INOVIO Announces Pricing of $25 Million Public Offering

Rhea-AI Summary

INOVIO Pharmaceuticals (NASDAQ: INO), a biotechnology company specializing in DNA medicines, has announced the pricing of a $25 million public offering. The offering consists of 14,285,715 shares of common stock along with Series A and Series B warrants, all priced at $1.75 per share.

The warrants allow holders to purchase up to an additional 14,285,715 shares each at an exercise price of $1.75. The underwriters, led by Piper Sandler & Co., have a 30-day option to purchase up to 2,142,857 additional shares and corresponding warrants. The offering is expected to close around July 7, 2025.

Positive

• None.

Negative

• Significant dilution for existing shareholders with 14.3M new shares being offered
• Additional potential dilution from Series A and B warrants totaling 28.6M shares
• Offering price represents a discount to market value

Insights

Biotech Finance Specialist

INOVIO's $25M offering dilutes shareholders by 14.3M shares at a $1.75 price point, significantly impacting capital structure while providing operational runway.

INOVIO has priced a $25 million public offering that involves issuing 14,285,715 shares of common stock along with two series of warrants at $1.75 per share. This financing move signals substantial dilution for existing shareholders while providing needed capital for the company's DNA medicine development programs.

The structure of this offering is particularly notable – it includes both Series A and Series B warrants that could potentially lead to the issuance of up to 28.6 million additional shares if fully exercised at the $1.75 exercise price. This creates a complex dynamic where the total dilution could be significantly higher than the initial share issuance suggests.

Additionally, INOVIO has granted underwriters a 30-day option to purchase approximately 2.1 million additional shares and accompanying warrants, which could increase the gross proceeds beyond the initial $25 million. The company is working with Piper Sandler as the lead book-runner, suggesting institutional support for this capital raise.

This financing provides INOVIO with critical operating capital for its continued development of DNA medicines targeting HPV-related diseases, cancer, and infectious diseases. However, the offering price and significant warrant coverage indicates challenging market conditions for the company's fundraising efforts, likely reflecting investor concerns about the company's path to profitability or clinical development timelines.

PLYMOUTH MEETING, Pa., July 3, 2025 /PRNewswire/ -- INOVIO Pharmaceuticals, Inc. (Nasdaq: INO), a biotechnology company focused on developing and commercializing DNA medicines to help treat and protect people from HPV-related diseases, cancer, and infectious diseases, today announced the pricing of an underwritten public offering of 14,285,715 shares of its common stock and accompanying Series A warrants to purchase up to 14,285,715 shares of its common stock (or pre-funded warrants in lieu thereof) at an exercise price of $1.75 per share of common stock and Series B warrants to purchase up to 14,285,715 shares of its common stock (or pre-funded warrants in lieu thereof) at an exercise price of $1.75 per share of common stock, at a combined public offering price of $1.75 per share of common stock and accompanying Series A and Series B warrants. All of the securities in the offering are being sold by INOVIO. The offering is expected to close on or about July 7, 2025, subject to the satisfaction of customary closing conditions. INOVIO also granted the underwriters an option for a period of 30 days to purchase up to 2,142,857 additional shares of the Company's common stock and Series A warrants to purchase up to 2,142,857 additional shares of its common stock and Series B warrants to purchase up to 2,142,857 additional shares of its common stock at the public offering price, less the underwriting discounts and commissions.

The gross proceeds from the offering, before deducting the underwriting discounts and commissions and offering expenses payable by INOVIO, excluding any exercise of the underwriters' option to purchase additional securities and assuming no exercise of the accompanying Series A and Series B warrants, are expected to be approximately $25 million.

Piper Sandler & Co. is acting as sole active book-running manager for the offering. Oppenheimer & Co. Inc. is also acting as a passive bookrunner for the offering.

A shelf registration statement relating to the shares of common stock and accompanying Series A and Series B warrants offered in the offering described above was filed with the Securities and Exchange Commission ("SEC") on November 9, 2023 and declared effective by the SEC on January 31, 2024. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering were filed with the SEC and are available on the SEC's website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus, when available, may also be obtained by contacting: Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, or by telephone at (800) 747-3924, or by e-mail at prospectus@psc.com and Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, New York 10004, or by telephone at (212) 667-8055, or by e-mail at EquityProspectus@opco.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered 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 INOVIO

INOVIO is a biotechnology company focused on developing and commercializing DNA medicines to help treat and protect people from HPV-related diseases, cancer, and infectious diseases. INOVIO's technology optimizes the design and delivery of innovative DNA medicines that teach the body to manufacture its own disease-fighting tools.

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 the public offering of INOVIO's securities, including the timing of the closing of the offering, as well as the anticipated proceeds of the offering. 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 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 INOVIO's Annual Report on Form 10-K for the year ended December 31, 2024, INOVIO's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and in other filings that INOVIO 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 INOVIO undertakes no obligation to update forward-looking statements, and readers are cautioned not to place undue reliance on such forward-looking statements.

Contacts

Media: Jennie Willson (267) 429-8567 jennie.willson@inovio.com
Investors: Peter Vozzo, ICR Healthcare, 443-213-0505 peter.vozzo@icrhealthcare.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/inovio-announces-pricing-of-25-million-public-offering-302497614.html

SOURCE INOVIO Pharmaceuticals, Inc.

FAQ

What is the size and price of INOVIO's (INO) July 2025 public offering?

INOVIO is offering 14,285,715 shares at $1.75 per share, along with Series A and B warrants, for total gross proceeds of approximately $25 million.

What are the terms of INO's warrant offering in July 2025?

The offering includes Series A and B warrants to purchase up to 14,285,715 shares each (total of 28.6M shares) at an exercise price of $1.75 per share.

When will INOVIO's (INO) July 2025 public offering close?

The offering is expected to close on or about July 7, 2025, subject to customary closing conditions.

Who are the underwriters for INOVIO's (INO) July 2025 public offering?

Piper Sandler & Co. is acting as sole active book-running manager, while Oppenheimer & Co. Inc. is acting as a passive bookrunner.

How will the proceeds from INO's offering be used?

While specific use of proceeds was not detailed in the announcement, as a biotechnology company, funds are typically used for research, development, and general corporate purposes.