BiomX (NYSEMKT:PHGE) stock is taking a beating on Wednesday after the clinical-stage microbiome company revealed details of a new private placement.
According to a news release, BiomX has entered into a securities purchase agreement with select institutional and individual investors. That includes investors OrbiMed and the Cystic Fibrosis Foundation.
That private placement includes 30.6 million shares of PHGE stock priced at 24.5 cents per share. The offering will be split in two with the first generating $1.5 million promptly.
The second will see the remaining shares sold and will bring the total gross proceeds up to $7.5 million. However, it first requires approval from shareholders to issue new shares of PHGE stock. That is set to take place in the second quarter of 2023.
BiomX already has plans for the gross proceeds from the private placement. That includes using the money to fund the development of BX004. This is the company’s candidate for treating patients with lung infections that have cystic fibrosis.
What This Means For PHGE Stock
BiomX seeking to increase the total number of outstanding shares isn’t sitting well with investors. That’s pulling the price of the stock down today, which isn’t uncommon when stock offerings are announced.
PHGE stock is down 11.2% as of Wednesday morning.
Investors looking for all of the latest stock market news will want to keep reading!
We’ve got all of that news ready to go with the most recent stock happenings for Wednesday! A few examples include why shares of Cyren (NASDAQ:CYRN) and Terran Orbital (NYSE:LLAP) stock are up, as well as the biggest pre-market stock movers for this morning. All of that is ready to go at the links below!
More Wednesday Stock Market News
- Why Is Cyren (CYRN) Stock Up 43% Today?
- Why Is Terran Orbital (LLAP) Stock Up 99% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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