GT Biopharma, Inc. (NASDAQ:GTBP), a pharmaceutical company with a market capitalization of $5.25 million and current share price of $2.35, has issued a pre-funded warrant to Cytovance Biologics, Inc., allowing the purchase of up to 326,251 shares of common stock. According to InvestingPro data, while the company maintains more cash than debt on its balance sheet, its short-term obligations exceed liquid assets with a current ratio of 0.72. This transaction, dated March 31, 2025, was part of a compensation agreement for services provided by Cytovance to GT Biopharma.
The Warrant is immediately exercisable at any time, with a nominal exercise price of $0.0001 per share. The total exercise price of $846,562.50, excluding the nominal per-share amount, has been pre-funded through the services rendered by Cytovance to the company.
GT Biopharma has opted to offer and sell the Warrant and the Warrant Shares without registration under the Securities Act of 1933, relying on the exemptions from registration provided by Section 4(a)(2) of the Act and corresponding state law exemptions.
The issuance of the Warrant aligns with GT Biopharma’s strategy to compensate its service providers with equity instruments, which is a common practice in the industry to align interests and conserve cash for operational needs. With a negative earnings per share of -$6.94 and analysts projecting continued losses, this equity-based compensation approach appears crucial for cash preservation. Unlock more insights about GTBP’s financial health with InvestingPro, which offers 7 additional key tips about the company’s performance.
Investors should note that the Warrant and the Warrant Shares have not been registered under the Securities Act and therefore cannot be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, though investors should consider the company’s Fair financial health score of 2.23 when making investment decisions.
The details of the Warrant have been outlined in Exhibit 4.1 attached to the Current Report on Form 8-K filed with the SEC. This information is based on a press release statement and provides a factual account of GT Biopharma’s recent financial activity as required by the SEC.
In other recent news, GT Biopharma, Inc. announced it has entered into definitive agreements for the exercise of warrants to purchase 302,069 shares of common stock at a reduced price of $2.27 per share. This exercise is expected to generate approximately $0.7 million in gross proceeds, prior to accounting for placement agent fees and offering expenses. The company will also issue new unregistered warrants for up to 604,138 additional shares at an exercise price of $2.02 per share. H.C. Wainwright & Co. is acting as the exclusive placement agent for this offering. Additionally, GT Biopharma has withdrawn its Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission, which was initially filed on December 23, 2024. The registration statement had not been declared effective, and no securities were sold related to the offering. The company did not disclose specific reasons for the withdrawal. These developments are part of GT Biopharma’s ongoing corporate activities and strategic decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.