Prana Biotechnology stock was flying high Wednesday on news about a strategic investment from Life Biosciences.
This strategic investment from Life Biosciences will have it making an initial investment of $7.5 million into the company researching treatments for Parkinson’s disease. It also allows Prana Biotechnology (NASDAQ:PRAN) to raise another $2 million from other investors.
The good news for Prana Biotechnology stock stock doesn’t stop there. After this initial investment, the company will also be able to raise an additional $21.9 million from Life Biosciences and other investors. This will be through the exercise of short-term warrants that are part of the deal.
The deal will have the company issuing 272 million new fully paid ordinary shares of Prana Biotechnology stock. The ordinary shares in the deal will be sold for 3.9 cents each. Holders of the warrants will be able to exercise them for 4.5 cents each. These warrants can be exercised two months after the date of issue.
The investment into Prana Biotechnology also gives Life Biosciences some extra pull at the company. This includes the ability to nominate up to three directors to its Board of Directors. This will last for as long as it maintains a 20% stake in the company.
The first two directors that the company is nominating are Life Biosciences cofounders Dr David Sinclair and Tristan Edwards. They will be joining Prana Biotechnology’s Board of Directors once the deal is complete.
PRAN stock is up 46% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
