Rani Therapeutics Holdings, Inc. Announces Pricing of $10.0 Million Registered Direct Offering

Rhea-AI Summary

Rani Therapeutics Holdings (Nasdaq: RANI), a clinical-stage biotherapeutics company, has announced a $10.0 million registered direct offering. The offering includes 2,800,000 shares of Class A common stock and pre-funded warrants for 446,753 shares, along with Series A and B common warrants. Each share or pre-funded warrant is sold with one Series A and one Series B warrant at $3.08. The warrants have an exercise price of $3.08 and will be exercisable after 6 months. Series A warrants expire in 18 months, while Series B warrants expire in 5.5 years. Maxim Group is the sole placement agent. The offering is expected to close around July 23, 2024, subject to customary conditions.

Positive

• Secured $10.0 million in gross proceeds through registered direct offering
• Offering includes both common stock and warrants, providing flexibility for investors
• Warrants have the same exercise price as the offering price, potentially indicating confidence in future stock performance

Negative

• Potential dilution of existing shareholders' ownership
• Offering price of $3.08 may be at a discount to current market price, potentially impacting stock value
• Additional shares from warrant exercises could further dilute ownership in the future

News Market Reaction

+1.79%

1 alert

+1.79% News Effect

On the day this news was published, RANI gained 1.79%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SAN JOSE, Calif., July 22, 2024 (GLOBE NEWSWIRE) -- Rani Therapeutics Holdings, Inc. (“Rani Therapeutics” or “Rani”) (Nasdaq: RANI), a clinical-stage biotherapeutics company focused on the oral delivery of biologics and drugs, today announced that it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of 2,800,000 shares of Rani Therapeutics’ Class A common stock (the “Common Stock”) and pre-funded warrants to purchase 446,753 shares of Common Stock, together with Series A common warrants to purchase up to an aggregate of 3,246,753 shares of Common Stock and Series B common warrants to purchase up to an aggregate of 3,246,753 shares of Common Stock, in a registered direct offering. Each share of Common Stock and pre-funded warrant is being sold together with one Series A common warrant to purchase one share of Common Stock and one Series B common warrant to purchase one share of Common Stock at a combined purchase price of $3.08. The Series A common warrants and Series B common warrants will each have an exercise price of $3.08 per share, will each be exercisable 6 months from the date of issuance, and, in the case of Series A common warrants, will expire 18 months from the date of issuance, and in the case of Series B warrants, will expire five and a half years from the date of issuance.

Maxim Group LLC is acting as the sole placement agent for the offering.

The offering is expected to close on or about July 23, 2024, subject to satisfaction of customary closing conditions. The gross proceeds to the Rani Therapeutics from this offering are expected to be approximately $10.0 million, before deducting placement agent fees and other offering expenses, excluding the proceeds, if any, from the exercise of the pre-funded warrants and the Series A and Series B common warrants.

The securities in the registered direct offering are being offered and sold by Rani pursuant to a "shelf" registration statement on Form S-3 (File No. 333-266444) which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on August 10, 2022. The offering of the securities is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and the accompanying prospectus relating to the registered direct offering will be filed with the SEC. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, on the SEC's website at http://www.sec.gov or by contacting Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3745.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Rani Therapeutics
Rani Therapeutics is a clinical-stage biotherapeutics company focused on advancing technologies to enable the development of orally administered biologics and drugs. Rani has developed the RaniPill® capsule, which is a novel, proprietary and patented platform technology, intended to replace subcutaneous injection or intravenous infusion of biologics and drugs with oral dosing. Rani has successfully conducted several preclinical and clinical studies to evaluate safety, tolerability and bioavailability using RaniPill® capsule technology.

Investor Contact:
investors@ranitherapeutics.com

Media Contact:
media@ranitherapeutics.com

FAQ

What is the size of Rani Therapeutics' (RANI) registered direct offering announced on July 22, 2024?

Rani Therapeutics (RANI) announced a $10.0 million registered direct offering on July 22, 2024.

What securities are included in Rani Therapeutics' (RANI) July 2024 offering?

The offering includes 2,800,000 shares of Class A common stock, pre-funded warrants for 446,753 shares, and Series A and B common warrants to purchase up to 3,246,753 shares each.

What is the purchase price for Rani Therapeutics' (RANI) securities in the July 2024 offering?

The combined purchase price for each share of common stock or pre-funded warrant, along with one Series A and one Series B warrant, is $3.08.

When are the warrants from Rani Therapeutics' (RANI) July 2024 offering exercisable?

The Series A and B common warrants will be exercisable 6 months from the date of issuance.