Company: IMNN
Filing Date: 2025-05-19
Form Type: S-1/A
Source: 0001641172-25-011388
Chunk: 17

Company: Imunon, Inc.
Filing Date: 2025-05-19
Form: S-1/A
Chunk 17
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 our securities in this offering will pay a price per share that substantially exceeds the net tangible book value per share. As a result, investors purchasing shares of our Common Stock in this offering will incur immediate dilution of $0.26 per share, representing the difference between the assumed public offering price per share of Common Stock and accompanying common warrant and our pro forma net tangible book value per share as of March 31, 2025. To the extent outstanding options or warrants to purchase our Common Stock are exercised, new investors may incur further dilution. For more information on the dilution you may experience as a result of investing in this offering, see the section of this prospectus entitled “ Dilution.”

Stockholders will likely suffer substantial dilution when certain provisions in the common warrants are utilized.

If the common warrants are exercised by way of a zero exercise price exercise, assuming receipt of Stockholder Approval, such exercising holder will receive an aggregate number of shares equal to the product of (i) the aggregate number of shares of Common Stock that would be issuable upon a cash rather than a cashless exercise of the common warrant and (ii) 3.0, subject to a limitation on the aggregate number of shares of Common Stock potentially issuable in this offering of 90,000,000 shares of Common Stock. The number of shares issuable on the exercise of the common warrants under the zero exercise price provision increases as the stock price declines. Accordingly, it is highly unlikely that a holder of the common warrants would wish to pay an exercise price in cash to receive one share of Common Stock when they could instead choose the zero exercise price option and pay no cash to receive three shares of Common Stock. As a result, we will likely not receive, and do not expect to receive, any additional funds upon the exercise of the common warrants. If the zero exercise price provision is utilized, our stockholders may suffer substantial dilution.

On
the Adjustment Date, the exercise price of the common warrants will be reduced to the greater of the Floor Price and the lowest daily
dollar volume-weighted average price during the period beginning two full trading days prior to the Adjustment Date and ending on the
10th trading day after the Adjustment Date. Upon any such resulting adjustment of the exercise price of the common warrants, the number
of shares of Common Stock issuable under the common warrants will be increased such that the aggregate exercise price of a common warrant
(adjusted for any exercises by a holder prior to this adjustment) will remain unchanged following such adjustment.