Moleculin Prices $4.5M Registered Direct Offering And Concurrent Private Placement Priced At-The-Market
Portfolio Pulse from Benzinga Newsdesk
Moleculin Biotech, Inc. has announced a registered direct offering and concurrent private placement priced at-the-market, raising $4.5 million. The company will sell 7,044,836 shares of common stock or pre-funded warrants to an institutional investor and some executives and directors. Additionally, unregistered warrants to purchase up to 14,089,672 shares of common stock will be issued. The effective offering price is $0.64 per share/warrant for the institutional investor and $0.69 for the executives and directors.
December 21, 2023 | 6:05 am
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Moleculin Biotech's direct offering and private placement could dilute existing shares, potentially leading to a short-term negative impact on the stock price.
The announcement of a new stock offering typically leads to concerns about share dilution among existing shareholders. This can exert downward pressure on the stock price as the market absorbs the additional shares. The impact is often more pronounced in smaller biotech companies like Moleculin Biotech, where the offering represents a significant percentage of the existing market capitalization.
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