Palatin Technologies Announces Closing of Reduced Public Offering

Rhea-AI Summary

Palatin Technologies (OTC PINK: PTNT) has closed a reduced public offering, raising approximately $1.1 million through the sale of 7,324,119 shares of common stock at $0.15 per share, along with three series of warrants. The offering includes Series F warrants ($0.30 exercise price, 5-year expiry), Series G warrants ($0.15 exercise price, 24-month expiry), and Series H warrants ($0.225 exercise price, 24-month expiry from issuance). The company has transitioned to trading on the OTC Pink market and plans to use the proceeds for working capital and general corporate purposes. A.G.P./Alliance Global Partners led the placement, with Laidlaw & Company as co-placement agent.

Positive

• Successful closing of public offering raising $1.1 million in gross proceeds
• Multiple warrant series provide potential for additional future funding
• Secured institutional and accredited investor participation

Negative

• Reduced size of public offering indicates weaker than expected demand
• Delisting from major exchange to OTC Pink market suggests financial distress
• Significant dilution to existing shareholders at low share price of $0.15
• Complex warrant structure may create additional future dilution

Insights

Biotech Investment Analyst

Palatin's $1.1M reduced offering and OTC Pink transition signals severe financial distress and heightened investment risk.

Palatin's announcement reveals concerning capital market developments that substantially impact its financial outlook. The company has moved from a major exchange to the OTC Pink market – typically a significant red flag indicating inability to meet listing requirements of larger exchanges. This downgrade substantially reduces visibility to institutional investors and limits capital access.

The "reduced" public offering language is particularly troubling – suggesting the company failed to secure its initial funding target. The $1.1 million gross proceeds represents an extremely modest capital raise for a biopharmaceutical company, where clinical trials typically require tens of millions. For context, this amount likely provides minimal runway measured in months rather than years.

The offering price of $0.15 per share indicates severe equity devaluation, while the complex warrant structure (three separate warrant classes) suggests the company struggled to attract investors without substantial sweeteners. The Series G warrants appear contingent on FDA milestones, revealing additional financial uncertainty.

Most concerning is the absence of specific development programs earmarked for funding. Instead, proceeds are designated for "working capital and general corporate purposes" – typically code for maintaining basic operations rather than advancing pipeline assets. This signals Palatin lacks resources to meaningfully progress its melanocortin receptor system therapeutics.

The combination of exchange downgrade, minimal proceeds, reduced offering size, and nonspecific use of proceeds collectively paint a picture of a company in significant financial distress with uncertain commercial prospects.

Company Transitioned onto the OTC Pink

CRANBURY, N.J., May 8, 2025 /PRNewswire/ -- Palatin Technologies, Inc. (OTC PINK: PTNT) ("Palatin" or the "Company"), a biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor system, today announced the closing of a reduced previously announced public offering with participation from institutional and accredited investors consisting of 7,324,119 shares of common stock together with Series F warrants to purchase up to 7,324,119 shares of common stock (the "Series F Warrants"), Series G warrants to purchase up to 7,324,119 shares of common stock (the "Series G Warrants"), and Series H warrants to purchase up to 7,324,119 shares of common stock (the "Series H Warrants"), at a combined public offering price of $0.15 per share of common stock and accompanying warrants (the "Offering").

The Series F Warrants have an exercise price of $0.30 per share, are immediately exercisable and expire on the five-year anniversary of the original issuance date, subject to the certain terms as defined in such warrant. The Series G Warrants have an exercise price of $0.15 per share, are immediately exercisable and expire on the earlier of (i) the 24-month anniversary of the original issuance date or (ii) the expiration of the FDA Exercise Period (as such term is defined in the Series G Warrant). The Series H Warrants will be issuable to the holder upon their exercise of the Series G Warrants, will have an exercise price of $0.225 per share, will be immediately exercisable upon issuance and will expire on the 24-month anniversary of its issuance date.

The Company received aggregate gross proceeds from the Offering of approximately $1.1 million. The Company intends to use the net proceeds from the Offering primarily for working capital and general corporate purposes.

A.G.P./Alliance Global Partners acted as lead placement agent for the Offering and Laidlaw & Company (UK) Ltd. acted as co-placement agent for the Offering.

The securities described above were offered pursuant to a registration statement on Form S-1, as amended (File No. 333-286280), relating to the Offering which was declared effective by the Securities and Exchange Commission (the "SEC") on May 6, 2025. The Offering was made only by means of a prospectus forming part of the effective registration statement relating to the Offering. An electronic copy of the final prospectus was filed with the SEC and may be obtained on the SEC's website at http://www.sec.gov and may also be obtained by contacting A.G.P./Alliance Global Partners at 590 Madison Avenue, 28th Floor, New York, NY 10022, by phone at (212) 624-2060 or e-mail at prospectus@allianceg.com.

This press release shall not constitute an offer to sell or a 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 registration or qualification under the securities laws of any such state or other jurisdiction.

About Palatin
Palatin is a biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor systems, with targeted, receptor-specific product candidates for the treatment of diseases with significant unmet medical need and commercial potential. Palatin's strategy is to develop products and then form marketing collaborations with industry leaders to maximize their commercial potential. For additional information regarding Palatin, please visit Palatin's website at www.Palatin.com and follow Palatin on Twitter at @PalatinTech.

Forward Looking Statements
Statements in this press release that are not historical facts, including the potential exercise of the milestone related Series G Warrants, which may never occur, for additional gross proceeds to the Company of $1.1 million, the intended use of proceeds from the Offering, 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. Palatin intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements reflect the Company's current views with respect to future events and are based on assumptions and subject to known and unknown risks and uncertainties, which change over time, and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, without limitation, market and other conditions; the anticipated use of proceeds from the Offering; results of clinical trials; regulatory actions by the FDA and other regulatory and the need for regulatory approvals; Palatin's ability to fund development of its technology and establish and successfully complete clinical trials; the length of time and cost required to complete clinical trials and submit applications for regulatory approvals; products developed by competing pharmaceutical, biopharmaceutical and biotechnology companies; commercial acceptance of Palatin's products; and other factors discussed in Palatin's periodic filings with the SEC. All forward-looking statements included in this press release are made only as of the date of this press release. The Company assumes no obligation to update any written or oral forward-looking statement, whether as a result of new information, future events or otherwise unless required by law.

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

 

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SOURCE Palatin Technologies, Inc.

FAQ

What is the size and price of Palatin Technologies (PTN) public offering in May 2025?

Palatin Technologies raised $1.1 million by offering 7,324,119 shares at $0.15 per share, along with three series of warrants (F, G, and H).

Why did Palatin Technologies (PTN) move to the OTC Pink market?

The press release indicates Palatin has transitioned to the OTC Pink market, typically suggesting the company no longer meets the listing requirements of major exchanges.

What are the terms of the warrants in Palatin's May 2025 offering?

The offering includes Series F warrants ($0.30 exercise price, 5-year term), Series G warrants ($0.15 exercise price, 24-month term), and Series H warrants ($0.225 exercise price, 24-month term from issuance).

How will Palatin Technologies use the proceeds from its May 2025 offering?

Palatin intends to use the net proceeds primarily for working capital and general corporate purposes.

Who were the placement agents for Palatin's May 2025 offering?

A.G.P./Alliance Global Partners acted as lead placement agent, while Laidlaw & Company (UK) Ltd. served as co-placement agent.