Mustang Bio (NASDAQ: MBIO) stock surged in early Monday trade following the completion of a $2.5 million registered direct offering under Nasdaq rules.
Mustang Bio has announced the closing of its previously disclosed registered direct offering, priced at the market under Nasdaq rules. The offering involved the issuance, and sale of 6,130,000 shares of its common stock at $0.41 per share.
Concurrently, in a private placement, Mustang issued unregistered warrants to purchase up to 6,130,000 shares of its common stock, with an exercise price of $0.41 per share. These warrants become exercisable beginning on the effective date of stockholder approval of the issuance of the shares upon exercise of the warrants. The warrants will expire five years from the date of stockholder approval.
H.C. Wainwright & Co. served as the exclusive placement agent for the offering.
The gross proceeds generated from the offering amount to approximately $2.5 million, before accounting for placement agent fees and other associated offering expenses. Mustang intends to utilize the net proceeds from this transaction for working capital and general corporate purposes.
Mustang Bio (NASDAQ: MBIO) Stock Price Action
As of 10:33 a.m. (Eastern Time) Monday, MBIO stock traded at $0.6223, marking a 12.08% increase compared to the previous trading session.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
