Xenetic BioSciences Inc. (NASDAQ:XBIO) jumped 14%. Recently, the company signed a sale and purchased a definitive agreement to purchase 4.63 million of its common shares by a healthcare-focused institutional investor. The company is offering the shares at $2.7 per share in an at-the-market private placement under the Nasdaq rules.
Equally, the company agreed to provide the investor share purchase warrants to buy 4.63 million common shares. Notably, the contracts have an exercise share price of $3.3 and are exercisable immediately. They hold an expiry of three and one-half years from the issuance date.
The company expects gross proceeds of $12.5 million before subtracting offering expenses and agent placement fees. The total warrants, once fully exercised, will generate around $15.3 million in proceeds, but there is no assurance that the investor will exercise the warrants. Instead, the company will use the offering proceeds for working capital uses. So in the coming weeks, XBIO is a stock worth keeping an eye on.
On Tuesday, XBIO stock rose 13.87% at $3.94 with more than 6.83 million shares, compared to its average volume of 9.29 million shares. The stock has moved within a range of $3.4600 – 4.3400 after opening the trade at $3.53.