Panbela Therapeutics, a clinical stage biopharmaceutical company focused on pioneering treatments for patients with critical unmet medical needs, revealed today that it has reached agreements with specific holders of its existing warrants, enabling them to exercise 2,130,000 shares of its common stock at a reduced price of $0.78 per share. In return, they will receive new warrants as outlined below. This development triggered an abrupt drop in the stock value of Panbela Therapeutics.
At the time of this publication, Panbela Therapeutics Inc stock (PBLA) has witnessed a decline.
Panbela Therapeutics Inc
Current Price: $0.70
Change : -0.25
Change (%): (-26.37%)
Volume: 3.3M
Source: Tomorrow Events Market Data
The anticipated total gross proceeds from the existing warrant exercise are estimated to reach approximately $1.9 million, exclusive of financial advisory fees. The adjustment to the warrant exercise price and the issuance of the new warrants were structured as an at-market transaction in compliance with Nasdaq regulations.
Roth Capital Partners is overseeing the financial advisory role for this transaction on behalf of the company.
The common stock shares that may be acquired upon exercising the existing warrants are duly registered under a Form S-1 registration statement (File No.333-271729) that was declared effective by the Securities and Exchange Commission (“SEC”) on June 15, 2023.
In exchange for the immediate cash-based exercise of the existing warrants and a payment of $0.125 per underlying share, the exercising holders will gain new warrants for purchasing common stock through a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”). Subject to obtaining stockholder approval for the issuance of the underlying common stock, the new warrants will allow for the purchase of a combined total of 4,260,000 common stock shares, at an exercise price of $0.78 per share, with a five-year exercise term post-stockholder approval. Both the new warrants and the underlying common stock have not been registered under the Securities Act of 1933, as amended, or relevant state securities laws.
Consequently, the securities may only be offered or sold in the United States in accordance with an effective registration statement or an applicable exemption from the registration requisites of the Securities Act and pertinent state securities laws. As part of this transaction, the company has committed to filing a resale registration statement with the SEC to register the resale of the common stock shares underlying the new warrants.
