180 Life Sciences Corp. has set the price for its $2.9 million securities offering to raise funds through direct stock sales and private warrant placements. The biotech company, which is shifting more towards entertainment and online gaming, said institutional investors will buy 1.2 million common stock shares in a direct offering. This approach follows Nasdaq’s pricing rules.
Biotech Firm Announces $2.9M Offering, Pairing Stock Sales with Private Warrants
On top of the stock offering, the company revealed plans to have a private placement at the same time. This deal will give investors warrants to buy 1.2 million more shares. Each share and its warrant will cost $2.41 together. The warrants will have an exercise price of $2.28 per share. Investors can use these warrants right away, and they will stay valid for five and a half years after they are issued.
Based on estimates, the combined offerings are expected to bring in around $2.9 million in gross proceeds, but the final amount will be lower after taking out placement fees and other costs. The company thinks the deals will be done by December 30, 2024, as long as the usual closing conditions are met. Maxim Group is acting as the only placement agent for this project.
The company is carrying out the direct offering under a shelf registration statement that has been in effect since June 2022. This statement was approved and submitted to the US Securities and Exchange Commission (SEC). The firm mentioned that it will handle sales for this offering through a prospectus supplement connected to the registration statement. At the same time, the warrants in the private placement do not have registration.
This change comes after several key moves at 180 Life Sciences. Shareholders gave the green light to tweak the company’s incentive plan and voted in new board members at the 2024 yearly meeting. It is worth mentioning that these tweaks allow the Series B Convertible Preferred Stock to be turned into common shares. This shift gives the company more room to handle its outstanding warrants and boost its financial flexibility.
180 Life Sciences is branching out its business focusing more on iGaming and blockchain. This change shows the company’s plan to keep up with new trends and use its own technology to grow. Even though its stock prices have dropped by over 52% this year, the company still feels positive about its future in the changing world of digital entertainment.
Source : GamblingNews