On May 28, 2024 Applied DNA Sciences, Inc. (NASDAQ: APDN) ("Applied DNA" or the "Company"), a leader in PCR-based DNA technologies, reported the pricing of a public offering with gross proceeds to the Company expected to be approximately $12.0 million, before deducting placement agent fees and other estimated expenses payable by the Company (Press release, Applied DNA Sciences, MAY 28, 2024, View Source [SID1234643726]).
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The offering is comprised of 9,230,769 Units with each Unit consisting of (i) either (A) one share of common stock ("Common Share") or (B) one pre-funded warrant (the "Pre-Funded Warrant") to purchase one Common Share; (ii) one Series A Warrant to purchase one Common Share at an exercise price of $1.99 per share that will expire on the fifth anniversary of stockholder approval of the warrants (the "Series A Warrants"); and (iii) one Series B Warrant to purchase one Common Share at an exercise price of $1.99 per share or, pursuant to an alternative cashless exercise option, receive three shares of common stock. The Series B Warrant will expire on the one year anniversary of stockholder approval of the warrants (the "Series B Warrants;" together with the Series A Warrants, the "Warrants"). The Warrants cannot be exercised until their terms have been approved by the Company’s stockholders at a stockholders’ meeting.
The purchase price of each Unit with a Common Share is $1.30 and the purchase price of each Unit with a Pre-Funded Warrant will be equal to the price per Unit with a Common Share, minus $0.0001.
Applied DNA intends to use the net proceeds from this offering to further develop its Therapeutic DNA Production Services and MDx Testing Services, as well as for general corporate purposes. Applied DNA may also use a portion of the net proceeds for research and development expenses, capital expenditures, working capital and general and administrative expenses, or to fund potential acquisitions of or investments in businesses, products and technologies that complement its business; however, Applied DNA has no present commitments or agreements to make any such acquisitions or investments. This offering is expected to close on or about May 29, 2024, subject to satisfaction of customary closing conditions.
Craig-Hallum is acting as lead placement agent and Laidlaw & Company (UK) Ltd. is acting as co-placement agent for the offering.
The securities described above are being offered by Applied DNA pursuant to a registration statement on Form S-1 (File No. 333-278890) previously filed and declared effective by the Securities and Exchange Commission (the "SEC"). This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made only by means of a written preliminary prospectus and final prospectus that will form a part of the registration statement. A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Alternatively, when available, copies of the final prospectus relating to this offering may be obtained from Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402, by telephone at (612) 334-6300 or by email at [email protected]; or from Laidlaw & Company (UK) Ltd., Attention: Syndicate Department, 521 Fifth Avenue, 12th Floor, New York, NY 10175, or by email at [email protected].