Genelux Corporation Announces Pricing of Approximately $27.5 Million Underwritten Offering of Common Stock and Accompanying Warrants
Rhea-AI Summary
Genelux (Nasdaq: GNLX), an immuno-oncology company, has announced the pricing of an underwritten offering of 6,875,000 shares of common stock and accompanying warrants at $4.00 per share and warrant. Each warrant will have an exercise price of $5.25. The gross proceeds are expected to be approximately $27.5 million, with net proceeds providing working capital into Q1 2026. The funds will support the clinical development of Olvi-Vec, with Phase 3 trial results anticipated in H2 2025. The offering is expected to close around May 29, 2024. Guggenheim Securities and Newbridge Securities are managing the offering. A 30-day option for an additional 1,031,250 shares and warrants is also included.
Positive
- Gross proceeds from the offering expected to be $27.5 million.
- Net proceeds will provide working capital until Q1 2026.
- Funds to support continued clinical development of Olvi-Vec.
- Topline results of Phase 3 trial for Olvi-Vec expected in H2 2025.
- Securities offered under an effective shelf registration statement.
Negative
- Dilution risk with issuance of 6,875,000 shares and accompanying warrants.
- Underwriting discounts and commissions will reduce net proceeds.
- Warrants have a five-year expiration period, potentially affecting stock price.
- The offering is subject to customary closing conditions, adding uncertainty.
News Market Reaction – GNLX
On the day this news was published, GNLX declined 43.04%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
WESTLAKE VILLAGE, Calif., May 24, 2024 (GLOBE NEWSWIRE) -- Genelux Corporation (Genelux) (Nasdaq: GNLX), a late clinical-stage immuno-oncology company, today announced the pricing of an underwritten offering of 6,875,000 shares of its common stock and accompanying warrants to purchase 6,875,000 shares of its common stock at a combined offering price of
Guggenheim Securities is acting as sole book-running manager for the offering. Newbridge Securities Corporation is acting as co-manager for the offering.
The securities were offered by Genelux pursuant to an effective shelf registration statement previously filed by Genelux with the U.S. Securities and Exchange Commission (SEC). A final prospectus supplement and accompanying prospectus related to the offering will be filed with the SEC, and will be available on the SEC's website located at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained by contacting: Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, New York 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Genelux
Genelux is a late clinical-stage biopharmaceutical company focused on developing a pipeline of next-generation oncolytic immunotherapies for patients suffering from aggressive and/or difficult-to-treat solid tumor types. Genelux’s most advanced product candidate, Olvi-Vec (olvimulogene nanivacirepvec), is a proprietary, modified strain of the vaccinia virus. Olvi-Vec currently is being evaluated in OnPrime/GOG-3076, a multi-center, randomized, open-label Phase 3 registrational trial evaluating the efficacy and safety of Olvi-Vec in combination with platinum-doublet + bevacizumab compared with physician's choice of chemotherapy and bevacizumab in patients with platinum-resistant/refractory ovarian cancer. The core of Genelux's discovery and development efforts revolves around its proprietary CHOICE™ platform from which Genelux has developed an extensive library of isolated and engineered oncolytic vaccinia virus immunotherapeutic product candidates, including Olvi-Vec.
Forward-Looking Statements
This release contains or may imply "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not based on historical fact and include, but are not limited to, statements regarding anticipated gross proceeds, its ability to fund for general corporate purposes through the first quarter of 2026, the expected use of proceeds, timing related to topline results of the OnPrime Phase 3 registrational trial and anticipated closing date. Any forward-looking statements are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties related to completion of the public offering on the anticipated terms or at all, market conditions and satisfaction of customary closing conditions related to the proposed public offering. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in Genelux’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, and in other filings that Genelux makes with the SEC from time to time. There can be no assurance that any of the forward-looking information provided herein will be proven accurate. These forward-looking statements speak only as of the date hereof and Genelux undertakes no obligation to update forward-looking statements, and readers are cautioned not to place undue reliance on such forward-looking statements.
Contacts
Ankit Bhargava, MD
Allele Communications, LLC
genelux@allelecomms.com
Source: Genelux Corporation
FAQ
What is the combined offering price for Genelux 's common stock and warrants?
When will the offering of Genelux 's common stock and warrants close?
What are the gross proceeds expected from Genelux 's offering?
What will the net proceeds from Genelux 's offering be used for?
When are the topline results of the Phase 3 trial for Olvi-Vec expected?
What is the exercise price of the warrants issued by Genelux ?
Who is managing Genelux 's underwritten offering?
Is there an option to purchase additional shares and warrants in Genelux 's offering?
