The current developments have shown that Inovio Pharmaceuticals Inc (NASDAQ:INO) has finally accepted to sell its shares to the public after a very long period of time of anticipation from the public. According to different sources, Inovio has already announced the pricing of underwritten public offering of 12,500,000 shares of its common stocks will be availed to the public for them to buy at their own wish and convenience. It is also expected that with this move, the company will be in a position to accrue revenue of approximately $75 million. This figure is before the deduction of underwriting discounts and commissions and other relevant expenses.
The benefits of Offering Stocks to the Public
According to business analysts with close ties with Inovio, the net proceeds from this investment will be directed towards the day to day general corporate running such as clinical trial expenses, research and development expenses as well as general and administrative expenses. Other expenses which might be covered by the funds from the sale of stocks to the public will be the manufacturing expenses and other business development activities.
According to the joint running managers i.e. Piper Jaffray & Co. “the shares of common stock described above are being offered by Inovio pursuant to a shelf registration statement filed by Inovio with the Securities and Exchange Commission (SEC) that was declared effective on June 5, 2015” According to the company’s press release, it was made clear that it shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer shall be termed unlawful.
The Future of Inovio after Trading its Stock to the Public
From the forward looking statements from the company, it is a fact that Inovio claims the protection of the Private Securities Litigation reforms Act of 1995. According to some sources, it is clear that Inovio is here to offer its stocks for the public to benefit but it is very keen when it comes to the issue of protecting the integrity of its business operation. In that case, the company is willing to follow all the required regulations as far as selling of its securities is concerned.
Inovio Pharmaceuticals closed its yesterday’s session at $5.96 after declining $0.05 or 0.83%.