Athersys, Inc. (NASDAQ: ATHX) is having a pretty strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced a new equity facility that opens the door to funding. This announcement ultimately led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the announcement, what we’re seeing from the stock, and what we’ll be watching for with regard to ATHX ahead.
ATHX Gains On Credit Facility Announcement
As mentioned above, Athersys is having a relatively strong start to the session this morning in the pre-market hours after announcing a new equity facility. According to a press release issued early this morning, the company has established a new equity facility as a follow-on to a current facility. According to the terms of the agreement, ATHX has the right to sell up to $100 million in common stock to Aspire Capital under certain terms and conditions over the course of a 3-year period. So far, Aspire has made an initial investment of $1 million at a price of $2.00 per share.
In the release, the company said that this adds yet another important tool for accessing capital. Ultimately, this tool complements various business collaborations, grands, and traditional fund raising methods. In a statement, William Lehmann, President and CEO at ATHX, had the following to offer:
Our primary focus remains advancing our key clinical programs and business initiatives. The establishment of this new facility enables us to continue moving forward with critical priorities and programs from a position of financial stability and strength… The prior facilities provided by Aspire Capital have worked very well to complement our other business, fundraising and operational activities and have enabled us to access capital on market-based terms by working with a committed, long-time investor with substantial share ownership. As in past agreements, we have the option to use the new facility when we feel it is appropriate to help support the achievement of our operational objectives.
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