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PALO ALTO - 180 Life Sciences Corp. (NASDAQ:ATNF), whose stock has surged over 106% in the past six months according to InvestingPro data, announced Tuesday it has entered into a private investment in public equity (PIPE) transaction to raise approximately $425 million in gross proceeds, with plans to adopt a treasury policy focused on Ethereum’s native digital asset, Ether (ETH).
The company also intends to rebrand as ETHZilla Corporation following the transaction’s expected closing around August 1, 2025. With a current market capitalization of $17.57 million and trading near $3.36 per share, the stock appears overvalued based on InvestingPro Fair Value analysis.
The PIPE offering involves the sale of common stock and pre-funded warrants to over 60 institutional and crypto-native investors, including Harbour Island, Electric Capital, Polychain Capital, and several prominent Ethereum ecosystem founders. Investors will receive registration rights as part of the transaction.
According to the announcement, the company plans to use the net proceeds primarily to purchase ETH and for general corporate purposes. The current management team and a majority of directors will remain in place.
Electric Capital will serve as the external asset manager for the company and plans to implement an on-chain yield generation program designed to outperform traditional ETH staking through a combination of staking, lending, liquidity provisioning, and private agreements.
"We plan to execute a differentiated investment approach that will be designed to provide a straightforward opportunity for investors to participate in the growth of Ethereum through the public markets," said Blair Jordan, CEO of 180 Life Sciences.
The company also announced that Etherealize and a consortium of leading DeFi builders will act as a DeFi Council to provide input on treasury yield generation strategies.
Clear Street LLC served as financial advisor and exclusive placement agent for the PIPE offering, with The Loev Law Firm, PC and Reed Smith LLP acting as legal advisors to the company.
This information is based on a press release statement from 180 Life Sciences Corp.
In other recent news, 180 Life Sciences Corp. shareholders have approved a significant increase in authorized common stock, raising the number from 100 million to 1 billion shares. Additionally, the company has accelerated the vesting of equity awards for certain executives and directors, following the Board’s decision with recommendations from the Compensation Committee. This move affects options and restricted stock previously scheduled to vest in installments. On the intellectual property front, 180 Life Sciences has secured two new patents for its legacy portfolio, including one for methods to prevent post-operative cognitive decline. The company also received a Notice of Allowance for a method aimed at mitigating Post-Operative Cognitive Dysfunction using an anti-TNF Alpha monoclonal antibody. Furthermore, 180 Life Sciences has announced its 2025 Annual Meeting of Shareholders, scheduled for July 24, with the possibility of changes to the meeting date and record date. These developments come as the company continues its transition toward the iGaming sector while managing its biotechnology assets.
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