HENDERSON, Nev. - VolitionRx Limited (NYSE AMERICAN: VNRX), an epigenetics company, has initiated a registered direct offering of shares and warrants, aiming to raise approximately $7 million, with the potential for an additional $14.5 million if milestone-linked warrants are fully exercised. The definitive agreements for the sale of over 12 million shares and accompanying warrants were announced today, with the offering expected to close by August 12, 2024.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction. The series A and B milestone-linked warrants, priced at $0.57 per share, are exercisable six months after issuance, with varying expiration terms based on the achievement of specific milestones related to the company's product development and regulatory approvals.
The funds raised are designated for research, product development, clinical studies, commercialization efforts, and general corporate purposes. The securities are being offered pursuant to a shelf registration statement filed with the Securities and Exchange Commission (SEC) and declared effective as of November 8, 2021.
Volition is recognized for its work in the field of epigenetics, focusing on developing blood tests for early detection and monitoring of diseases, including certain cancers and conditions linked to NETosis, such as sepsis. The company's operations span across Belgium, the United States, Nevada, London, and Singapore.
The press release includes forward-looking statements concerning the offering's anticipated use of proceeds and potential milestone achievements. These statements are subject to market conditions and customary closing conditions. It should be noted that this press release does not constitute an offer to sell the securities nor a solicitation of an offer to buy, and the offering will only be made via a prospectus supplement and accompanying base prospectus.
This article is based on a press release statement from VolitionRx Limited.
In other recent news, VolitionRx Limited reported first-quarter earnings for 2024, showing a cash balance of $11.8 million and revenue of approximately $170,000. The company is actively pursuing cash flow neutrality in 2025 through strategic cost cuts, non-dilutive funding, and licensing negotiations. VolitionRx also anticipates an increase in revenue in the latter half of 2024, driven by recent product launches and ongoing licensing discussions.
The company is making significant progress in clinical trials for Nu.Q NET and Capture-PCR technologies, with potential for licensing deals. VolitionRx has also received $23 million from licensing its Nu.Q Vet tests for veterinary use, further bolstering its revenue sources. Executives are set to take fees in stock to contribute to cost savings, starting this month for at least six months.
These recent developments indicate VolitionRx's firm commitment to achieving profitability. The company's focus on commercialization through licensing, coupled with its cost reduction efforts, positions it for sustained success in the biotechnology market.
InvestingPro Insights
As VolitionRx Limited (NYSE AMERICAN: VNRX) navigates its capital-raising journey with a recent registered direct offering, investors are keeping a close eye on the company's financials and market performance. According to InvestingPro data, VNRX has reported a notable revenue growth of 133.06% over the last twelve months as of Q1 2024, with a quarterly revenue growth of 14.5% in Q1 2024. This demonstrates a robust upward trajectory in sales, aligning with the analysts' anticipation of sales growth in the current year.
Despite the positive sales outlook, the company's stock has experienced significant volatility, with a price total return of -53.28% over the past year, underscoring the risks involved with investing in the biotech sector. The recent price drop of -10.42% over the last week further highlights this volatility. According to InvestingPro Tips, three analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism in the company's earnings prospects despite the recent downturn in share price.
InvestingPro also points out that Volition operates with a moderate level of debt, which could be a factor for investors to consider when assessing the company's financial health. For those interested in a deeper dive, there are additional InvestingPro Tips available, providing more insights into VNRX's financials and market performance.
Investors can access these insights and more by visiting the InvestingPro platform, which offers an array of data and analytics to help make informed decisions. For VNRX, there are 10 additional InvestingPro Tips available for those who seek a comprehensive understanding of the company's financial position and future outlook.
The upcoming earnings date on August 14, 2024, will be a critical moment for the company and its stakeholders, as it will provide further clarity on Volition's financial trajectory and the effectiveness of its strategic initiatives.
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