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WARRINGTON, Pa. - Biotechnology company Windtree Therapeutics, Inc. (NASDAQ:WINT), currently valued at $3.56 million and showing signs of financial strain according to InvestingPro data, announced Thursday it has entered into agreements that could provide up to $700 million to acquire BNB cryptocurrency as part of its treasury strategy.
The company has established an equity line of credit (ELOC) for up to $500 million and entered into a $200 million stock purchase agreement with Build and Build Corp. According to the press release, 99% of proceeds from both arrangements will be used to purchase BNB cryptocurrency. This strategic shift comes as the company faces financial challenges, with InvestingPro analysis revealing a concerning current ratio of 0.25 and significant YTD stock price decline of over 94%.
The ELOC cannot be utilized until Windtree obtains stockholder approval to increase its authorized shares of common stock, the company noted.
"We are excited to incorporate these new facilities to enable our future BNB acquisitions as part of our BNB treasury strategy," said Jed Latkin, CEO of Windtree, in the announcement.
Windtree described the move as part of its strategy to diversify treasury assets while exploring "innovative avenues to drive stockholder value."
Build and Build Corp, which is backing the stock purchase agreement, is a company established by Patrick Horsman, Joshua Kruger, and Johnathan Pasch, with reported backing from investors including Discovery Capital, Off The Chain Capital, Kraken, and Galaxy Digital.
Windtree Therapeutics identifies itself as a diversified company with a cryptocurrency treasury strategy and two therapeutic pipelines for which it is seeking long-term development partners.
The company noted in its statement that the announcement does not constitute an offer to sell or solicitation to buy securities, and that forward-looking statements are subject to numerous risks and uncertainties that could cause actual events to differ from current expectations.
In other recent news, Windtree Therapeutics, Inc. announced it has entered into a $60 million securities purchase agreement led by Build and Build Corp, with the potential for up to an additional $140 million in future subscriptions. The funds are intended to launch a BNB crypto treasury strategy and purchase BNB tokens, subject to shareholder approval and other conditions. Additionally, Windtree has raised $253,333 through convertible promissory notes and warrants, according to a recent SEC filing. The company issued several notes with varying principal amounts, contributing to the raised funds.
In a separate development, Windtree received a U.S. patent for its istaroxime intravenous formulation aimed at treating acute heart failure, which could provide protection until 2039 upon regulatory approval. Furthermore, Windtree has reached its interim enrollment goal in the Phase 2 SEISMiC C study of istaroxime for patients with SCAI Stage C cardiogenic shock. This study is part of Windtree’s ongoing efforts in developing treatments for more severely ill patients. Lastly, Windtree signed a term sheet with cryptocurrency platform Kraken to provide services for its BNB Crypto Treasury Strategy, pending shareholder approval of the securities purchase agreement.
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