BRISBANE, CALIFORNIA - GT Biopharma, Inc. (NASDAQ:GTBP) has initiated a registered direct offering and concurrent private placement that is expected to raise approximately $3.2 million in gross proceeds, the company announced today. In the direct offering, GT Biopharma will sell 740,000 shares of common stock at a price of $4.35 per share, with the offering priced at-the-market under Nasdaq rules.
Alongside this, the biopharmaceutical firm is issuing warrants in a private placement that allows the purchase of an additional 740,000 shares of common stock at the same price of $4.35 each. These warrants can be exercised immediately and will be valid for a five-year term from the date of issuance.
The closing of the offering is anticipated to take place on or about May 23, 2024, contingent upon customary closing conditions being met. Roth Capital Partners has been named as the exclusive placement agent for the offering.
The proceeds from this offering, before subtracting the placement agent's fees and other related expenses, are slated for general corporate purposes.
The securities in the public offering are available due to a shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission (SEC) and declared effective on October 20, 2022. The offering is made through a prospectus supplement, which is part of the effective registration statement.
The warrants, along with the shares of common stock they represent, are being offered privately in compliance with Section 4(a)(2) of the Securities Act of 1933 and Regulation D promulgated thereunder. They have not been registered under the Act or any state securities laws, hence they cannot be offered or sold in the United States without registration or an exemption from registration requirements.
GT Biopharma is a clinical stage biopharmaceutical company that focuses on the development and commercialization of immuno-oncology therapeutic products based on its proprietary TriKE® NK cell engager platform. The technology aims to amplify the cancer-destroying capabilities of a patient's natural killer cells.
This announcement is based on a press release statement and should not be considered an offer to sell or a solicitation of an offer to buy these securities.
InvestingPro Insights
As GT Biopharma, Inc. (NASDAQ:GTBP) forges ahead with its capital-raising efforts, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, GT Biopharma currently holds a market capitalization of $10.77 million, which is indicative of its size in the biopharmaceutical industry. The company's Price/Book ratio, as of the last twelve months leading up to Q1 2024, stands at 2.03, suggesting how the market values the company relative to its book value.
Investors looking for short-term gains might be intrigued by GTBP's significant price total return of 144.26% over the last week and 111.38% over the past month. These figures highlight the stock's recent bullish behavior, which is further supported by an InvestingPro Tip noting that the stock has experienced strong returns over the last three months.
Still, those interested in the long-term prospects should note that GTBP's net income is expected to drop this year, and analysts do not anticipate the company will be profitable within this timeframe. This aligns with another InvestingPro Tip indicating that the stock is currently in overbought territory according to the Relative Strength Index (RSI), which may suggest caution for potential buyers.
For investors seeking a deeper dive into GT Biopharma's financials and market potential, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available for GTBP at Investing.com/pro/GTBP. To access these valuable tips and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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