Reviva Pharmaceuticals Holdings (NASDAQ:RVPH) is one moving down sharply in pre-market trading on Thursday.
Reviva Announces Pricing of Upsized $30 Million Underwritten Public Offering
- announced today the pricing of its upsized underwritten public offering of 8,000,000 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and accompanying investor warrants to purchase up to 6,000,000 shares of common stock.
- Each share of common stock (or pre-funded warrant in lieu thereof) is being sold together with one investor warrant to purchase 0.75 shares of common stock at a combined effective price of $3.75. The investor warrants will be immediately exercisable at an exercise price of $4.125 per share of common stock and will expire five years from the date of issuance.
- The offering is expected to close on June 1, 2021, subject to customary closing conditions. In addition, Reviva has granted the underwriters a 45-day option to purchase an additional 1,200,000 shares of common stock and/or investor warrants to purchase up to an additional 900,000 shares of common stock at the public offering price less discounts and commissions.
- Maxim Group LLC is acting as the book-running manager and Joseph Gunnar & Co. is acting as a co-manager in connection with the offering.
- The gross proceeds, before underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $30 million. Reviva intends to use the net proceeds from the offering to continue the clinical development of brilaroxazine (RP5063) for the treatment of acute and maintenance schizophrenia, and for working capital and other general corporate purposes.
As of 7:58, RVPH is trading at $3.93 down 49 cents or 11.10%. So far more than 11K shares have exchanged hands.