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SAN DIEGO - MEI Pharma, Inc. (NASDAQ:MEIP), whose stock has surged over 113% in the past week to $6.86, has closed a $100 million private placement and announced plans to become the first publicly traded company on a national exchange to hold Litecoin as its primary treasury reserve asset. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet.
The biopharmaceutical company sold approximately 29.2 million shares of common stock at $3.42 per share, according to a press release statement. The company intends to use the proceeds to acquire Litecoin (LTC), a cryptocurrency created by Charlie Lee in 2011. With a current market capitalization of $45.31 million, MEI Pharma’s financial health score is rated as "GOOD" by InvestingPro, despite recent cash burn concerns.
As part of the transaction, Charlie Lee has joined MEI Pharma’s Board of Directors, replacing Taheer Datoo. GSR, a digital asset market maker and lead investor in the private placement, has been appointed as the company’s digital asset and treasury management advisor.
"This milestone not only reflects growing institutional confidence in LTC but also sets the stage for broader adoption in traditional capital markets," Lee said in the statement.
Other participants in the private placement included the Litecoin Foundation and several crypto venture capital firms such as MOZAYYX, ParaFi, Hivemind, and Primitive.
The securities were offered in a private placement under Section 4(a)(2) of the Securities Act and/or Regulation D. MEI Pharma has agreed to file a registration statement with the SEC for the resale of the shares.
Titan Partners Group, a division of American Capital Partners, served as the sole placement agent for the transaction, with Morgan, Lewis & Bockius LLP acting as counsel to MEI Pharma.
MEI Pharma is a pharmaceutical company with a portfolio that includes voruciclib, an oral cyclin-dependent kinase 9 inhibitor. While the company maintains a strong current ratio of 16.78, InvestingPro analysis reveals additional insights about the company’s financial position, with 12 more exclusive ProTips available to subscribers.
In other recent news, MEI Pharma, Inc. has announced a significant financial strategy shift involving a $100 million private placement aimed at establishing a Litecoin treasury reserve. The San Diego-based company has entered into securities purchase agreements to sell approximately 29.2 million shares of common stock at $3.42 per share. This move positions MEI Pharma as the first publicly traded company on a national exchange to hold Litecoin as a primary reserve asset. The entire proceeds from the private placement will be used to acquire Litecoin. The transaction is expected to close around July 22, 2025. This development marks a notable entry into cryptocurrency reserves for MEI Pharma, reflecting a broader trend of companies exploring digital assets.
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