STAFFORD, Texas - Greenwich LifeSciences, Inc. (NASDAQ:GLSI), a biopharmaceutical company in the clinical stage, announced today its entry into a securities purchase agreement with CEO Snehal Patel. The agreement outlines the sale of 174,825 shares of common stock at $14.30 per share in a private placement, with an expected closing date on or about June 18, 2024.
This transaction is anticipated to generate approximately $2.5 million in gross proceeds for Greenwich before offering expenses. The funds are earmarked for clinical development and general working capital needs. Notably, the private placement will not incur investment banking fees.
Patel, who is also participating as a buyer in the deal, has consented to a one-year lock-up period for the shares acquired. The shares offered in this private placement have not been registered under the Securities Act of 1933 or any state securities laws. Consequently, they may not be sold in the United States absent registration or an exemption from such requirements.
The offering is conducted under Section 4(a)(2) of the Securities Act and/or Regulation D, which allows for the sale of securities without public registration under certain conditions.
Greenwich LifeSciences is currently advancing its Phase III clinical trial, FLAMINGO-01, to evaluate GLSI-100, an immunotherapy designed to prevent the recurrence of breast cancer. The treatment targets the HER2 protein, which is overexpressed in a significant proportion of breast cancer cases.
This news article is based on a press release statement from Greenwich LifeSciences, Inc.
InvestingPro Insights
As Greenwich LifeSciences, Inc. (NASDAQ:GLSI) navigates its path through the clinical stages and secures additional funding through private placements, investors are keeping a close eye on the company's financial health and market performance. According to InvestingPro, GLSI's market capitalization stands at a modest $191.27 million, reflecting the size and speculative nature of the clinical-stage biopharmaceutical company.
An important metric that stands out for GLSI is its Price / Book ratio, which, as of the last twelve months leading up to Q1 2024, is at a high 37.35. This suggests that the market values the company significantly higher than its net asset value, which can be common for firms with high growth potential or unique intellectual property, yet it also indicates an elevated valuation that may concern value-focused investors.
InvestingPro Tips highlight that GLSI has experienced a large price uptick over the last six months, with a 36.87% return, and a year-to-date price total return of 41.16%, underscoring a strong recent performance in the stock market. However, potential investors should be aware of the company's volatility, as indicated by a 3-month price total return of -10.05%, and the fact that GLSI does not pay dividends, which might be a consideration for income-focused portfolios.
For those considering an investment in Greenwich LifeSciences, it is worth noting that the company has been non-profitable over the last twelve months, with an EBITDA of -$9.62 million and a negative return on assets of -106.03%. This is typical for clinical-stage biopharmaceutical companies that are investing heavily in research and development before reaching profitability.
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