the net proceeds from this offering to advance its research and development projects, particularly those aimed at commercializing its product candidates, as well as for general corporate purposes and working capital.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the offering. The sale of these securities is based on a registration statement on Form S-1, which the Securities and Exchange Commission (SEC) declared effective on April 15, 2024.
The company's product pipeline includes HyBryte™, a photodynamic therapy for cutaneous T-cell lymphoma, and SGX302, intended for psoriasis treatment. It also encompasses dusquetide (SGX942) for inflammatory diseases and SGX945 for Behçet's Disease.
Additionally, Soligenix is developing vaccine candidates for ricin toxin (RiVax®), filoviruses, and COVID-19 (CiVax™), leveraging its ThermoVax® heat stabilization technology. These initiatives have been supported by government grants and contracts from agencies such as NIAID, DTRA, and BARDA.
This news is based on a press release statement from Soligenix, Inc.
InvestingPro Insights
As Soligenix, Inc. (NASDAQ: SNGX) gears up for its public offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Soligenix holds a market capitalization of approximately $5.37 million USD. Despite challenging market conditions, the company has seen a significant return over the last week, with a 31.21% price total return, indicating a potential uptick in investor interest following the announcement of the public offering.
Investors should note that Soligenix is currently trading at a low revenue valuation multiple, with a revenue figure of $0.84 million USD over the last twelve months as of Q4 2023. This metric, coupled with the company's strategic focus on advancing its research and development projects, may suggest a valuation opportunity for those who believe in the company's potential to commercialize its product candidates.
However, it's important to consider that Soligenix is grappling with weak gross profit margins, as evidenced by a gross profit margin of -365.15% over the same period. This indicates that the company is currently spending more to produce its goods than it is earning from sales, a factor that could impact its long-term financial sustainability. Additionally, the company does not pay a dividend to shareholders, which may influence the investment decisions of income-focused investors.
For those interested in a deeper analysis, InvestingPro offers additional insights including the company's volatility and analyst profitability expectations. There are 10 more InvestingPro Tips available, which can provide a comprehensive look at the various factors affecting Soligenix's financial and market performance. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enhancing their investment research capabilities.
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