Palatin Technologies, a biopharmaceutical company, has recently announced a definitive agreement with an institutional investor regarding the issuance and sale of 2.4 million shares at $2.12 each. As a result, the company’s shares have dipped by 13% to $2.08.
Stock Performance and Private Placement Warrants
Following the closing of Friday’s session with a 13% increase, Palatin Technologies’ stock has experienced a 53% decline in the past year. In addition to the share issuance, the company has also agreed to offer private placement warrants, allowing the purchase of up to 2.4 million shares at a price of $2.12 per share.
Details of the Warrants
The issuance of warrants is contingent on stockholder approval, but if deemed unnecessary, they will become exercisable six months after the closing date. The warrants will remain valid for five and a half years from the closing date.
Expected Timeline and Proceeds
The offering is anticipated to close around Tuesday, and Palatin Technologies expects to raise approximately $5 million from the issuance. The proceeds will be allocated towards general corporate purposes.