BIOR - Biora Therapeutics slides on $9.75M securities offering

Biora Therapeutics ( NASDAQ: BIOR ) shares plunged 17% Monday morning after the biotech company announced a $9.75M securities offering.

The firm entered into a definitive agreement with institutional investors for the purchase and sale of 32,506,250 shares of its common stock (or pre-funded warrants in lieu thereof) and warrants to purchase up to 32,506,250 shares of common stock at a combined offering price of $0.30/share (or pre-funded warrants in lieu thereof) and accompanying warrant.

The warrants will become exercisable commencing six months following the date of issuance at $0.3288/share and will expire five years following the initial exercise date.

Gross proceeds are expected to be approximately $9.75M. Net proceeds will support operations, research and development with respect to its oral biotherapeutics platform, and for working capital and general corporate purposes.

Approximately $3.75M of the gross proceeds are being received by Biora ( BIOR ) as an in-kind payment.

The offering is expected to close around November 9, 2022.

Biora ( BIOR ) also has agreed that certain existing warrants held by the investors in the offering to purchase up to an aggregate of 12,719,543 shares of the company’s common stock that were previously issued to investors in February 2021 and June 2021, with exercise prices ranging from $2.84 to $6.86 per share and expiration dates ranging from February 2026 to June 2026, will be amended effective upon the closing of the offering so that the amended warrants will have a reduced exercise price of $0.3288/share, will not be exercisable until six months following the closing of the offering and will expire five and one-half years following the closing of the offering.

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