GTBP - GT Biopharma slips on $6.5M stock offering

• Cancer-focused nano-cap biotech GT Biopharma ( NASDAQ: GTBP ) lost ~8% in the pre-market trading Friday after announcing a registered direct offering to sell 6.5M shares of its common stock and warrants to raise $6.5M in gross proceeds.
• The capital raise is part of an agreement the company entered to allow the purchase of 6.5M of its common stock at $1.00 per unit, priced at a premium to the market. The warrants will have an exercise price of $1.00 per share and an exercise period of five years starting six months after the issuance.
• The company expects to close the transaction on or about Jan. 04, subject to the completion of certain conditions, and intends to use its net proceeds for general corporate purposes.
• The stock offering comes despite a ~70% YTD selloff in GT Biopharma ( GTBP ) shares this year, as indicated in this graph.

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