Mustang Bio Announces $4.4M Registered Direct Offering Of 2,588,236 Of Its Shares Of Common Stock At A Price Of $1.70/Share, Priced At-the-Market Under Nasdaq Rules
Portfolio Pulse from Benzinga Newsdesk
Mustang Bio, Inc. (NASDAQ:MBIO) has announced a registered direct offering of 2,588,236 of its common shares at a price of $1.70 per share, priced at-the-market under Nasdaq rules. The company also plans to issue unregistered warrants to purchase up to an aggregate of 2,588,236 shares of its common stock. The offering is expected to close on October 30, 2023. The gross proceeds from the offering are expected to be approximately $4.4 million, which will be used for working capital and general corporate purposes.
October 26, 2023 | 4:31 pm
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NEUTRAL IMPACT
Mustang Bio's registered direct offering of its common shares and issuance of unregistered warrants could potentially dilute existing shareholders' equity. However, the proceeds from the offering will provide the company with additional working capital.
The issuance of new shares and warrants can lead to dilution of existing shareholders' equity, which could potentially put downward pressure on the stock price. However, the additional capital raised from the offering will provide the company with more resources for its operations, which could have a positive impact in the long term.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100