Shares of Rexahn Pharmaceuticals Inc (AMEX:RNN) sank on Wednesday after the company announced a $7.5 million registered direct offering.
The company said it has entered into an agreement with institutional investors to purchase approximately 5.77 million shares of its common stock and warrants exercisable for up to approximately 5.77 million shares of its common stock to generate gross proceeds of approximately $7.5 million.
The shares and warrants are being sold in units, each consisting of one share of common stock and a warrant to purchase one share of common stock, at an offering price of $1.30 per unit, a 22% discount from the Tuesday closing price of Rexahn.
Shares of Rexahn were trading 28.275 down at $1.20, having touched a session and 52-week low of $1.16.
READ: Rexahn Pharmaceuticals' RX-3117 could be a blockbuster, says HC Wainwright
The warrants will be exercisable six months following the date of issuance and will expire on the fifth anniversary of the initial exercise date and will have an exercise price of $1.67 per share, which was the closing price on Tuesday. The closing of the offering is expected to take place on or about October 19, 2018.
The net proceeds of the offering will be used for further development of Rexahn’s lead clinical programs, including the funding of clinical development programs for RX-3117 and RX-5902, which are supposed to fight cancer. The funds will also be used for working capital and general corporate purposes.
Rexahn Pharmaceuticals is a clinical stage biopharmaceutical company dedicated to developing novel, targeted therapeutics for the treatment of cancer.
The company is based in Rockville, Maryland.
Reporting by Rene Pastor, contactable on [email protected]
