COSM - Cosmos Health stock dips on pricing $5.25 million stock offering and concurrent private placement

2023-07-20 08:53:24 ET

• Cosmos Health ( NASDAQ: COSM ) said Thursday it has signed an agreement with institutional investors to provide the company with funding of $5.25 million through a private placement and registered direct stock offering.
• The stock is down 14% in premarket trade on Thursday.
• In lieu of the offering, Cosmos ( COSM ) to offer 2.12 million shares of the company's common stock in a registered direct offering and common warrants to purchase up to 1.94 million shares of common stock in a concurrent private placement at combined purchase price for one share of common stock and one common warrant will be $2.48.
• The warrants will have an exercise price of $2.75 per share, will be exercisable immediately and will expire five years from the issuance date.
• Total gross proceeds from the private placement and stock offering is expected to be about C$5.25 million.
• The net proceeds from the offering will be used for working capital and general corporate purposes.
• Offering includes participation from Grigorios Siokas, CEO of Cosmos Health Inc., as well as existing shareholders of the company.
• The company also agreed to amend existing warrants previously given to the investors participating in this offering, with an exercise price of $11.50 per share, to purchase up to 782,610 shares of the Company's common stock.
• All the other terms of the prior warrants will remain unchanged.
• The offering is expected to close on or about July 21, 2023, subject to the satisfaction of customary closing conditions.

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