Creative Medical Technology secures $3.7 million through warrants

PHOENIX - Creative Medical Technology Holdings, Inc. (NASDAQ:CELZ), a biotech company focusing on regenerative medicine, has finalized agreements for the immediate exercise of warrants issued in October 2024. These warrants, which will allow holders to purchase up to 837,104 shares of common stock at $4.42 each, are expected to generate roughly $3.7 million in gross proceeds before financial advisory fees are deducted. Roth Capital Partners is advising the company on this transaction. The company’s stock has shown remarkable momentum, with InvestingPro data showing a 179% return year-to-date and a market capitalization of $11.28 million.

The exercised warrants are linked to an effective registration statement on Form S-1, and the transaction is set to close today, subject to customary closing conditions. In return for the cash exercise of these warrants, Creative Medical Technology will issue new unregistered warrants for up to 1,674,208 shares of common stock, exercisable at $3.75 per share for five years following shareholder approval. According to InvestingPro analysis, the stock currently appears overvalued compared to its Fair Value, with significant price volatility noted as a key characteristic.

The company aims to use the net proceeds for working capital and general corporate purposes. These new warrants were offered in a private placement under an exemption from the registration requirements of the Securities Act of 1933. They, along with the shares issuable upon exercise, have not been registered under the Act and cannot be offered or sold in the U.S. without registration with the SEC or an applicable exemption.

Creative Medical Technology has committed to filing a registration statement with the SEC for the resale of shares issuable upon exercise of the new warrants. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.

Creative Medical Technology Holdings, Inc. specializes in developing biological therapeutics in various medical fields and is traded on the NASDAQ under the ticker symbol CELZ. While the company maintains a strong balance sheet with more cash than debt, InvestingPro data reveals an EBITDA of -$5.52 million in the last twelve months, with the next earnings report expected on March 24, 2025. This news release includes forward-looking statements that involve inherent risks and uncertainties, and actual results could differ materially from those anticipated. For deeper insights into CELZ’s financial health and 15+ additional ProTips, consider exploring InvestingPro’s comprehensive analysis platform.

The information presented in this article is based on a press release statement issued by Creative Medical Technology Holdings, Inc.

In other recent news, Creative Medical Technology Holdings, Inc. reported promising one-year follow-up results from its AlloStem™ (CELZ-201) Type 2 Diabetes pilot study. The study demonstrated an 80% efficacy rate in reducing insulin dependency and stabilizing hemoglobin A1c levels in late-stage patients, with no serious adverse effects reported. The company also announced a strategic collaboration with Greenstone Biosciences Inc. to integrate Artificial Intelligence (AI) in advancing its stem cell platform for diabetes treatment. This partnership aims to enhance insulin secretion and optimize cell function through AI-driven drug discovery and multi-gene editing. Additionally, Creative Medical’s stockholders approved an increase in authorized shares of common stock from 5 million to 25 million during a recent Special Meeting. The company’s board also withdrew certificates of designation for Series A and Series B Preferred Stock, as there were no outstanding shares of these series. The meeting further approved the full exercise of warrants to purchase 837,104 shares of common stock. These developments reflect Creative Medical’s ongoing efforts to innovate in regenerative medicine and expand its financial capabilities.

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