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WARRINGTON, Pa. - Windtree Therapeutics, Inc. (NasdaqCM:WINT), a company with a current market capitalization of just $3 million and trading at $0.83 per share, announced Wednesday it has entered into a $60 million securities purchase agreement led by Build and Build Corp, with potential for up to an additional $140 million in future subscriptions. According to InvestingPro data, the company has been quickly burning through cash, with a concerning current ratio of 0.25.
According to the company’s press release, the proceeds are intended primarily to launch a BNB crypto treasury strategy and purchase BNB tokens. The transaction, subject to shareholder approval and other closing conditions, would position Windtree as the first NASDAQ-listed company offering direct exposure to BNB, the fifth-largest blockchain by market capitalization. This strategic pivot comes as the company’s stock has seen a significant 23% return over the last week, though it remains down 93% over the past six months, as tracked by InvestingPro.
The financing is expected to be in the form of cash, shares of Osprey BNB Chain Trust and BNB tokens.
Jed Latkin, Chief Executive Officer of Windtree, called the agreement "a pivotal moment" that would secure up to $200 million from institutional investors.
Patrick Horsman, Director of Build & Build Corp, stated, "This innovative solution will offer investors targeted exposure to Binance and BNB, addressing what we believe to be a critical gap in the U.S. investment landscape."
BNB is described in the announcement as a leading cryptocurrency with average daily trading volumes exceeding $2 billion. The Binance Smart Chain supports transactions and a decentralized finance ecosystem.
Windtree Therapeutics identifies itself as a diversified company with several divisions, including the proposed cryptocurrency treasury strategy and two therapeutic pipelines for which it seeks long-term development partners.
Build and Build Corp was established by Patrick Horsman, Joshua Kruger, and Johnathan Pasch, who collectively bring over 43 years of experience in hedge funds and digital asset management, according to the press release.
The transaction remains subject to shareholder approval and other closing conditions. InvestingPro analysis reveals concerning fundamentals for Windtree, including negative EBITDA of -$24.12 million and weak gross profit margins. Subscribers can access 15 additional ProTips and comprehensive financial metrics to better understand the company’s position.
In other recent news, Windtree Therapeutics has raised $253,333 through the sale of convertible promissory notes and warrants, as noted in a recent SEC filing. The funds from this financing are intended for operational expenses, including a loan to Titan Environmental Services. Additionally, Windtree announced a binding letter of intent to acquire Titan Environmental Solutions for $35 million in preferred stock. The transaction includes the purchase of three notes from Titan totaling $1.75 million.
Furthermore, Windtree has secured a U.S. patent for its istaroxime formulation aimed at treating acute heart failure, with protection extending until 2039, pending regulatory approval. The company has also reached an interim enrollment goal for its Phase 2 SEISMiC C study of istaroxime in cardiogenic shock patients, which will help assess safety and early efficacy signals. In related developments, positive results from a Phase 2 study of istaroxime for early cardiogenic shock were published, showing significant improvements in blood pressure and cardiac output. Windtree is in discussions with potential partners for its cardiovascular pipeline, with a Phase 3 study for the China market in the final stages of design.
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