NEW YORK - Synaptogenix, Inc. (NASDAQ:SNPX), a biopharmaceutical company focused on neurodegenerative diseases, has announced a $5.0 million financing round with existing investors. The capital raise involves the sale of 5,000 shares of Series C convertible preferred stock, each with a stated value of $1,000, in a registered public offering and a concurrent private placement of additional preferred stock and unregistered common stock purchase warrants. The closing of the offering is anticipated to occur around September 12, 2024, pending customary closing conditions.
The preferred stock has an initial conversion price set at $4.00 per share and comes with a 5.0% quarterly dividend payable in cash. The warrants, also with an initial exercise price of $4.00 per share, are exercisable immediately and will remain so for five years from the date of issuance.
Dr. Alan Tuchman, CEO of Synaptogenix, expressed satisfaction with the support from long-term investors and stated that the proceeds would enable the company to pursue strategic opportunities, including potential acquisitions and funding innovative research to drive growth and shareholder value.
The securities in the registered offering were offered through a shelf registration statement on Form S-3, declared effective by the SEC on April 27, 2022. Details of the offering will be available in a final prospectus supplement to be filed with the SEC.
Securities in the private placement were sold exempt from the registration requirements of the Securities Act of 1933, under Section 4(a)(2) and Rule 506 of Regulation D, and state law equivalents. Synaptogenix has committed to registering the shares of common stock issuable upon conversion of the preferred stock and exercise of the warrants for resale.
This press release is not an offer to sell these securities nor a solicitation of an offer to buy, in any state or jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.
Synaptogenix has a history of developing therapies for neurodegenerative diseases and has conducted studies on Bryostatin-1, its lead therapeutic candidate, in Alzheimer's disease, Fragile X syndrome, multiple sclerosis, stroke, and traumatic brain injury. The FDA has granted Orphan Drug Designation for Bryostatin-1 as a treatment for Fragile X syndrome.
The company's forward-looking statements are subject to risks and uncertainties, and there is no assurance that the clinical program for Bryostatin-1 will be successful or that the drug will receive regulatory approval or be commercialized. The information in this article is based on a press release statement.
In other recent news, Synaptogenix, Inc. has announced a series of significant developments. The pharmaceutical company extended the maturity date of its Series B Convertible Preferred Stock from August 31, 2024, to September 9, 2024. In addition, Synaptogenix has initiated pre-clinical trials for polyunsaturated fatty acid (PUFA) analogs, aiming to treat spinal cord injuries in collaboration with the Neuroscience Center of Excellence at LSU Health New Orleans.
Further, the US Patent and Trademark Office has granted a patent for these PUFA compounds, which have shown potential in pre-clinical testing for Alzheimer's disease and other neurodegenerative disorders. Synaptogenix also received FDA authorization to proceed with a clinical trial for Bryostatin-1 as a potential treatment for multiple sclerosis, to be conducted at the Mellen Center for Multiple Sclerosis, part of the Cleveland Clinic Neurological Institute.
The company's financial standing, including $26.3 million in cash, is robust enough to fund the Phase 1 trial for MS. Additionally, Synaptogenix is exploring additional innovative assets and developing Bryostatin-1 for other indications, including Alzheimer's and Fragile X syndrome. Lastly, Synaptogenix has regained compliance with Nasdaq's minimum bid price requirement through a 1-for-25 reverse stock split, ensuring its continued listing on the Nasdaq Capital Market.
InvestingPro Insights
As Synaptogenix, Inc. (NASDAQ:SNPX) advances its clinical programs and engages in strategic financing, it's crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, Synaptogenix holds a market capitalization of $4.61 million, indicating its size within the biopharmaceutical industry focused on neurodegenerative diseases. Despite the company's proactive measures in securing capital, the real-time metrics reveal a challenging financial landscape.
InvestingPro Tips highlight that Synaptogenix is quickly burning through cash, which is consistent with its reported operating income of approximately -$6.83 million over the last twelve months as of Q2 2024. This rapid cash consumption could be a concern for investors considering the company's future funding needs. Additionally, Synaptogenix's valuation implies a poor free cash flow yield, which is an important consideration for investors evaluating the potential return on investment.
On the positive side, Synaptogenix holds more cash than debt on its balance sheet, which may provide some financial flexibility in the short term. The company's liquid assets also exceed short-term obligations, suggesting it can meet its immediate financial commitments.
Investors should note that Synaptogenix is trading near its 52-week low, with the price of its stock at $3.54 at the previous close. This could represent a potential entry point for those who believe in the company's long-term prospects, provided they are comfortable with the associated risks.
For those seeking more comprehensive analysis, there are additional InvestingPro Tips available on the platform, offering deeper insights into Synaptogenix's financials and market performance. Access to these tips can be found at https://www.investing.com/pro/SNPX, where investors can explore further to make informed decisions.
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