• Staff

Renovorx Files Initial Public Offering

California-based RenovoRx, Inc. (NASDAQ: RNXT) has filed for offering up to 1.85 million units of securities in an initial public offering. Each unit is made up of one share of common stock and a three-quarter warrant to buy one share of common stock at an exercise price of $14.40 per share, based on an initial public price of $12 per unit. RenovoRx anticipates pricing the offering between $11 and $13. The company's shares have been granted for listing on the NASDAQ under the designation "RNXT."

RenovoRx is a clinical-stage biopharmaceutical company focused on developing therapies for the local treatment of solid tumors. The company is aiming to produce reformulations of existing approved medications to boost efficiency. Currently, RenovoRx undertaking a Phase 3 registration trial for its lead drug candidate RenovoGem. The medication seeks to force chemotherapeutic agents across the vessel wall using pressure to boost the targeting of solid tumors.

The company aims to raise $22.2 million in gross profit from an IPO of its common stock and three-quarter warrant. The exercise price of the warrant is 120% of the IPO price. No existing shareholders have shown interest in purchasing shares at the IPO price.

If successful, the firm’s enterprise value at IPO (ex. Underwriter options) would be approximately $78 million, excluding the effects of underwriter over-allotment options.

Excluding effects of underwriter options and private placement shares or restricted shock, if at all, the float to outstanding shares ratio will be approximately 22.54%.

The company’s management confirms that it will use the net profits from the IPO as follows:

1. “Approximately $8.4 million to fund our ongoing TIGeR-PaC Phase 3 clinical trial of RenovoGem in LAPC patients through mid-2023, including our planned interim analysis in our TIGeR-PaC Phase 3 clinical trial which we expect will take place in the second half of 2022;

2. Approximately $3.6 million to fund the launch of our planned BENEFICIAL Phase 2/3 clinical trial of RenovoGem in HCCA patients, which we expect to commence in the first half of 2022, through mid-2023;

3. The balance will be used for working capital and general corporate purposes, including the costs of operating as a public company.

4. We estimate that our current capital resources, along with the net proceeds from this offering, will be sufficient to fund our operating expenses and capital expenditure requirements through 2023.”

Roth Capital Partners is the lead left underwriter and IPOs led by this firm over the last 12-month period have raked in an average return of negative (36.3%) since their IPO. This is a bottom-tier performance for all top underwriters during this period.