Evogene secures $5.5 million in direct offering By Investing.com

REHOVOT, Israel – Evogene Ltd (NASDAQ:). (NASDAQ: EVGN, TASE: EVGN), a computational biology company, has announced definitive agreements for a registered direct offering and concurrent private placement expected to generate gross proceeds of approximately $5.5 million. The offering involves the sale of 1,692,308 ordinary shares or equivalents, each bundled with Series A and Series B ordinary warrants to purchase additional shares.

The combined purchase price for each share and accompanying warrants is set at $3.25. The Series A warrants, exercisable immediately at $3.55 per share, will expire five years after issuance, while the Series B warrants, also exercisable at $3.55 per share, will expire after eighteen months.

The closing of the offering is anticipated on or about August 26, 2024, contingent on customary closing conditions. Evogene plans to allocate the net proceeds for working capital and general corporate purposes.

A.G.P./Alliance Global Partners (NYSE:) is serving as the sole placement agent for the transaction. The ordinary shares and equivalents are being offered pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on March 28, 2024. The Series A and Series B warrants are being issued in a private placement under an exemption from registration requirements.

This press release, based on a statement from Evogene, does not constitute an offer to sell or a solicitation of an offer to buy any securities. The issuance of securities in the concurrent private placement is not subject to registration under the Securities Act of 1933, as amended, and is contingent upon an applicable exemption from registration requirements.

In other recent news, Evogene Ltd. has reported significant revenue growth and strategic advancements in its subsidiaries for the second quarter of 2024. The company’s total revenues for the first half of 2024 amounted to approximately $5.1 million, a substantial increase from $1.3 million in the same period of 2023. The anticipated growth in revenue for the second half of 2024 is primarily expected to be driven by seed orders from its subsidiary, Casterra. Furthermore, Evogene reported a reduced net loss for the first half of 2024, which decreased to approximately $9.8 million, compared to $14.8 million in the same period last year.

In addition to its financial results, Evogene also announced significant advancements in its subsidiaries, Biomica and Lavie Bio. Biomica is showing promising trends in its Phase 1 trial for BMC128, a microbiome-based therapeutic for various cancers. Lavie Bio’s pipeline is progressing on schedule, with field trial results expected later this year. These recent developments highlight Evogene’s strategic positioning for growth within the agricultural biotechnology sector.

InvestingPro Insights

Evogene Ltd. (NASDAQ: EVGN) is navigating challenging financial waters, with recent metrics from InvestingPro highlighting areas of concern and potential interest for investors. The company’s market capitalization stands at a modest $21.08 million, reflecting the market’s current assessment of its value. Despite the apparent challenges, analysts have noted a silver lining with an expected sales growth in the current year, which could signal a turning point for the company’s revenue trajectory.

However, the optimism around sales growth is tempered by the company’s profitability outlook. Analysts do not anticipate Evogene will be profitable this year, aligning with the reported negative P/E ratio of -0.91. This figure suggests that investors are currently unable to gauge Evogene’s earnings potential based on its stock price due to the lack of profits.

From a balance sheet perspective, Evogene holds more cash than debt, providing some financial flexibility. This is complemented by the company’s liquid assets exceeding its short-term obligations, indicating a degree of resilience in managing its immediate financial commitments. Still, the company is quickly burning through cash, which raises questions about long-term sustainability without additional capital or a significant increase in revenue.

InvestingPro Tips also reveal that the stock is in oversold territory according to the Relative Strength Index (RSI), which could interest investors looking for potential entry points based on technical analysis. Additionally, the stock is trading near its 52-week low, which might present a buying opportunity for those who believe in the company’s fundamentals and long-term prospects.

For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/EVGN. These tips could provide deeper insights into Evogene’s financial health and market position, offering valuable context for the company’s current capital raising efforts and future potential.

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