Genprex has completed their S-1 IPO offering. Their IPO is now listed and trading on the Nasdaq Exchange under the ticker NASDAQ: GNPX. The offering raised $6.5 million at $5/share with a valuation of $58.5 mill before the offering. Prospectus. Note that Manhattan Street Capital has rights to warrants in Genprex, so we have conflict of interest.
This is the first S-1 IPO that Manhattan Street Capital has hosted (we have already hosted Reg A+ IPOs). We have demonstrated here that with the right steps taken, it is possible and worthwhile to use an online marketing and investment process in an S-1.
This highlights a little-known fact: S-1 type IPOs are allowed to market themselves broadly in the same way that Reg A+ offerings and IPOs can. This situation applies in specific circumstances for an S-1, and there are major advantages unique to Reg A+ in comparison. The addition of the option for companies to market themselves broadly in an S-1 is a pretty significant development.
The major advantage of the S-1 route is that it’s not capped at $50 mill. The primary advantages of Reg A+ are that a company can bring in the capital even if an offering does not meet the minimum to list on the NASDAQ or NYSE, and that the cost of audit and legal fees are often much lower for a Reg A+.
The company raised capital to pay the costs of further clinical trials, as the cost of these trials is very high. This is the usual path for young Biotech companies, and it will be necessary to raise more capital for further trials if the company stays independent. The earliest that Oncoprex could be available to patients is two years after raising the capital in this IPO.
The potential global market for Oncoprex type treatments is estimated to be $26 Bill in 2025, which is interesting from a financial point of view. What I am most excited about is the potential for quality of life improvement and longer lifespan for thousands of lung cancer patients.
Genprex CEO Rodney Varner said, “We are looking forward to continuing our clinical trials and to explore Oncoprex’s effectiveness on other cancers. We want to provide lung cancer patients with better choices and the ability to use effective gene therapy in their treatment.”
The IPO underwriter is Network1 and they have an over-allotment option in the transaction, also known as a “Green Shoe”. Genprex has raised approximately $12 mill in prior investment rounds.
Genprex is based in Austin, Texas and is a Delaware Corporation.
Service providers for this offering.
Please note that I hosted this IPO on the Manhattan Street Capital platform and that Genprex is paying for this service. We will donate 50% of proceeds to the Bonnie J. Addario Lung Cancer Foundation.