INOVIO Announces Proposed Public Offering

Rhea-AI Summary

INOVIO Pharmaceuticals (Nasdaq: INO) announced plans for a proposed public offering of common stock and accompanying warrants. The biotechnology company, focused on DNA medicines for HPV-related diseases, cancer, and infectious diseases, will sell all securities in the offering. Oppenheimer & Co. Inc. and Citizens JMP are serving as joint book-running managers, with Stephens Inc. as lead manager.

The offering is subject to market conditions, with no guarantees regarding completion, size, or terms. It will be conducted under a shelf registration statement filed with the SEC on November 9, 2023, and declared effective on January 31, 2024.

Positive

• None.

Negative

• Potential shareholder dilution through new stock issuance
• Additional warrants being offered could lead to further dilution
• Uncertain terms and timing of the offering indicating possible market dependency

Insights

Financial Analyst

This public offering announcement signals significant dilution risk for existing shareholders. With a micro-cap market value of just $102.5M, any substantial share issuance could materially impact the stock price. The inclusion of warrants in the offering package typically indicates more challenging financing conditions and could create additional future dilution pressure. The timing and structure, involving multiple underwriters (Oppenheimer, Citizens JMP and Stephens), suggests INOVIO is seeking to raise substantial capital relative to its current market cap. This financing move is likely driven by the need to fund ongoing development of DNA medicines, but comes at a potentially high cost to shareholder value.

Market Research Analyst

The market's reception to this offering will likely be cautious given INOVIO's small market capitalization and the biotech sector's current challenging funding environment. The company's strategic focus on DNA medicines for HPV-related diseases, cancer and infectious diseases requires significant R&D investment, making capital raises necessary but potentially dilutive. The involvement of three investment banks suggests a coordinated effort to ensure successful placement, though the unspecified offering size and terms leave uncertainty. This financing approach, while providing needed capital, typically leads to immediate share price pressure due to supply-demand dynamics.

PLYMOUTH MEETING, Pa., Dec. 12, 2024 /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 that it intends to offer and sell shares of its common stock and accompanying warrants to purchase shares of its common stock, in an underwritten public offering. All of the securities in the proposed offering will be sold by INOVIO. The proposed offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.

Oppenheimer & Co. Inc. and Citizens JMP are acting as joint book-running managers for the offering. Stephens Inc. is acting as lead manager for the offering.

A shelf registration statement relating to the shares of common stock and accompanying 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 will be 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 proposed offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus, when available, may also be obtained by contacting: Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com; or Citizens JMP Securities, LLC, 600 Montgomery Street, Suite 1100, San Francisco, California 94111, by telephone at (415) 835-8985, or by email at syndicate@jmpsecurities.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 INOVIO's anticipated public offering, including the completion of the public offering on the anticipated terms, if at all. 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, 2023, INOVIO's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 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

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SOURCE INOVIO Pharmaceuticals, Inc.

FAQ

What type of securities is INOVIO (INO) offering in its December 2024 public offering?

INOVIO is offering shares of common stock along with accompanying warrants to purchase shares of its common stock.

When was INOVIO's shelf registration statement for this offering declared effective?

The shelf registration statement was declared effective by the SEC on January 31, 2024.

Who are the book-running managers for INOVIO's 2024 public offering?

Oppenheimer & Co. Inc. and Citizens JMP are acting as joint book-running managers, with Stephens Inc. as lead manager.

What is the intended use of proceeds from INOVIO's public offering?

The press release does not specify the intended use of proceeds from the public offering.

What therapeutic areas does INOVIO focus on according to the announcement?

INOVIO focuses on developing DNA medicines for HPV-related diseases, cancer, and infectious diseases.