BURLINGTON, Mass. - Bone Biologics Corporation (NASDAQ:BBLG), a developer of orthobiologic products, announced today that it has reached a definitive agreement regarding the exercise of existing warrants for purchasing shares of its common stock.
The exercised warrants, which were initially issued in March 2024, will result in the acquisition of approximately 781,251 common shares at $2.43 each.
The transaction also includes the issuance of new unregistered warrants for an additional 1,562,502 shares of common stock. These warrants are immediately exercisable at $2.00 per share, with half of them having a five-year term and the other half an eighteen-month term from the issuance date.
H.C. Wainwright & Co. is serving as the exclusive placement agent for this offering, which is expected to close on August 2, 2024, subject to customary closing conditions. The company anticipates raising gross proceeds of around $2.1 million before deducting the placement agent's fees and other estimated offering expenses.
The funds raised are earmarked for clinical trials, maintaining and expanding Bone Biologics' patent portfolio, and general corporate purposes, including working capital.
InvestingPro Insights
As Bone Biologics Corporation (NASDAQ:BBLG) moves forward with its warrant exercise strategy to raise capital, a glance at the company's financial health through InvestingPro data provides context to the current situation. The company's market capitalization stands at a modest $2.99 million, reflecting the size and scale of the business in the competitive biotech landscape.
InvestingPro data highlights a significant return on investment over the short term, with a 36.68% one-week price total return and an even more impressive 122.95% one-month price total return. This suggests a recent surge in investor confidence or speculative interest, which may be related to the anticipated proceeds from the warrant exercise and the company's ongoing projects.
An InvestingPro Tip worth noting is the company's liquidity position, as Bone Biologics holds more cash than debt on its balance sheet, which is a positive sign for investors looking at the company's ability to manage its short-term obligations. However, it's important to consider that the company is not expected to be profitable this year, as analysts have indicated, and it has not been profitable over the last twelve months.
The company's stock is currently in overbought territory according to the Relative Strength Index (RSI), an indicator that could suggest a potential pullback in price or a consolidation period following the recent price increases.
For readers interested in a deeper dive into Bone Biologics' financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/BBLG. These tips can provide further guidance on investment decisions related to the company's stock.
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