Fortress Biotech Inc (NASDAQ:FBIO) shares are trading lower by over 18% after it announced the pricing of a $11 million registered direct offering.
The company entered a deal for the issuance and sale of 3.30 million common shares and warrants to purchase up to 3.30 million shares of common stock at a combined offering price of $3.33 per share and accompanying warrant priced at-the-market under Nasdaq rules.
The warrants have an exercise price of $3.21 per share, are immediately exercisable, and will expire five years following the date of issuance.
Roth Capital Partners is acting as the exclusive placement agent for the offering, which is expected to close on or about January 3, 2024, subject to the satisfaction of customary closing conditions.
Fortress expects to use the net proceeds for its operations, including, but not limited to, general corporate purposes, which may include research and development expenditures, clinical trial expenditures, license or acquisition of new products, and working capital.
In November, the company closed a $10 million public offering.
Price Action: FBIO shares are down by over 18.64% at $3.1650 on the last check Friday.
Photo via Company
