NEW HAVEN - BioXcel Therapeutics, Inc. (NASDAQ:BTAI), a biopharmaceutical firm leveraging artificial intelligence to develop medicines, has announced a registered direct offering to raise approximately $25 million. The transaction includes the sale of common stock and warrants without the involvement of underwriters or placement agents, which is expected to close on March 27, 2024, subject to standard closing conditions.
The offering consists of 3,054,609 shares of common stock and accompanying warrants to purchase an equal number of shares at a combined price of $2.901 per share and warrant. Additionally, pre-funded warrants are being offered to purchase up to 5,565,027 shares, with accompanying warrants for the same number, at a combined offering price of $2.900, slightly less than the price per share due to the $0.001 exercise price of the pre-funded warrants.
The pre-funded warrants can be exercised at any time after issuance, with an exercise price of $0.001 per share, subject to certain ownership limitations. The accompanying warrants have an exercise price of $3.20 per share and will expire five years from the date of issuance.
The information in this article is based on a press release statement from BioXcel Therapeutics.
InvestingPro Insights
BioXcel Therapeutics, Inc. is navigating a challenging financial landscape, as reflected in the recent direct offering aimed at raising capital. InvestingPro data and tips provide deeper insights into the company's current market position. With a market capitalization of $85.92 million and a significant revenue growth of 268% in the last twelve months as of Q4 2023, BioXcel shows a dynamic sales trajectory. However, the company's gross profit margin stands at a modest 8.7%, highlighting efficiency challenges in converting sales into profits.
InvestingPro Tips suggest that while analysts expect sales to grow this year, they do not anticipate the company will turn profitable within the same timeframe. Additionally, with a price that has fallen significantly over the last year, BioXcel's valuation implies a poor free cash flow yield, hinting at a potentially overvalued stock given its current financial performance.
For investors considering BioXcel as a potential addition to their portfolio, it may be useful to note that the company is trading at a high revenue valuation multiple and is quickly burning through cash, as per InvestingPro Tips. These factors could impact investment decisions, especially in the context of the company's lack of dividend payments to shareholders.
For a more comprehensive analysis, including additional InvestingPro Tips that could inform your investment strategy for BioXcel, consider subscribing to InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 more InvestingPro Tips available for BioXcel, which can be accessed at https://www.investing.com/pro/BTAI.
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