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LAS VEGAS - PharmaCyte Biotech, Inc. (NASDAQ:PMCB), a biotech company with a strong financial health score of 3.07 according to InvestingPro, announced Monday it has entered into a securities purchase agreement for a $7 million financing with existing investors through a private placement. The company, currently valued at $6.16 million in market capitalization, maintains a robust balance sheet with more cash than debt.
The transaction involves the sale of 7,000 shares of newly designated Series C convertible preferred stock with a stated value of $1,000 per share. These shares are convertible into an aggregate of 7 million shares of common stock at a conversion price of $1.00 per share, representing a premium to the current trading price of $0.90. The stock has shown low correlation with broader market movements, with a beta of -0.29.
The deal also includes unregistered common stock purchase warrants to purchase up to 7 million shares of common stock at an exercise price of $1.00 per share. The warrants are exercisable immediately and will remain valid for five years from issuance.
"This financing, priced at a premium to our current market price and led by our existing investors, reflects strong confidence in PharmaCyte’s future," said Josh Silverman, Interim Chief Executive Officer of PharmaCyte.
The preferred stock will accrue a 7.0% quarterly dividend payable in cash. GP Nurmenkari Inc. is serving as the sole placement agent for the private placement.
The transaction is expected to close on or about August 19, 2025, subject to customary closing conditions. The company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock issuable upon conversion of the preferred stock and exercise of the warrants.
The securities in the private placement were offered and sold in transactions exempt from the registration requirements of the Securities Act of 1933 under Section 4(a)(2) and Rule 506 of Regulation D.
This information is based on a press release statement from PharmaCyte Biotech.
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