WESTLAKE VILLAGE, Calif. - Genelux Corporation (NASDAQ:GNLX), a late-stage immuno-oncology company, has announced the pricing of an underwritten public offering of shares and accompanying warrants. The company is offering 6,875,000 shares of common stock together with warrants to purchase an equivalent number of shares, each at a combined price of $4.00, before underwriting discounts and commissions.
The warrants, with an exercise price of $5.25 per share, will become exercisable immediately after the offering's close and will expire five years from the date of issue. Genelux expects the offering to yield gross proceeds of around $27.5 million, with net proceeds intended to fund working capital through the first quarter of 2026, covering general corporate expenses and the ongoing clinical development of its lead product candidate, Olvi-Vec.
Olvi-Vec is currently under evaluation in a Phase 3 trial for the treatment of platinum-resistant/refractory ovarian cancer. Topline results for this trial are anticipated in the second half of 2025. The offering is expected to close on or about May 29, 2024, subject to customary closing conditions.
In addition, Genelux has allowed underwriters a 30-day option to purchase up to an additional 1,031,250 shares of common stock and accompanying warrants to cover over-allotments if any. Guggenheim Securities is the sole book-running manager, with Newbridge Securities Corporation serving as the co-manager for the offering.
The information in this article is based on a press release.
InvestingPro Insights
As Genelux Corporation (NASDAQ:GNLX) navigates through its latest public offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, GNLX holds a market capitalization of $122.19 million, with a significant return over the last week of 26.03%. This comes alongside a strong return over the last month of 33.33%, suggesting a recent uptick in investor confidence.
However, it's important to note that the company's revenue has experienced a sharp decline in the last twelve months as of Q1 2024, with a decrease of 99.93%. This is coupled with a negative P/E ratio of -4.8, indicating that the company is not currently profitable. The price/book ratio stands at a high 8.1, which might raise concerns about valuation among potential investors.
Two InvestingPro Tips that might be particularly relevant for those considering this offering include the fact that Genelux is a niche player in the immuno-oncology industry and that it has been quickly burning through cash. These insights could be vital for understanding the company's position and potential risks involved.
For those interested in a deeper dive into Genelux's financials and market performance, InvestingPro offers additional tips on the company's outlook. There are 13 more InvestingPro Tips available, providing a comprehensive analysis for informed decision-making. To access these insights, visit https://www.investing.com/pro/GNLX. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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