The week did not end on the right note for Xenetic Biosciences Inc (NASDAQ:XBIO) as the biopharmaceutical firm saw its stock crash by as much as 23% on Friday. There was no fresh news about the company yesterday but earlier on in the week the company had made a key announcement that investors need to take a look into.
This past Wednesday the company announced that it successfully completed the private placement of as many as 4629630 shares of the Xenetic common stock for $2.70 each. The common shares were priced ‘at the market’ as per the rules of NASDAQ and were sold to a single institutional investors which is specifically focussed on the healthcare sector.
The company managed to raise as much as $12.5 million in the form of gross proceeds from this private placement. However, it should be noted that a range of expenses including the fees for the placement agent are going to be deducted from the sum. H.C. Wainwright & Co acted as the sole placement agent for the private placement. However, the move from Xenetic did not seem to have been welcomed by the company’s investors and it remains to be seen if it can stage a recovery next week.