Palatin Expects $11.5 Million Financing to Cure NYSE American Delisting Notice

Rhea-AI Summary

Palatin Technologies (NYSE American: PTN) announced expected closure of an $11.5 million public offering on May 8, 2025, with potential for additional $11.5 million through milestone-related warrants. Combined with $2.3 million from April's ATM facility, this funding aims to resolve NYSE American's delisting notice due to non-compliance with stockholders' equity requirements. The company faces an appeal hearing later in Q2 2025. The financing will accelerate development of Palatin's obesity pipeline, including MC4R-targeted long-acting peptides and oral small molecules. The company plans to submit INDs in Q4 2025, with clinical data expected in H1 2026. Additionally, Palatin anticipates executing collaborations for its ocular portfolio, including a Phase 3 dry eye disease program and preclinical glaucoma and retina programs, in Q2 and Q3 2025.

Positive

• Secured $11.5 million in financing with potential for additional $11.5 million through warrants
• Received $2.3 million in net proceeds from ATM facility in April 2025
• Advancing obesity pipeline with IND submissions planned for Q4 2025
• Potential collaborations for ocular portfolio expected in Q2-Q3 2025
• Phase 3 dry eye disease program and preclinical glaucoma/retina programs showing strong interest

Negative

• Facing NYSE American delisting due to non-compliance with stockholders' equity requirements
• Appeal outcome for delisting notice remains uncertain
• Requires additional funding through warrant exercises to reach full $23 million potential

Insights

Biotech Financial Analyst

Palatin secures $13.8M financing to address NYSE delisting while advancing obesity pipeline and pursuing ocular asset partnerships amid regulatory uncertainty.

Palatin Technologies has announced expected financing totaling $11.5 million upfront with potential for an additional $11.5 million through milestone-related warrants. This funding, combined with $2.3 million in net proceeds from their April ATM facility, is intended to address NYSE American's delisting determination.

The delisting situation represents a significant regulatory challenge. NYSE American determined Palatin failed to meet stockholders' equity requirements under Sections 1003(a)(i), (ii), and (iii) after an 18-month remediation period that expired April 10. While management expresses confidence in their appeal scheduled for later this quarter, they explicitly acknowledge they "cannot guarantee the appeal's outcome."

The financing will support advancement of the company's obesity program, focusing on next-generation MC4R-targeted therapeutics including long-acting peptides and oral small molecules. These candidates target several conditions: general obesity, weight management, hypothalamic obesity, and rare MC4R-pathway genetic disorders. The development timeline indicates IND submissions in Q4 2025 with initial clinical data expected in H1 2026.

Management reports "strong interest" in their ocular portfolio, anticipating collaborations in Q2-Q3 2025 for their Phase 3 dry eye disease program and preclinical glaucoma and retina programs. These potential partnerships could provide additional validation for their melanocortin receptor system platform.

This announcement represents a critical financial bridge addressing an immediate regulatory concern while advancing pipeline assets, though significant execution risks remain regarding both the delisting appeal outcome and development timelines.

Funding Supports Advancement of Obesity Program and Strategic Business Development Initiatives

• Advancement of novel next-generation MC4R long-acting peptides and oral small molecules
  • IND applications planned for Q4 2025; clinical data expected H1 2026
  • Phase 1 SAD/MAD studies to include patients with hypothalamic obesity
• Ocular asset collaborations expected in Q2 and Q3 2025

CRANBURY, N.J., May 7, 2025 /PRNewswire/ -- Palatin Technologies, Inc. (the "Company" or "Palatin") (NYSE American: PTN), a biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor system, announced today that it expects to close its previously announced pricing of a public offering consisting of $11.5 million upfront and up to an additional $11.5 million upon the cash exercise of the milestone related warrants, on May 8, 2025. The Company believes the upfront amount of $11.5 million in gross proceeds, combined with approximately $2.3 million in net proceeds received in April 2025 under its at-the-market (ATM) facility, and its current plans and operations will be sufficient to resolve the delisting determination of NYSE American.

The NYSE American had determined that Palatin had not regained compliance with Sections 1003(a)(i), (ii), and (iii) of its continued listing standards, related to stockholders' equity by the conclusion of its 18-month plan period, which expired on April 10, 2025. An appeal hearing is scheduled for later this quarter. While the Company cannot guarantee the appeal's outcome, it is confident that it meets the necessary listing requirements.

"We are extremely excited to announce this financing," said Carl Spana, Ph.D., President and CEO of Palatin. "Not only do we believe it will address the NYSE American delisting issue, but more importantly, it will allow us to accelerate development of our obesity pipeline, including next-generation MC4R-targeted long-acting peptides and oral small molecules. These candidates target general obesity, weight management, hypothalamic obesity (acquired and congenital), and rare/orphan MC4R-pathway genetic disorders. We plan to submit INDs in the fourth quarter of this year, with initial clinical data expected in the first half of 2026."

Dr. Spana added, "We are also seeing strong interest in our ocular portfolio. Discussions around collaborations and asset sales for our Phase 3 dry eye disease program, as well as our preclinical glaucoma and retina programs, are progressing well. Based on current momentum, we anticipate executing deals in the second and third quarters of this year."

Forward-looking Statements
Statements in this press release that are not historical facts, including statements about future expectations of Palatin Technologies, Inc., such as statements about the Company's appeal of the NYSE American's delisting determination, the Company's expectation that it will regain compliance with the NYSE American's continued listing standards, ocular asset collaborations expected in the second and third quarters of 2025 and the Company's plan to submit INDs in the fourth quarter of 2025 with initial clinical data expected in the first half of 2026, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results to be materially different from its historical results or from any results expressed or implied by such forward-looking statements.

Palatin Technologies^® is a registered trademark of Palatin Technologies, Inc.

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SOURCE Palatin Technologies, Inc.

FAQ

Why is Palatin Technologies (PTN) facing delisting from NYSE American?

Palatin is facing delisting because it failed to regain compliance with Sections 1003(a)(i), (ii), and (iii) of NYSE American's continued listing standards related to stockholders' equity by the end of its 18-month plan period on April 10, 2025.

How much funding did Palatin Technologies (PTN) secure in May 2025?

Palatin secured $11.5 million in upfront financing through a public offering, with potential for an additional $11.5 million through milestone-related warrants, plus $2.3 million received in April 2025 from its ATM facility.

What are Palatin Technologies' (PTN) development plans for 2025-2026?

Palatin plans to submit INDs for its obesity pipeline, including MC4R-targeted long-acting peptides and oral small molecules, in Q4 2025, with initial clinical data expected in H1 2026. The company also expects to execute ocular asset collaborations in Q2-Q3 2025.

What is the status of Palatin Technologies' (PTN) ocular portfolio?

Palatin's ocular portfolio includes a Phase 3 dry eye disease program and preclinical glaucoma and retina programs. The company reports strong interest and expects to execute collaborations and asset sales in Q2-Q3 2025.