Longeveron shares saw a significant drop of 26%, falling to $1.20, following the company’s announcement of a definitive agreement for the issuance and sale of 1.4 million shares. This offering, priced at $1.62 per share, is registered under a direct offering.
Stock Hits 52-Week Low
During the session, Longeveron’s stock reached its lowest point of the year at $1.15, highlighting the company’s struggles. Over the past 12 months, the stock has experienced a substantial decline of 60%.
Additional Sale of Unregistered Warrants
In addition to the direct offering, Longeveron has agreed to sell unregistered warrants for up to 1.4 million shares as part of a concurrent private placement. These warrants, with an exercise price of $1.62 per share, will become exercisable immediately upon issuance and will remain valid for five-and-one-half years from the date of issuance.
Closing and Expected Proceeds
The offering is set to close by Tuesday. Once completed, Longeveron anticipates net proceeds of approximately $2.36 million after deducting fees and other expenses payable by the company. The funds are intended for working capital and general corporate purposes.