Stellar Biotechnologies Inc (NASDAQ:SBOT) the leader in sustainable manufacture of Keyhole Limpet Hemocyanin (“KLH”), announced today that it has entered into definitive agreements to sell 1,687,500 common shares in a registered direct offering and unregistered warrants to purchase up to 1,265,625 unregistered common shares in a private placement. The combined purchase price for one registered common share and one unregistered warrant to purchase 0.75 of an unregistered common share will be $4.00. The warrants have an exercise price of $4.50 per full share, are non-exercisable for 6 months and will terminate 5 years from the time the warrants are first exercisable. The closing of the offering is expected to occur on or about July 6, 2016, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as the exclusive placement agent for the offering.
Stellar intends to use the net proceeds from the offering for research and development activities, operating costs, capital expenditures and for general corporate purposes, including working capital. (Original Source)
Shares of Stellar Biotechnologies are down nearly 7% in early morning trading. SBOT has a 1-year high of $9.70 and a 1-year low of $2.52. The stock’s 50-day moving average is $3.25 and its 200-day moving average is $4.95.
On the ratings front, Maxim Group analyst Jason McCarthy reiterated a Buy rating on SBOT, with a price target of $17, in a report issued on May 19. The current price target represents a potential upside of 306.7% from where the stock is currently trading. According to TipRanks.com, McCarthy has a yearly average return of -6.9%, a 30.5% success rate, and is ranked #3721 out of 3906 analysts.
Stellar Biotechnologies, Inc. operates as a biotechnology research company. It engages in the research, development, manufacture and commercialization of Keyhole Limpet Hemocyanin protein under the brand Stellar KLH. Stellar Biotechnologies was founded on June 12, 2007 and is headquartered in Port Hueneme, CA.