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Windtree Therapeutics, Inc. (NASDAQ:WINT), a micro-cap company with a market value of $3.4 million, entered into a series of note purchase agreements on June 27 and Wednesday, raising gross proceeds of $253,333 through the sale of convertible promissory notes and warrants, according to a statement made in a recent SEC filing. InvestingPro data shows the company has been quickly burning through cash, with a concerning current ratio of 0.25.
On June 27, the company issued two convertible promissory notes to investors with a principal amount of $58,140 for $50,000 and another note with a principal amount of $96,899 for $83,333. On Wednesday, Windtree entered into additional agreements with two purchasers, issuing two convertible promissory notes, each with a principal amount of $40,698 for $35,000.
All notes accrue interest at 14% annually and mature in 12 months. The notes are convertible into shares of Windtree’s common stock at a conversion price of $0.587 per share.
As part of the agreements, Windtree also issued warrants to the investors. Each warrant allows the purchase of common stock equal to 25% of the purchase price paid by the respective investor. One June investor received a warrant for $20,833 worth of shares, while other June investors received warrants for $12,500 worth of shares. Both July investors received warrants for $8,750 worth of shares. All warrants have an exercise price of $1.10 per share. The number of shares issuable upon exercise of a warrant will change if the exercise price is adjusted.
The securities were sold in reliance on exemptions from registration under Section 4(a)(2) of the Securities Act of 1933 and/or Rule 506(b) of Regulation D. The company stated that proceeds from the financing will be used for operational expenses, including funding a loan to Titan Environmental Services, Inc.
This information is based on a press release statement included in Windtree’s recent SEC filing.
In other recent news, Windtree Therapeutics has made several significant announcements that may interest investors. The company received a U.S. patent for its istaroxime intravenous formulation, providing protection until 2039, contingent upon regulatory approval. This development follows positive results from two Phase 2 studies in acute heart failure and early studies in cardiogenic shock. Additionally, Windtree reached the interim enrollment target for its Phase 2 SEISMiC C study of istaroxime in SCAI Stage C cardiogenic shock patients, which will help assess the drug’s safety and early efficacy signals. The company is also progressing towards a Phase 3 study in acute heart failure for the China market, fully funded by a regional partner.
In a strategic move, Windtree has entered into a binding letter of intent to acquire Titan Environmental Solutions for $35 million in preferred stock, along with additional notes totaling $1.75 million. Windtree has also received a non-binding offer to sell its preclinical oncology aPKCi inhibitor platform for $7 million upfront, with potential milestone payments and royalties. The company is considering these opportunities to enhance shareholder value by reducing cash burn and focusing on near-term growth. These developments reflect Windtree’s ongoing efforts to strengthen its portfolio and explore new avenues for profitability.
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