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180 Life Sciences Corp. (ATNF) closed a $425 million private placement to fund its Ethereum treasury strategy, according to a company statement. The biotechnology company sold common stock and pre-funded warrants at $2.65 per share through a private investment in public equity transaction.
The company plans to use proceeds primarily to purchase Ethereum (ETH), pay transaction expenses, provide cash bonuses to management and board members, support existing iGaming operations, and monetize biotechnology intellectual property assets. 180 Life Sciences intends to begin purchasing Ethereum over the coming weeks.
Electric Capital and Harbour Island led the placement, with participation from institutional and cryptocurrency investors including Borderless Capital, Polychain Capital, and GSR. Notable individual investors include Konstantin Lomashuk, co-founder of Lido, and Sreeram Kannan, founder of Eigenlayer.
The company appointed McAndrew Rudisill as chairman of the board of directors, with Crystal Heter and Andrew Suckling joining as independent directors. Blair Jordan continues as chief executive officer.
Electric Capital will serve as external asset manager and implement an on-chain yield generation program designed to outperform traditional ETH staking through staking, lending, liquidity provisioning and private agreements.
180 Life Sciences plans to rebrand as ETHZilla Corporation and may sell up to $150 million in fixed income securities following the completed placement. The company stated it will provide regular updates on its Ethereum holdings.
Clear Street LLC acted as financial advisor and exclusive placement agent for the offering. The Loev Law Firm and Reed Smith LLP served as legal advisors to the company.