Palatin Technologies, Inc. (NYSEMKT:PTN) announced today that it intends to offer and sell, subject to market and other conditions, 25,384,616 shares of its common stock and warrants to purchase 12,692,310 shares of its common stock for anticipated gross proceeds of $16.5 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Palatin. The shares of common stock and warrants will be offered as Series A Units, with each Series A Unit consisting of one share of common stock and a Series J warrant to purchase 0.50 of a share of common stock, and will be priced at $0.65 per unit. The units are to be sold by Gevo subject to market and other conditions in an underwritten public offering.
The offering is expected to close on or about December 6, 2016, subject to customary closing conditions. The Series J warrants are immediately exercisable at a price of $0.80 per share of common stock and will expire on the fifth anniversary of the date of issuance.
The public offering would dilute shareholders’ investments, and as such Palatin shares are currently dropping nearly 30% to $0.56 in Thursday’s trading session. PTN has a 1-year high of $0.90 and a 1-year low of $0.36. The stock’s 50-day moving average is $0.59 and its 200-day moving average is $0.54.
On the ratings front, Palatin has been the subject of a number of recent research reports. In a report issued on November 15, Canaccord analyst John Newman reiterated a Buy rating on PTN, with a price target of $6.00, which represents a potential upside of 1011% from where the stock is currently trading. Separately, on the same day, Roth Capital’s Joseph Pantginis maintained a Buy rating on the stock and has a price target of $7.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Newman and Joseph Pantginis have a yearly average loss of 12.3% and 12.5% respectively. Newman has a success rate of 34% and is ranked #4144 out of 4243 analysts, while Pantginis has a success rate of 34% and is ranked #4152.
Palatin Technologies, Inc. is a biopharmaceutical company which develops targeted, receptor-specific peptide therapeutics for the treatment of diseases with significant unmet medical need and commercial potential. Its programs are based on molecules that modulate the activity of the melanocortin and natriuretic peptide receptor systems. Its primary product in development is bremelanotide for the treatment of female sexual dysfunction. It is also developing an inhalation formulation of peptide mimetic natriuretic peptide receptor A-agonist, for treatment of cardiovascular and pulmonary indications.