Shattuck Labs (STTK) stock rocketed higher on Tuesday after the clinical-stage biotechnology company announced an oversubscribed private placement. An agreement with certain accredited investors allows for the purchase of up to 15,225,158 shares of STTK stock, pre-funded warrants for 37,410,188 shares, and common warrants for 52,635,346 shares.
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The units in this private placement are being sold for $0.8677 each, with the pre-funded warrants being sold for $0.8676. The pre-funded warrants have an exercise price of $0.0001 and expire once exercised in full. The common warrants have an exercise price of $1.0846 and will expire 30 days after data from the single ascending dose and multiple ascending dose portions of the company’s Phase 1 clinical trial of SL-325 and the design of the planned Phase 2 clinical trial have been made public.
Shattuck Labs expects $46 million in gross proceeds from the private placement, with another $57 million available if the warrants are exercised in full. It has also granted some buyers in this offering the right to designate directors to the company’s board of directors. The company last named new directors in July.
STTK Stock Movement Today
Shattuck Labs stock was up 36.66% in pre-market trading on Tuesday, following a 1.46% increase Monday. However, the shares have fallen 38.52% year-to-date and 75.96% over the past 12 months. Today’s rally came with heavy trading, as some 28 million shares changed hands, compared to a three-month daily average of about 368,000 units.
Is Shattuck Labs Stock a Buy, Sell, or Hold?
Turning to Wall Street, coverage of Shattuck Labs stock is thin. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates STTK stock a Neutral (42) with a $1 price target, representing a potential 34.64% upside for the shares. It cites “significant financial challenges, with declining revenues and negative profitability” as reasons for this stance.
