Company Update (NASDAQ:PULM): Pulmatrix Inc Announces $5 Million Registered Direct Offering
Pulmatrix Inc (NASDAQ:PULM) announced that it has entered into a definitive agreement with several institutional investors to purchase an aggregate of approximately $5.0 million of shares of common stock in a registered direct offering.
The Company agreed to sell an aggregate of approximately 2,000,000 shares of common stock, at a price of $2.50 per share, 26% discount to last closing price, in the registered direct offering. The closing of this offering is expected to take place on or about February 2, 2017, subject to the satisfaction of customary closing conditions.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., is acting as exclusive placement agent in connection with this offering.
The estimated net proceeds to the Company from the sale of the shares of common stock in the registered direct offering are expected to be approximately $4.5 million. The Company intends to use the net proceeds for general corporate purposes and to payment of indebtedness.
The offering would dilute shareholders’ investments, and as such Pulmatrix shares are currently dropping nearly 32% to $2.29 in Monday’s trading session. PULM has a 1-year high of $3.89 and a 1-year low of $0.50. The stock’s 50-day moving average is $0.88 and its 200-day moving average is $1.35.
Pulmatrix, Inc. is a clinical stage biotechnology company, which is focused on the discovery and development of novel inhaled therapeutic products intended to prevent and treat respiratory diseases and infections with significant unmet medical needs. It designs and develops inhaled therapeutic products based on its proprietary dry powder delivery technology, iSPERSE, which enables delivery of small or large molecule drugs to the lungs by inhalation for local or systemic applications. The company was founded by David Edwards, Mark Gabrielson, Alexander Klibanov, and Robert Langer in 2013 and is headquartered in Lexington, MA.