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Investing.com -- BioNexus Gene Lab Corp. (NASDAQ:BGLC) stock fell 3.8% Tuesday after the precision oncology diagnostics provider announced it has entered into a $500 million Equity Purchase Agreement with ARC Group International Ltd.
The 36-month facility allows BioNexus to issue and sell registered shares of its common stock to ARC at its sole discretion. As compensation for ARC’s commitment, BioNexus issued 175,000 shares of common stock as a one-time fee, priced at $4.32, the closing price on November 26.
The agreement prohibits ARC from owning more than 9.99% of BioNexus’s outstanding shares at any time and restricts the investment bank from short-selling or hedging the company’s securities. BioNexus will file a registration statement for the resale of shares issued under the facility, with no shares to be sold prior to registration.
This new facility complements BioNexus’s previously announced $20 million At-The-Market program, providing additional financial flexibility as the company pursues strategic initiatives including the commercialization of its VitaGuard minimal residual disease platform in Southeast Asia.
"This commitment from ARC strengthens our capital position at a pivotal time for BGLC," said Sam Tan, Chief Executive Officer of BioNexus Gene Lab Corp. "We intend to draw from this resource selectively and responsibly as we advance our diagnostics, CDMO, and therapeutic commercialization programs."
The company is expanding its operations across Southeast Asia and working to add contract development and manufacturing organization services to its regional business portfolio.
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