Company: IMNN
Filing Date: 2025-05-30
Form Type: PRE 14A
Source: 0001641172-25-013068
Chunk: 48

Company: Imunon, Inc.
Filing Date: 2025-05-30
Form: PRE 14A
Chunk 48
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 The Placement Agent Warrants have substantially the same terms as the Common Warrants.

Effect of the Issuance of the Common Stock Underlying the Pre-Funded Warrants and Warrants

The potential issuance of the shares of common stock underlying the Pre-Funded Warrants and Warrants would result in an increase in the number of shares of common stock outstanding, and our stockholders would incur dilution of their percentage ownership to the extent that the holders thereof exercise their warrants.

Reasons for Nasdaq Stockholder Approval

Nasdaq Listing Rule 5635(d) requires us to obtain stockholder approval prior to the issuance of securities in connection with a transaction other than a public offering involving the sale, issuance or potential issuance by us of our common stock (or securities convertible into or exercisable for our common stock) at a price less than the Minimum Price. In the case of the Private Placement, the 20% threshold is determined based on the shares of our common stock outstanding immediately preceding the signing of the Purchase Agreement, which we signed on May 23, 2025.

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Immediately prior to the execution of the Purchase Agreement, we had 17,541,732 shares of common stock issued and outstanding, including 2,921,000 shares of common stock issued on May 13, 2025, pursuant to an exchange agreement entered into with holders of certain warrants issued on August 1, 2024. Therefore, the potential issuance of 14,805,557 Warrant Shares (consisting of 14,444,446 Common Warrant Shares and 361,111 Placement Agent Warrant Shares) would have constituted greater than 20% of the shares of common stock outstanding immediately prior to the execution of the Purchase Agreement. We are seeking stockholder approval under Nasdaq Listing Rule 5635(d) for the sale, issuance or potential issuance by us of our common stock (or securities exercisable for our common stock) in excess of 20% of the shares of common stock outstanding immediately prior to the execution of the Purchase Agreement.

We cannot predict whether or when the Warrant holders will exercise their Warrants. For these reasons, we are unable to accurately forecast or predict with any certainty the total amount of Warrant Shares that may ultimately be issued. Under certain circumstances, however, it is possible, that we will issue more than 20% of our outstanding shares of common stock to the Warrant holders. Therefore, we are seeking stockholder approval under this proposal to issue more than 20