Biopharmaceutical company Xenetics Biosciences (NASDAQ:XBIO) on July 26, 2021 announced entering into definite agreement with just one healthcare focused institutional investor for buying 4,629,630 shares of its common stock at a purchase price per share of of $2.70, in a private placement.
Xenetics, which focuses on personalized CAR T platform technology engineered to target patient- and tumor-specific neoantigens, has also accepted to issue warrants for buying 4,629,630 shares of common stock. The warrants for buying common stock have exercise price of $3.30 per share and they expire three and one half years from date of registration. The closing of the transaction will happen before July 28, 2021.
The company will receive gross proceeds to the tune of $12.5 million, before deducting placement agent fees as well as other offering expenses. If fully exercised on cash basis, gross proceeds from warrants will be $15.3 million and the company will be utilising proceeds for general working capital purposes.
The securities were given in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) and Regulation D promulgated.
Xenetics is making progress on cell-based therapeutics targeting the unique B-cell receptor and its platform has the potential for fueling strong robust pipeline of therapeutic assets targeting high-value oncology indications.
Market Reaction:
As of 1:14, XBIO stock surged 23% at $3.22 with more than 102.76 million shares, compared to its average volume of 5.21 million shares. The stock has moved within a range of $3.0000 – 4.0600 after opening the trade at $3.29. Over the past 52-week, the stock has been trading within a range of $0.7600 – 5.8500.
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