Oragenics (NYSE:OGEN) Inc., a Florida-based biopharmaceutical company, has entered into a sales agreement with Dawson James Securities Inc. to potentially sell shares of its common stock in an at-the-market offering, according to a recent SEC filing.
The agreement, dated October 11, 2024, allows the company to issue and sell shares from time to time, depending on market demand, through sales made directly on or through the NYSE American where its stock is traded under the symbol OGEN.
Under the terms of the agreement, Oragenics has the flexibility to sell shares at its discretion, with the ability to set a minimum price for the sales. The company is not obligated to sell any specific number of shares and can suspend sales if the conditions are not favorable.
Dawson James will act as the sales agent and will be compensated with a commission of up to 3.0% of the gross proceeds from each sale made under the agreement. Additionally, Oragenics has agreed to reimburse Dawson James for certain legal fees and expenses up to a specified limit.
The sales agreement leverages a previously filed Registration Statement on Form S-3 and a prospectus supplement filed on October 11, 2024. The company has disclosed that the offering could reach up to $10,000,000 in aggregate sales, subject to market conditions and regulatory limitations.
Oragenics intends to use the net proceeds from this offering to further the development of its ONP-002 product candidate, as well as for general corporate purposes and working capital. The timing and amount of the funds used will depend on the progress of research and development activities and other financial considerations.
The information for this article is based on a press release statement.
In other recent news, Oragenics, Inc. has made significant strides in its operations. The biopharmaceutical company has raised over $6 million throughout 2024, including a public offering that generated approximately $4.45 million.
The company has also granted stock options to its President J. Michael Redmond and Chief Financial Officer Janet Huffman under its 2021 Equity Incentive Plan.
In terms of clinical developments, Oragenics has progressed with ONP-002, which has shown no evidence of causing DNA damage or genotoxicity in preclinical studies. The drug has also passed FDA-required cardiotoxicity tests, indicating a low risk of causing cardiac arrhythmias. These milestones mark critical safety validations for ONP-002 before proceeding to Phase II trials.
Oragenics has also strengthened its leadership team with the appointments of Dr. William 'Frank' Peacock as Chief Clinical Officer and Dr. James 'Jim' Kelly as Chief Medical Officer, both of whom will oversee the upcoming Phase II trial.
The company has rescheduled its 2023 Annual Meeting of Shareholders from August to December 2024. These are among the recent developments that highlight Oragenics' commitment to advancing its product portfolio and addressing the global health challenge posed by concussions.
InvestingPro Insights
Oragenics Inc .'s recent decision to enter into an at-the-market offering agreement comes at a challenging time for the company, as revealed by InvestingPro data. The company's market capitalization stands at a modest $2.73 million, reflecting its current struggles. InvestingPro Tips indicate that Oragenics is trading near its 52-week low and has experienced significant price declines across various timeframes, with a striking 94.4% drop year-to-date.
The company's financial health appears precarious, with InvestingPro data showing a negative gross profit of $13.37 million in the last twelve months as of Q2 2024. This aligns with an InvestingPro Tip highlighting Oragenics' weak gross profit margins. The decision to raise capital through share sales may be a strategic move to address these financial challenges and support the development of its ONP-002 product candidate.
Investors considering Oragenics should note that while the stock's RSI suggests it may be oversold, the company is not currently profitable and does not pay dividends. These factors, combined with high price volatility, underscore the speculative nature of this investment.
For those seeking a deeper analysis, InvestingPro offers 15 additional tips on Oragenics, providing a more comprehensive view of the company's prospects and challenges in the biopharmaceutical sector.
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