PainReform Announces Warrant Exercise
PainReform Ltd. (Nasdaq: PRFX) has unveiled a significant development. The clinical-stage pharmaceutical company has entered into definitive agreements for the immediate exercise of outstanding warrants. PainReform will exercise the warrants, originally issued in December 2023 and April 2024, at a reduced price. The company has lowered the warrant exercise price from $4.80 per share to $1.60 per share.
Stock Reaction
Following the announcement of the warrant exercise, the stock of PainReform has experienced a noticeable decline. Investors are reacting to the news, which has caused the stock price to drop significantly.
Details of PainReform Warrant Exercise
H.C. Wainwright & Co. is serving as the exclusive placement agent for this offering. Under the terms, the Company will issue new unregistered warrants. These new warrants will allow for the purchase of up to 1,978,600 ordinary shares. The new warrants will have an exercise price of $1.60 per share, and will be exercisable immediately upon issuance. They will expire five years from the issuance date.
Financial Impact of PainReform Warrant Exercise
The exercise of these warrants is expected to generate approximately $1.58 million in gross proceeds. This amount is before deducting placement agent fees and offering expenses. PainReform plans to use the net proceeds from this transaction for general corporate purposes.
Registration and Compliance
The company offered the new warrants in a private placement, using an exemption from the registration requirements of the Securities Act of 1933, as amended. As a result, the company has not registered the new warrants and the ordinary shares issuable upon their exercise under the Securities Act, so they cannot be offered or sold in the U.S. without proper registration with the SEC or an applicable exemption.
PainReform has committed to filing a registration statement with the SEC. This will cover the resale of the ordinary shares that are issuable upon the exercise of the new warrants.
The recent warrant exercise announcement by PainReform has led to a decline in its stock. Investors are closely watching the developments as the Company prepares to close the offering. The issuance of new warrants and the use of proceeds will be key areas to watch in the coming weeks.
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