BERWYN, Pa. - Virpax Pharmaceuticals Inc. (NASDAQ: VRPX), a preclinical-stage pharmaceutical company, has announced the pricing of a $5 million public offering. The offering includes shares of common stock and pre-funded warrants to purchase common stock at $0.50 per share, with the warrants priced at just a fraction less. The company plans to use the proceeds to fund its investigational new drug (IND) filing for Probudur™, a patented injectable local anesthetic for post-operative pain management, as well as for working capital and general corporate purposes.
The offering, managed by Spartan Capital Securities, LLC as the exclusive placement agent, is expected to close on November 14, 2024, assuming all customary closing conditions are met. This follows the effectiveness of the company's registration statement, which was declared by the U.S. Securities and Exchange Commission (SEC) on November 12, 2024.
Virpax's approach to drug development focuses on non-opioid and non-addictive pain treatments, aiming to improve patient compliance and optimize the effectiveness of their product candidates. The company's stock is traded on the Nasdaq Capital Market under the ticker symbol VRPX.
The final prospectus related to the offering will be available on the SEC's website, and copies can be obtained from Spartan Capital Securities upon its release.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such jurisdiction.
The information provided here is based on a press release statement from Virpax Pharmaceuticals.
In other recent news, Virpax Pharmaceuticals has been navigating a series of significant developments. The pharmaceutical company faces potential delisting from Nasdaq due to non-compliance with the minimum stockholders’ equity requirement. Despite receiving an extension to meet the requirement, Virpax Pharmaceuticals was unable to comply by the end of the plan period, leading to Nasdaq's decision to proceed with the delisting.
The company also announced the appointment of Katharyn Field as Vice President and principal executive officer, strengthening its executive team. In financial moves, Virpax Pharmaceuticals fully repaid a $2.525 million senior secured promissory note ahead of schedule and issued nearly two million new shares of common stock, generating an estimated $2.7 million in proceeds.
Furthermore, Virpax Pharmaceuticals extended an agreement with a key institutional investor for exclusive negotiation rights on subsequent financing deals worth a minimum of $5 million. The company also experienced an auditor change, with EisnerAmper LLP resigning and Bush & Associated CPA LLC taking over.
Additionally, there have been changes in the board, with the immediate resignations of Dr. Vanila M. Singh and Eric Floyd. Lastly, Virpax Pharmaceuticals plans to file an Investigational New Drug Application for its pain management product, Probudur, by the end of the year. These are among the recent developments that have been shaping Virpax Pharmaceuticals' trajectory.
InvestingPro Insights
As Virpax Pharmaceuticals (NASDAQ: VRPX) moves forward with its $5 million public offering, investors should consider some key financial metrics and insights provided by InvestingPro.
The company's market capitalization stands at a modest $3.03 million, reflecting its preclinical stage status. This valuation aligns with the company's current focus on funding its IND filing for Probudur™ and general corporate purposes.
InvestingPro Tips highlight that Virpax holds more cash than debt on its balance sheet, which could be seen as a positive factor for a company in the capital-intensive pharmaceutical development sector. This cash position may be further bolstered by the proceeds from the current offering.
However, it's important to note that Virpax is not profitable over the last twelve months, with an adjusted operating income of -$13.56 million. This is typical for early-stage pharmaceutical companies investing heavily in research and development.
The stock's performance has been volatile, with InvestingPro data showing a strong return of 31.66% over the last month, contrasting sharply with a 91.87% decline over the past year. This recent uptick could be related to investor interest surrounding the public offering announcement.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Virpax Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
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