BioRestorative Therapies, a leading stem cell-based therapies company, saw a significant drop in its stock price during Tuesday morning trading. The decline came after certain holders of warrants exercised them at a lower price and the company issued new warrants.
Stock Plummets by 60% to $1.37
As of 11:10 a.m. ET, BioRestorative Therapies’ stock fell by a staggering 60%, reaching a low of $1.37. This is the lowest value the shares have reached since March 2020 when they briefly touched $1.20.
Agreements with Holders Exercise Warrants
In an effort to address the situation, BioRestorative Therapies entered into agreements with certain holders to allow them to exercise approximately 3.35 million warrants at a reduced price of $2.33 per share.
Issuance of New Warrants
As part of the agreement, BioRestorative Therapies will issue new warrants to the exercising holders. These new warrants will grant the holders the right to purchase 2.5 million shares of the company’s stock at a price of $2.43 apiece. The term for exercising these new warrants spans over a five-year period.
Expected Capital Raise
BioRestorative Therapies anticipates raising approximately $8.1 million through the exercise of these warrants and the payment tied to the new warrants.