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Alaunos Therapeutics, Inc. (NASDAQ:TCRT), a biopharmaceutical company with a market capitalization of $4.68 million, has entered into a private placement agreement to sell preferred stock, raising $500,000 in fresh capital. The transaction, which involved the issuance of Series A-1 Convertible Preferred Stock, was completed on Monday with Watermill Asset Management as the purchaser. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, though analysts expect sales to decline this year.
The newly issued Series A-1 Preferred Stock, priced at $1,000 per share, has a dividend rate of 10% per annum, payable in additional shares of the same class. Holders of this preferred stock will also enjoy participation rights in dividends or distributions declared for common stockholders on an as-converted basis.
In terms of voting rights, Series A-1 Preferred Stock holders are on par with common stockholders, with each share convertible into common stock at a fixed rate of $2.76 per share. This conversion rate is subject to adjustments as outlined in the Certificate of Designation filed with the Delaware Secretary of State. The stock has shown strong momentum recently, with a 40% gain over the past six months, despite trading below InvestingPro’s calculated Fair Value.
The securities sold in this offering have not been registered under the Securities Act of 1933 and were offered under an exemption from registration requirements. As such, they may not be resold in the U.S. absent registration or an exemption from such registration requirements.
This strategic move modifies the rights of security holders as detailed in the Certificate of Designation, which also constitutes an amendment to the company’s Articles of Incorporation. The Certificate of Designation and Subscription Agreement are included in the exhibits filed with the SEC.
This financial maneuver is part of Alaunos Therapeutics’ broader efforts to secure funding for its operations. The company specializes in pharmaceutical preparations and is known for its previous identity as ZIOPHARM Oncology Inc. before rebranding. Financial health indicators from InvestingPro show a current ratio of 3.98, indicating strong short-term liquidity, though the company remains unprofitable over the last twelve months.
The details of this transaction are based on a press release statement filed with the SEC.
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