After soaring 45% yesterday, Biophytis (NASDAQ:BPTS) shares are down nearly 8% at the time of writing. This came after the biotechnology company entered into agreements for the purchase and sale of roughly 1.33 million units for gross proceeds of about $3.8 million.
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Each unit includes one American Depository Share (ADS) or one pre-funded warrant with the right to acquire one ADS and one ordinary warrant to acquire one ADS at $2.85 per unit.
Further, each ADS provides the right to receive one hundred new shares of the company. While ADSs and pre-funded warrants make up the registered direct offering, the ordinary warrants are part of a concurrent private placement.
The pre-funded warrants can be exercised immediately after issuance and have an expiry period of 10 years. The ordinary warrants come at an exercise price of $3 per ADS, can be exercised immediately after issuance, and expire three years after issuance.
The offering is anticipated to close on or about July 21, and Biophytis plans to use the funds raised for working capital needs, general corporate purposes, and to advance its clinical pipeline. Interestingly, the public offering comes after yesterday, Biophytis teamed up with pharmaceutical company SEQUENS for the production of the active compound in Sarconeos.
Sarconeos is Biophytis’ lead candidate and is currently under development for three different indications – sarcopenia, Duchenne Muscular Dystrophy, and severe forms of COVID-19.
With today’s price drop, Biophytis shares have now corrected nearly 64% over the past year.
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