Xenetic Biosciences (XBIO) Stock Pops On Offering At A Premium

Xenetic Biosciences Inc (NASDAQ: XBIO) is screaming for the top in the market this morning, setting the stage for the second consecutive session of dramatic gains. Today’s run is the result of a fund raise announcement that pointed to key funding being brought in at a premium. Here’s what’s going on:

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XBIO Stock Pops On Fund Raise

In the press release, Xenetic Biosciences said that it has entered into a definitive agreement with healthcare-focused institutional investors for the purchase of 4,629,630 shares of common stock at a purchase price of $2.70, representing a strong premium to Friday’s closing price of $2.52 per share. 

The company went on to explain that the deal will take place in a private placement priced at-the-market under NASDAQ rules. 

The company went on to say that it has also agreed to issue warrants to purchase up to an additional 4,629,630 shares of common stock with an exercise price of $3.30 per share. These warrants will be exercisable immediately and will expire three and a half years from the date the registration statement registering the shares for resale of shares is declared effective by the SEC. 

XBIO went on to say that the closing of the offering is expected to take place on or about July 28, 2021 and is subject to customary closing conditions. 

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Final Thoughts

This is big news my friends. Generally, fund raising activities are met with negative responses among investors. However, it’s rare that these activities result in a premium being paid. With such a strong premium on the offering, it only makes sense that investors are excited to dive in, sending the XBIO for the top this morning. 

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