By Chris Wack
Seelos Therapeutics, a pharmaceutical company, saw a significant decrease in its shares, reaching a 52-week low of just 94 cents. The decline comes after the company entered into a registered direct offering with select institutional investors. The offering involves the purchase and sale of 3.4 million shares, along with unregistered common warrants that can be exercised for up to 3.4 million shares.
Share value and offering details
Over the past year, Seelos Therapeutics' stock has plummeted by a staggering 96%. The registered direct offering is set to occur at a combined purchase price of $1.175 per share. Furthermore, common warrants will be priced at-the-market under Nasdaq rules.
The common warrants come with an exercise price of $1.05 per share and will be immediately exercisable upon issuance. They will remain valid for five years from the initial exercise date.
Expected closing date and proceeds
The offering is expected to conclude on or about Tuesday. It is anticipated that the company will benefit from approximately $4 million in proceeds resulting from the offering.
Application of proceeds
Seelos Therapeutics plans to allocate the funds generated from the offering for general corporate purposes. Additionally, it aims to utilize the funds for advancing the development of its product candidates. The company also intends to make periodic principal and interest payments under, or potentially repay a portion of, its outstanding convertible promissory note.