BERWYN, PA – Virpax Pharmaceuticals, Inc. (NASDAQ:VRPX), a Delaware-incorporated pharmaceutical company, has received an extension until September 30, 2024, to meet Nasdaq's minimum stockholders' equity requirement. The company, headquartered in Berwyn, Pennsylvania, was notified on Monday that it now has additional time to comply with the Nasdaq Listing Rule 5550(b)(1), which mandates a minimum stockholders' equity of $2.5 million. As of December 31, 2023, Virpax's equity stood at $1,934,321, falling short of the requirement.
In related news, Virpax's stockholders convened on Monday for the 2024 Annual Meeting, where they voted on several key proposals. Notably, stockholders approved two amendments to the company's 2022 Equity Incentive Plan. The first amendment increases the number of shares available for grant under the plan by 267,799 shares, and the second raises the "evergreen provision" percentage from 2% to 5% of the outstanding shares of common stock as of December 31 each year.
During the Annual Meeting, Eric Floyd was elected as a Class III director, with a term expiring at the 2027 Annual Meeting of Stockholders. Additionally, Gary Herman was also elected as a Class III director for the same term. Stockholders ratified the appointment of EisnerAmper, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
The voting results from the Annual Meeting also showed support for the amendments to the 2022 Equity Incentive Plan, with proposals to increase the number of shares for awards and to adjust the evergreen provision both passing.
Virpax Pharmaceuticals specializes in pharmaceutical preparations and is known under the organization name 03 Life Sciences. The company's stock is traded on the Nasdaq Capital Market under the ticker symbol VRPX. This report is based on a press release statement and the information contained in the company's SEC filing.
In other recent news, Virpax Pharmaceuticals has made significant strides in its financial and operational activities. The company announced the early repayment of a $2.525 million senior secured promissory note, indicating a strong financial position and robust management strategy. This move, which reduces future interest payments, could potentially enhance the company's financial standing and lower its overall cost of capital.
In addition, Virpax issued nearly two million new shares of common stock following the exercise of previously issued warrants, resulting in an increase of approximately $2.7 million in proceeds. This development, coupled with the company's announcement of a public offering to raise around $2.25 million, facilitated by A.G.P./Alliance Global Partners (NYSE:GLP), highlights the company's active efforts to strengthen its financial base.
Furthermore, Virpax reported positive results from a pilot study of its pain management product, Probudur, indicating the drug was well-tolerated and exhibited a slow-release profile without adverse effects. The company plans to file an Investigational New Drug Application for Probudur by the end of the year.
The company also regained compliance with Nasdaq's minimum bid price requirement, ensuring its continued listing on the Nasdaq Stock Market. Despite facing a potential delisting notification from Nasdaq due to not meeting the minimum bid price requirement, Virpax Pharmaceuticals explored options to regain compliance, including the possibility of a reverse stock split. These developments underscore Virpax Pharmaceuticals' ongoing commitment to maintaining a strong presence in the market and delivering value to its investors.
InvestingPro Insights
Virpax Pharmaceuticals, Inc. (NASDAQ:VRPX) has been navigating a challenging financial landscape, as reflected in its recent performance metrics. With a market capitalization of $3.08 million, the company's size remains relatively small within the pharmaceutical industry. Despite receiving an extension to meet Nasdaq's stockholders' equity requirement, Virpax's financials reveal a company that is not currently profitable, with a negative Price-to-Earnings (P/E) ratio of -0.08 for the last twelve months as of Q1 2024.
Investors should note that Virpax's stock has experienced significant price volatility, as evidenced by a 116.51% return over the last month, contrasted by a -87.49% return over the last year. This level of volatility can be particularly impactful for a company of Virpax's size. Additionally, the company holds more cash than debt on its balance sheet, which could provide some financial flexibility in the short term.
For those considering investing in Virpax Pharmaceuticals, it's important to consider these factors alongside the company's strategic initiatives, such as the recent amendments to the 2022 Equity Incentive Plan. For a deeper dive into Virpax's financial health and stock performance, including more InvestingPro Tips, visit https://www.investing.com/pro/VRPX. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 10 additional InvestingPro Tips available that could provide further insights into Virpax's potential as an investment.
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