Why Purple Biotech (PPBT) Shares Are Trading Lower
Portfolio Pulse from Henry Khederian
Purple Biotech (PPBT) shares dropped by 11.5% to $0.37 after the company announced the exercise of warrants for $2 million in gross proceeds. The exercise involves purchasing 5,633,509 ADSs at a reduced price of $0.36 per ADS, down from $1.25 to $20.00 per ADS. In return, Purple Biotech will issue new unregistered Series A-1 and A-2 warrants.
July 01, 2024 | 6:21 pm
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NEGATIVE IMPACT
Purple Biotech shares fell 11.5% after the company announced the exercise of warrants for $2 million in gross proceeds. The exercise price was significantly reduced, which may have led to the decline in share price.
The significant reduction in the exercise price of the warrants from $1.25-$20.00 to $0.36 per ADS likely caused investor concern, leading to a sharp decline in the stock price. The issuance of new unregistered warrants may also have contributed to the negative sentiment.
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