Rani Therapeutics Secures $3M Through Registered Direct Offering Amid Share Price Drop

Rani Therapeutics has announced a $3M registered direct offering with a single institutional investor, selling 0.35M Class A common shares and 3.15M pre-funded warrants at $0.40/share and $0.3999/share, respectively. The deal is expected to close on July 16, 2025. RANI shares have fallen nearly 31% on Tuesday.

Rani Therapeutics Holdings, Inc. (NASDAQ: RANI), a clinical-stage biotherapeutics company, has announced a $3 million registered direct offering with a single institutional investor. The offering, which is expected to close on July 16, 2025, includes the sale of 4,354,000 shares of Class A common stock at $0.40 per share and pre-funded warrants to purchase 3,146,000 shares at $0.3999 per share [1]. The pre-funded warrants have an exercise price of $0.0001 per share.

The offering is being conducted through Maxim Group LLC as the sole placement agent and is made pursuant to an effective shelf registration statement on Form S-3. The gross proceeds to Rani Therapeutics from this offering are expected to be approximately $3.0 million, before deducting placement agent fees and other offering expenses [2].

Rani Therapeutics is developing the RaniPill capsule technology, which aims to replace subcutaneous injections or intravenous infusions of biologics with oral administration. The company has conducted several preclinical and clinical studies evaluating the safety, tolerability, and bioavailability of its technology [3].

The stock price of Rani Therapeutics has fallen by nearly 31% on Tuesday, following the announcement of the registered direct offering. The offering price of $0.40 per share represents a dramatic 91% decline from its $11 IPO price in 2021, indicating substantial shareholder value erosion [4].

The registered direct offering signals significant financial constraints for Rani Therapeutics. The company faces negative EBITDA of $46.55 million in the last twelve months and a current ratio of 0.88, indicating that short-term obligations exceed liquid assets [2]. The need for capital at such depressed valuation levels indicates significant financial distress.

The offering is expected to provide only minimal runway extension for a clinical-stage biotech where burn rates typically exceed $5-10 million per quarter. The deal structure—combining 4.35 million shares and 3.15 million pre-funded warrants with a nominal $0.0001 exercise price—essentially creates immediate dilution of approximately 13% based on their 58 million outstanding shares [4].

Rani Therapeutics is scheduled to present preclinical findings on its RaniPill capsule technology at the upcoming Endocrine Society Annual Meeting (ENDO 2025) in July 2025. The presentation will highlight data showcasing the bioequivalence between an oral bispecific GLP-1/GLP-2 receptor agonist delivered through Rani’s robotic pill technology and the traditional subcutaneous injection method, tested in canine models [3].

References:

[1] https://www.biospace.com/press-releases/rani-therapeutics-holdings-inc-announces-pricing-of-3-0-million-registered-direct-offering
[2] https://ca.investing.com/news/company-news/rani-therapeutics-secures-3-million-through-registered-direct-offering-93CH-4102510
[3] https://ih.advfn.com/market-news/article/12628/rani-therapeutics-shares-surge-after-endo-2025-presentation-announcement
[4] https://www.stocktitan.net/news/RANI/rani-therapeutics-holdings-inc-announces-pricing-of-3-0-million-bkhouzv7720r.html