CRANBURY, N.J. - Palatin Technologies (NYSE:PTN), Inc. (NYSE American: PTN), a developer of melanocortin receptor system modulating medicines, has struck a deal with an institutional investor for the exercise of warrants issued in November 2022 and October 2023. This arrangement will result in the issuance of 3,233,277 shares of common stock, providing the company with gross proceeds of around $6.1 million.
The investor has agreed to exercise warrants for 1,818,812 shares from November 2022 and 1,415,095 shares from October 2023 at a revised price of $1.88 per share. In return, Palatin will issue new Series A and Series B warrants for the purchase of 2,727,273 and 2,122,642 shares, respectively, also at $1.88 per share.
The Series A warrants and a portion of the Series B warrants are immediately exercisable, while the remainder will become exercisable upon stockholder approval. Both are set to expire five years from their respective commencement dates.
This transaction is expected to close around June 24, 2024, subject to customary closing conditions. Palatin intends to allocate the net proceeds for working capital and other general corporate purposes.
The securities involved in this transaction, including the Series A and B warrants and the underlying shares of common stock, are being issued in accordance with Section 4(a)(2) of the Securities Act of 1933 and Regulation D, and have not been registered under the Securities Act or any state securities laws.
Palatin, focused on addressing diseases with significant unmet medical needs, aims to form marketing collaborations with industry leaders to maximize the commercial potential of its products.
This press release is informational and does not constitute an offer to sell or a solicitation to buy the mentioned securities, nor shall there be any sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The information is based on a press release statement from Palatin Technologies.
In other recent news, Palatin Technologies has been making significant strides in its clinical development programs. The company's recent Q3 financial results showed a net loss of $8.4 million, with no gross product sales due to the sale of Vyleesi's worldwide rights.
Still, a fair value adjustment gain of $0.4 million was recorded, marking an improvement from the previous year's loss. Operating expenses rose to $9.2 million, primarily due to investments in Melanocortin receptor programs.
H.C. Wainwright maintained its Buy rating for Palatin, following the announcement of a Phase 2 clinical trial. This trial is focused on the co-administration of bremelanotide, an FDA-approved melanocortin 4 receptor agonist, with a phosphodiesterase 5 inhibitor for the treatment of erectile dysfunction.
The company also plans to submit an Investigational New Drug application for a new co-formulation that combines bremelanotide with a PDE5i, which could be administered through a single injection.
In addition, Palatin Technologies plans to initiate two new clinical programs by mid-2024, focusing on obesity and erectile dysfunction. The company is also preparing for additional clinical studies to support a New Drug Application for its dry eye disease program, PL9643. These recent developments underscore Palatin's commitment to advancing its clinical programs and engaging with regulatory authorities.
InvestingPro Insights
In the wake of Palatin Technologies' recent warrant exercise agreement, which is anticipated to bolster the company's capital by approximately $6.1 million, a closer look at real-time data and expert analysis from InvestingPro offers additional context for investors.
InvestingPro Data highlights that Palatin has experienced a notable revenue growth of 52.8% in the last twelve months as of Q3 2024, totaling $5.9 million USD. Still, despite this growth, the company's financial health appears to be strained, with a negative gross profit margin of -329.27% and an operating income margin of -555.24% for the same period.
InvestingPro Tips provide a deeper analysis, indicating that Palatin is rapidly depleting its cash reserves and analysts have revised their earnings expectations downwards for the upcoming period. Moreover, they anticipate a sales decline in the current year and do not expect the company to achieve profitability within the year. These factors, combined with a valuation that implies a poor free cash flow yield, paint a challenging financial picture for Palatin.
On the positive side, Palatin has demonstrated a strong return over the last three months, with a 16.05% price total return, suggesting some investor confidence in the short term. However, the company does not pay a dividend, which may be a consideration for income-focused investors.
For those looking to delve further into Palatin's financial nuances, InvestingPro offers additional insights, with more tips that can be found at: https://www.investing.com/pro/PTN. Investors interested in a comprehensive analysis can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of detailed financial information and expert assessments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.