BERWYN, PA - Virpax Pharmaceuticals, Inc. (NASDAQ:VRPX), a company specializing in pharmaceutical preparations, announced the appointment of Mr. Usama Chaudhry as its new Chief Financial Officer (CFO) effective from Monday. The appointment comes as part of the company's efforts to strengthen its financial strategy and reporting operations.
Mr. Chaudhry, who will be overseeing the company's financial reporting, budgeting, and compliance functions, brings a wealth of experience to Virpax Pharmaceuticals. With a background that includes extensive expertise in corporate development, investor relations, and corporate governance, he is well-positioned to support the company's financial strategies. His track record of aligning strategic objectives with cost-control measures is expected to enhance the company's organizational performance.
Mr. Chaudhry holds a Bachelor of Commerce degree, majoring in accounting, from the University of Northern British Columbia, and currently serves on several public company boards. The company disclosed that there are no familial ties between Mr. Chaudhry and any director or executive officer at Virpax Pharmaceuticals. Additionally, there have been no legal proceedings involving Mr. Chaudhry in the past ten years that are required to be disclosed.
The contractual agreement between Virpax Pharmaceuticals and Chaudhry U Consulting Inc., represented by Mr. Chaudhry, includes an annual fee of $180,000 to be paid monthly, along with reimbursement for reasonable, pre-approved expenses related to the performance of services.
The announcement is based on a recent SEC filing, which also includes the company's financial statements and exhibits. This leadership change comes as the company continues to focus on the development and commercialization of its pharmaceutical products.
Investors and stakeholders of Virpax Pharmaceuticals may view the full terms of the agreement with Chaudhry U Consulting Inc. in the exhibit filed with the SEC. The company's shares are traded on The Nasdaq Capital Market under the ticker symbol VRPX.
In other recent news, Virpax Pharmaceuticals announced a $5 million public offering, managed by Spartan Capital Securities, with proceeds earmarked for its new drug filing for Probudur and other corporate purposes.
Concurrently, the company faces potential delisting from Nasdaq due to non-compliance with the minimum stockholders’ equity requirement. Virpax Pharmaceuticals has also welcomed Katharyn Field as Vice President and principal executive officer, further strengthening its executive team.
The company managed to repay a $2.525 million senior secured promissory note ahead of schedule and issued nearly two million new shares of common stock, generating an estimated $2.7 million in proceeds.
In a strategic move, Virpax Pharmaceuticals extended an agreement with a key institutional investor for exclusive negotiation rights on subsequent financing deals worth a minimum of $5 million.
Recent developments also include a change in the company's audit firm, with EisnerAmper LLP resigning and Bush & Associated CPA LLC taking over. Changes in the board were also noted, with the immediate resignations of Dr. Vanila M. Singh and Eric Floyd.
Lastly, Virpax Pharmaceuticals plans to file an Investigational New Drug Application for its pain management product, Probudur, by the end of the year. These are among the recent developments shaping Virpax Pharmaceuticals' trajectory.
InvestingPro Insights
The appointment of Mr. Usama Chaudhry as CFO comes at a critical time for Virpax Pharmaceuticals, as recent financial data from InvestingPro reveals significant challenges. The company's market capitalization stands at a modest $3.23 million, reflecting investor caution. This sentiment is underscored by the stock's dramatic decline, with a one-year price total return of -89.83% as of the latest data.
InvestingPro Tips highlight that Virpax is not profitable over the last twelve months and suffers from weak gross profit margins. These factors likely contribute to the company's decision to bring in new financial leadership to navigate its current fiscal situation. The appointment of Mr. Chaudhry, with his expertise in cost-control measures, aligns with the need to address these financial challenges.
It's worth noting that InvestingPro offers 6 additional tips for Virpax Pharmaceuticals, providing investors with a more comprehensive analysis of the company's financial health and market position. Those seeking a deeper understanding of Virpax's financial outlook may find value in exploring these additional insights on the InvestingPro platform.
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