First Wave BioPharma, Inc. (FWBI), a company specializing in the development of targeted treatments for gastrointestinal diseases, announced on Monday that they have secured a deal with an institutional investor. This agreement involves a direct offering of 525,625 shares at a rate of $7.61 each.
Simultaneously, as part of a private placement, First Wave plans to issue warrants for the acquisition of up to 525,625 shares. These warrants, valid for five years, are priced at $7.48 per share and can be exercised immediately after issuance.
The direct offering is expected to generate gross proceeds of approximately $4 million. The closure of the deal is slated for on or around March 6th.
First Wave intends to allocate the net proceeds from this offering towards working capital and other general corporate needs. Roth Capital Partners is the exclusive placement agent overseeing the transaction.
As of the most recent trading updates, FWBI shares were down by 22.62% at $7.15 in pre-market trading on the Nasdaq.
