HOUSTON - Bio-Path Holdings, Inc. (NASDAQ:BPTH), a biotechnology firm focused on developing nucleic acid cancer drugs, has announced a registered direct offering and a concurrent private placement to institutional investors.
The agreement involves the sale of 375,000 shares of common stock at a purchase price of $3.225 per share, alongside warrants to purchase an additional 375,000 shares at $3.10 per share.
The warrants, which are unregistered, will become immediately exercisable and will expire five years from the date of issuance. The closing of the offering is anticipated on or about April 19, 2024, subject to customary closing conditions. Post-closing, the number of outstanding shares of Bio-Path's common stock will increase from 1,190,306 to 1,565,306.
H.C. Wainwright & Co., LLC is serving as the exclusive placement agent for the offering. Bio-Path expects to raise approximately $1.2 million in gross proceeds before fees and expenses. The company plans to allocate the net proceeds for working capital and other general corporate purposes.
The shares in the registered direct offering are being sold pursuant to an effective shelf registration statement, including a base prospectus filed with the SEC on May 27, 2022, and declared effective on June 14, 2022. The prospectus supplement and the accompanying base prospectus detailing the offering will be available on the SEC's website.
The offer and sale of the unregistered warrants are part of a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended. Therefore, the warrants and the underlying shares of common stock may not be reoffered or resold in the U.S. absent an effective registration statement or an applicable exemption from registration requirements.
Bio-Path Holdings is developing its proprietary DNAbilize® technology, which has produced a pipeline of RNAi nanoparticle drugs. The company's lead product candidate, prexigebersen, is currently in a Phase 2 study for blood cancers, while other product candidates are in various stages of development for the treatment of blood and solid tumors.
This news article is based on a press release statement from Bio-Path Holdings, Inc.
InvestingPro Insights
As Bio-Path Holdings, Inc. (NASDAQ:BPTH) proceeds with its strategic financing to advance its DNAbilize® technology and pipeline of cancer drugs, the company's financial health and market performance provide valuable context for investors.
The latest data from InvestingPro shows a market capitalization of $3.73 million, reflecting the company's current valuation in the market. Despite the challenges, Bio-Path holds more cash than debt on its balance sheet, which could provide some cushion against financial headwinds.
Still, an in-depth look at the company's performance metrics reveals some areas of concern. With a negative Price/Earnings (P/E) ratio of -0.15 for the last twelve months as of Q4 2023 and a Price/Book ratio of 5.54, the valuation appears stretched when profitability is absent. Furthermore, the company's operating income stands at a loss of $15.84 million for the same period, underscoring the financial challenges it faces.
InvestingPro Tips for Bio-Path highlight the company's weak gross profit margins and the lack of profitability not only in the last twelve months but also as anticipated by analysts for this year.
Moreover, the stock performance has been underwhelming, with significant price declines over various timeframes, including a 1-month price total return of -33.33% and a 6-month return of -71.48%. It's worth noting that Bio-Path does not pay a dividend, which may be a consideration for income-focused investors.
For those considering an investment in Bio-Path Holdings, additional insights are available. InvestingPro offers more tips that could help in making a well-informed decision. To explore these insights further and gain a comprehensive understanding of BPTH's investment potential, use the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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