A Miramar-based biotechnology company that is working to develop a vaccine for Covid-19 has applied to be listed on the Nasdaq.
Generex Biotechnology Corp. aims to raise $33 million in Series A Preferred Stock under the symbol "GNBTP." The funding would provide the company with working capital and "other general corporate purposes," including paying dividends on the public stock offering and share repurchases, according to a recent filing with the U.S. Securities and Exchange Commission.
Currently a pink sheets stock company listed on the OTC Markets, Generex would offer 1 million shares starting at $33 each if it is approved to be listed on the Nasdaq. The company says it would deposit 39% of the proceeds from the offering in a reserve to pay shareholders dividends for at least three years.
Generex is banking on its majority-owned subsidiary's vaccine platform to develop and widely distribute a vaccine for the coronavirus.
The company owns NuGenerex Immune-Oncology (NGIO), formerly Antigen Express. Research on NuGenerex's Ii-Key peptide vaccine technology showed promising results in SARS and breast cancer patients in previous studies. The company says the technology can be applied to the coronavirus.
Once clinical trials show which peptides in blood samples are best at fighting Covid-19, the Ii-Key technology could artificially copy those proteins for the vaccine. The technology would allow for mass manufacturing of the vaccine, CEO Joe Moscato previously told the Business Journal.
Studies on Generex's potential Covid-19 vaccine have mostly been conducted in China, where the company inked an agreement in February to receive funding and begin testing. The company needs more funding as it researches the technology, especially for possible trials in the U.S. and Canada, according to the SEC filing.
To date, the company is not profitable. It has accumulated a net loss of $440.39 million for shareholders, according to the filing. Generex intends to file an application to have its subsidiary, NuGenerex, also listed on the Nasdaq in the future.
Boca Raton-based Dawson James Securities is placement agent for Generex's Series A Preferred Stock. The offering is expected to end on or before Dec. 31.
Generex Biotechnology Corp. (GNBT) Stock Research Links