Fortress Biotech, Inc. (NASDAQ:FBIO), a Delaware-based pharmaceutical company, has issued new shares of its common stock to former holders of convertible preferred stock in a subsidiary, as detailed in a recent SEC Form 8-K filing. The transaction took place on Thursday, June 27, 2024, fulfilling obligations under a 2022 agreement.
The issuance involved 2,028,345 shares of common stock to the former holders of the 8% Cumulative Convertible Class B Preferred Stock of Urica Therapeutics, Inc., a Fortress subsidiary. This action was in accordance with the terms of a Dividend Payment and Exchange Agreement dated December 27, 2022, between Fortress and Urica. The agreement was initially part of an inducement to investors in a private offering by Urica.
In lieu of cash dividends, Fortress elected to distribute the shares and also paid a total of $20,747.62 for fractional shares and accumulated unpaid dividends. The shares issued were exempt from registration under the Securities Act of 1933, according to Section 4(a), and are not to be sold or transferred without registration or exemption. However, the resale of these shares by the former preferred stockholders was registered under the Securities Act, with the registration statement declared effective on the same day of the stock issuance.
The transaction reflects Fortress Biotech's strategy of managing its equity and fulfilling its financial obligations to investors. The company, headquartered in Bay Harbor Islands, Florida, operates in the pharmaceutical preparations industry under the leadership of Lindsay (NYSE:LNN) A. Rosenwald, M.D., Chairman, President, and Chief Executive Officer. This report is based on the company's official statement filed with the SEC.
In other recent news, Mustang Bio (NASDAQ:MBIO) announced an anticipated gross proceeds of $2.5 million from a stock offering and concurrent private placement. The offering, facilitated by H.C. Wainwright & Co., is expected to close around June 21, 2024. The company also reported a 90% response rate in its Phase 1/2 clinical trial of MB-106, a CAR T-cell therapy for Waldenstrom macroglobulinemia, a rare blood cancer.
In related developments, H.C. Wainwright significantly increased its stock target for Fortress Biotech from $10.00 to $24.00, reflecting an optimistic outlook for the company. Meanwhile, Roth/MKM maintained a Buy rating on Fortress Biotech, noting the company's 2023 revenue of $84.5 million, an increase from the $75.7 million reported in 2022.
These recent developments reflect the ongoing activities of both Mustang Bio and Fortress Biotech. It's important to note that this information is based on recent news and data, and it is subject to change as new information becomes available.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.