Bullish indicating open at $55-$60, IPO prices at $37
BOCA RATON - Entero Therapeutics, Inc. (NASDAQ:ENTO), currently valued at $1.74 million and showing a -14% return over the past week according to InvestingPro, has secured approximately $3 million through private placement agreements with institutional investors, the clinical-stage biopharmaceutical company announced Monday.
The transaction, priced at market under Nasdaq rules, consists of 4,878,841 pre-funded warrants and 9,757,682 common warrants. The combined purchase price for one pre-funded warrant and two common warrants is $0.6149. The company maintains a healthy current ratio of 2.9, indicating strong short-term liquidity according to InvestingPro data.
Pre-funded warrants will be immediately exercisable at $0.00001 per share, while common warrants will be exercisable at $0.3649 per share with a five-year expiration term from the effective date of the resale registration statement.
The company will receive approximately $1 million at closing and an additional $2 million when the resale registration statement becomes effective. The transaction is expected to close Monday, subject to customary closing conditions.
Entero Therapeutics plans to use the proceeds for general corporate purposes and working capital. The company specializes in developing targeted, non-systemic therapies for gastrointestinal diseases, with a pipeline that includes treatments for celiac disease, gastroparesis, and pancreatic insufficiency in cystic fibrosis and chronic pancreatitis patients. InvestingPro analysis suggests the stock is currently undervalued, with analysts anticipating challenging profitability metrics for the year ahead. Subscribers can access 10+ additional ProTips and detailed financial metrics to better understand the company’s outlook.
The securities are being sold in a private placement to accredited investors and have not been registered under the Securities Act of 1933. The company has agreed to file registration statements with the SEC covering the resale of shares issuable upon exercise of the warrants.
Sichenzia Ross Ference Carmel LLP is serving as counsel to Entero Therapeutics, while Kaufman & Canoles, P.C. is representing the investors, according to the company’s press release statement.
In other recent news, Entero Therapeutics, Inc. announced that it has regained compliance with Nasdaq Listing Rule 5620(a) following its annual meeting on June 30. This compliance was confirmed by a letter from the Nasdaq Stock Market’s Listing Qualifications department, and the company’s shares continue to be listed on the Nasdaq Capital Market. Additionally, Entero Therapeutics has been granted an extension by Nasdaq to meet the minimum stockholders’ equity requirement for continued listing. This extension allows the company until October 8, 2025, to comply with Nasdaq Listing Rule 5550(b)(1). However, the company must adhere to specific terms during this period to maintain its listing status. If compliance is not achieved by the deadline, Entero Therapeutics may face delisting, although it has the option to appeal any such decision to a Nasdaq Hearing Panel. The company has acknowledged that there is no assurance of regaining compliance or maintaining its listing. These developments mark significant regulatory steps for Entero Therapeutics as it navigates its listing requirements.
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