SAN FRANCISCO - GT Biopharma, Inc. (NASDAQ:GTBP), a biopharmaceutical company engaged in the development of immuno-oncology therapeutics with a current market capitalization of $4.7 million, has announced definitive agreements for the exercise of warrants to purchase 302,069 shares of common stock at $4.35 per share, which were originally issued in May 2024. According to InvestingPro data, the company's stock is currently trading at $2.10, down about 33% year-to-date. The company expects to raise approximately $0.7 million in gross proceeds from this exercise, before accounting for placement agent fees and offering expenses. While InvestingPro analysis shows GT Biopharma maintains more cash than debt on its balance sheet, its current ratio of 0.72 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets.
As part of the transaction, investors have agreed to exercise their warrants for cash at a reduced price of $2.27 per share. In return, GT Biopharma will issue new unregistered warrants for the purchase of up to 604,138 additional shares at an exercise price of $2.02 per share. These warrants are immediately exercisable, with half having a five-year term from the issuance date and the other half with an eighteen-month term.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering, which is expected to close around February 27, 2025, subject to customary closing conditions.
The net proceeds from the offering are intended for working capital and general corporate purposes. The new warrants and the shares of common stock issuable upon their exercise have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and are being offered in a private placement under Section 4(a)(2) and Regulation D.
GT Biopharma has committed to filing a registration statement with the Securities and Exchange Commission for the resale of the shares of common stock issuable upon exercise of the new warrants.
This press release does not represent an offer to sell or a solicitation of an offer to buy these securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. For comprehensive financial analysis and additional insights about GT Biopharma's performance, including 8 more key ProTips and detailed valuation metrics, visit InvestingPro.
The information in this article is based on a press release statement from GT Biopharma, Inc.
In other recent news, GT Biopharma has announced the withdrawal of its Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission. The company did not provide specific reasons for this decision, and no securities related to the offering have been sold. Meanwhile, Roth/MKM has initiated coverage on GT Biopharma with a Buy rating, citing potential revenue from its GTB-3650 product and a stable financial position, including a cash reserve of $6.5 million as of the third quarter of 2024. The analyst firm set a price target of $11.00, reflecting a positive outlook on the company's financial strategy and product pipeline.
Additionally, GT Biopharma is facing a potential delisting from the Nasdaq Stock Market due to not meeting the minimum stockholders' equity requirement of $2.5 million. The company has until January 6, 2025, to submit a compliance plan to Nasdaq, which, if accepted, could grant them additional time to meet the equity requirements. This development follows a notification from Nasdaq based on the company's quarterly report ending September 30, 2024. GT Biopharma has expressed its intention to address this issue within the specified timeframe. Investors are closely monitoring the situation as the company navigates these challenges to maintain its Nasdaq listing.
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