Altimmune stock was falling hard Monday on news that the company is selling additional stock to investors.
According to Altimmune (NASDAQ:ALT), the company has entered into a purchase agreement with a several institutional investors. This agreement will have it selling a combination of 4,629,630 common units and pre-funded units in a direct offering.
This deal will have Altimmune selling the common units for $5.40 per share. The common units include one common share of Altimmune stock, as well as a warrant to purchase an additional share for the same price.
When it comes to the pre-funded units, Altimmune is selling them for $5.39. These units include a warrant to purchase a share of Altimmune stock for one penny. It also includes a warrant to purchase an additional share of ALT stock for a price of $5.39.
Altimmune says that the pre-funded warrants in this offering will be exercisable immediately and until all warrants are used. It notes that all other warrants in the offering are exercisable immediately and for up to five years after purchase.
Altimmune notes that this new offering for its stock closely mirrors its public offering that closed on Oct. 2, 2018. The company says that it is expecting this current offering to reach completion on Oct. 10, 2018.
The offer for Altimmune stock will bring in gross proceeds of around $25 million, prior to agent fees and other expenses. ALT says that it is planning to use the net proceeds from this offering to fund “advancement of development activities for our clinical-stage product pipeline, general corporate purposes and strategic growth opportunities.”
ALT stock was down 32% as of noon Monday and is down 87% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.