By Chris Wack
PainReform, a clinical-stage therapeutics reformulation company, saw its shares surge 19% to $9.65 on Monday following the announcement of a definitive agreement for the purchase and sale of 167,000 of its ordinary shares. The registered direct offering, priced at $9 a share, also included an unregistered warrant issuance for up to 167,000 shares. The offering is expected to close on or about Tuesday and is projected to generate approximately $1.5 million in proceeds. The funds will be allocated towards research and development, clinical trials, working capital, and general corporate purposes.
Share Surge and New High
On Friday, PainReform experienced a remarkable 41% increase in its stock price, reaching its peak of $26.41 per share for the past year on the preceding Tuesday.
Simultaneously with the offering, the company will be conducting a private placement, issuing unregistered warrants. These warrants will allow investors to purchase up to 167,000 additional shares at an exercise price of $9 per share. The warrants become exercisable immediately upon issuance and will remain valid for a period of five years.
The anticipated $1.5 million in proceeds from this offering will be utilized to support various key initiatives, including research and development efforts, advancing clinical trials, fortifying working capital, and covering general corporate expenses.