Applied DNA Sciences Announces Pricing of $6.5 Million Registered Direct Offering and Concurrent Private Placement

On October 30, 2024, Applied DNA Sciences, Inc. (NASDAQ: APDN) disclosed a significant transaction in a Form 8-K filing with the Securities and Exchange Commission. The company revealed its entry into a securities purchase agreement with institutional investors for a Registered Direct Offering and a Concurrent Private Placement. The offering involves the issuance and sale of shares of common stock and warrants to purchase additional shares.

The Registered Direct Offering includes 19,247,498 shares of the company’s common stock and pre-funded warrants to purchase up to 1,065,002 shares of common stock. Additionally, in the Private Placement, Applied DNA Sciences will issue unregistered Series C and Series D Common Stock Purchase Warrants collectively to purchase up to 20,312,500 shares of common stock. The purchase price for each share and accompanying warrants differs slightly, with shares priced at $0.32 each, and warrants at $0.3199.

Craig-Hallum Capital Group LLC acted as the placement agent for the Offering, which is expected to generate gross proceeds of approximately $6.5 million before deducting fees and other expenses. The closing of the Offering is anticipated to occur around October 31, 2024, subject to customary closing conditions.

Notably, the Offering was made under the Company’s shelf registration statement on Form S-3 and requires the Company to implement a reverse stock split if it fails to meet Nasdaq bid price requirements for a specified period. Furthermore, the Company’s executives and directors are under restrictions regarding the sale or disposal of their shares for a specific period following the Offering.

The Company has engaged the Placement Agent under an engagement letter, agreeing to payment of fees and issuance of Placement Agent Warrants as part of the Offering. A legal opinion from McDermott Will & Emery LLP regarding the validity of the shares and warrants issued is included in the filing. The full terms and conditions of the agreements mentioned are detailed in the exhibits attached to the Form 8-K filing.

Applied DNA Sciences emphasized that the Offering presents inherent risks, considering factors like its history of net losses, uncertainties in obtaining additional financing, and market acceptance of its products and services. The Company does not intend to update forward-looking statements unless obligated by law.

In a related disclosure, Applied DNA Sciences announced the Amendment of its Series A Warrants and a Waiver of a Negative Covenant in the Placement Agency Agreement in separate agreements with specified holders, further aligning its financial strategies with current market conditions.

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The original 8-K filing also detailed that the Offering is in line with the Company’s plans for expansion in the biotechnology sector and its focus on polymerase chain reaction (PCR) technologies for varied applications. The Company intends to utilize the net proceeds for the development of Therapeutic DNA Production Services and general corporate purposes. The full text of the press release and other agreements discussed in the filing is available for reference.

The forward-looking statements provided by Applied DNA Sciences highlight its ambitions and strategic directions in utilizing its technologies for broader market presence and potential growth opportunities. The Company set forth plans to engage in further research and development activities, capitalize on strategic initiatives, and optimize its operational efficiency moving forward.

For further updates and details on Applied DNA Sciences’ financial activities, investors and interested parties can access the official SEC filings and updates on the Company’s investor relations website.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Applied DNA Sciences’s 8K filing here.

Applied DNA Sciences Company Profile

Applied DNA Sciences, Inc, a biotechnology company, develops and commercializes technologies to produce and detect deoxyribonucleic acid (DNA) in the Americas, Europe, Asia, and internationally. It operates through three segments: Therapeutic DNA Production Services; MDx Testing Services; and DNA Tagging and Security Products and Services.