Biopharmaceutical company, Xenetic Biosciences (NASDAQ:XBIO), on July 31, 2021 closure of previously announced private placement. This would be with single healthcare-focused institutional investor for 4,629,630 shares of the common stock. Xenetic focuses on a personalized CAR T platform technology for targeting patient and tumor specific neoantigens.
The proceeds will be about $12.5 million before deducting placement agent fees and other offering expenses.The company issued to investor warrants for buying 4,629,630 shares of common stock. The warrants for purchasing 4,629,630 shares of common stock have price of $3.30 per share and will expire in three and one half years from the six month anniversary of the initial exercise date.
Potentially, gross proceeds of warrants will be about $15.3 million. The week however did not end right for the company as its shares plummeted by 23%. The firm had announced successful completion of private placement for $2.70 each. Shares were priced at market rate as per rules of NASDAQ.
H.C. Wainwright & Co was the sole placement agent for private placement. Yet, the move from the company did not get much appreciation from its investors and it needs to be monitored if there will be a recovery in the stock in the coming week.
XBIO stock is trading higher 3% to $4.20, well of session high of 4.50.
