Histogen Inc (NASDAQ:HSTO) is taking a hit in the pre-market session, cooling off after a 12% surge in the past week.
Major Trigger:
Histogen Announces $6.5 Million Registered Direct Offering Priced At-the-Market under Nasdaq Rules
Key Highlights:
- announced that it has entered into definitive agreements with several institutional and accredited investors, for the purchase and sale of 5,977,300 shares of its common stock, at a purchase price of $1.10 per share, in a registered direct offering priced at-the-market under Nasdaq rules.
- Histogen also agreed to issue to the investors, in a concurrent private placement, unregistered warrants to purchase up to an aggregate of 4,781,840 shares of its common stock. The closing of the offering is expected to occur on or about June 9, 2021, subject to the satisfaction of customary closing conditions.
- H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
- The warrants have an exercise price of $1.00 per share, will be exercisable immediately upon issuance and will expire five and one-half years from the date of issuance.
- The gross proceeds from this offering are expected to be approximately $6.5 million, before deducting placement agent’s fees and other offering expenses. Histogen intends to use the net proceeds from this offering for working capital and general corporate purposes, including expenses related to the clinical development of its pipeline programs, further research and development, capital expenditures and general and administrative expenses.
- The shares of common stock (but not the warrants or the shares of common stock underlying the warrants) are being offered by Histogen pursuant to a “shelf” registration statement on Form S-3 (File No. 333-248074) previously filed with the Securities and Exchange Commission (the “SEC”) on August 17, 2020 and declared effective by the SEC on August 26, 2020.
Market Reaction
As of 7:05, HSTO is trading at $1, down 7.40%. So far more than 111K shares have exchanged hands.
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