Stock Update (NASDAQ:GALE): Galena Biopharma Announces Closing of Public Offering of Common Stock and Warrants


Galena Biopharma, Inc. (Nasdaq:GALE), a biopharmaceutical company developing and commercializing innovative, targeted oncology therapeutics that address major medical needs across the full spectrum of cancer care, announced the closing of its previously announced underwritten public offering of 24,358,974 shares of common stock, and warrants to purchase an aggregate of 12,179,487 shares of common stock at an exercise price of $2.08 per share. The underwriters also exercised their over-allotment option to purchase warrants to purchase an aggregate of 1,826,923 shares of common stock. The warrants are immediately exercisable and expire on the fifth anniversary of the date of issuance. The shares of common stock and warrants are immediately separable and will be issued separately.

The net proceeds to Galena are expected to be approximately $35.4 million, assuming no exercise of the warrants and after deducting underwriting discounts and commissions and estimated offering expenses payable by Galena.

Raymond James & Associates, Inc. acted as the sole book-running manager for the offering. Roth Capital Partners acted as lead manager, and Maxim Group LLC, Noble Life Science Partners, and MLV & Co. LLC acted as co-managers.

Galena intends to use the net proceeds from this offering to fund its operations, including the ongoing commercialization of Abstral® (fentanyl) Sublingual Tablets and Zuplenz® (ondansetron) Oral Soluble Film, its ongoing Phase 3 PRESENT study and other clinical trials of its product candidates, and for other working capital and general corporate purposes. (Original Source)

Shares of Galena Biopharma closed today at $1.41, up $0.04, or 2.92 percent. GALE has a 1-year high of $3.58 and a 1-year low of $1.33. The stock's 50-day moving average is $1.72 and it's 200-day moving average is $1.83.

On the ratings front, Galena Biopharma (NASDAQ: GALE) has been the subject of a number of recent research reports. In a report issued on March 10, Noble Financial analyst Rahul Jasuja maintained a Buy rating on GALE, with a price target of $5, which represents a potential upside of 254.6% from where the stock is currently trading. Separately, on March 9, Needham's Chad Messer reiterated a Buy rating on the stock and has a price target of $4.

Galena Biopharma Inc, is abiopharmaceutical company focused on developing and commercializing targeted oncology therapeutics that address medical needs across the full spectrum of cancer care.

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