Biopharmaceutical company Oragenics Inc. closed an underwritten public offering of shares and warrants to raise about $12.5 million in gross proceeds.
The antibiotics maker offered 16,666,668 common shares, short-term warrants to buy up to 8,333,334 shares and long-term warrants to buy up to 8,333,334 shares, for a combined price of 75 cents each.
Oragenics has granted the underwriter an option to buy up to 2.5 million additional shares, short-term warrants to buy 1,250,000 shares and long-term warrants to buy 1,250,000 common shares at the public offering price.
The short-term warrants are immediately exercisable at an exercise price of 75 cents per share and will expire 18 months after issuance or 21 trading days after Oragenics releases top-line data from a phase 2 study of its drug candidate AG013, whichever comes earlier.
AG013 is a potential treatment for oral mucositis, or mouth sores, in cancer patients. Oral mucositis is a common complication of cancer treatment.
The long-term warrants are also immediately exercisable at an exercise price of 90 cents per common share and will expire five years after issue date.
Net proceeds from the offering will be used to fund research of AG013 as well as for preclinical development of the company's antibiotics program and other clinical trials. Net proceeds will also be used for working capital and general corporate purposes.
H.C. Wainwright & Co. is the sole book-running manager for the offering.