HOTH - Hoth Therapeutics falls 38% on $10M private placement

• Nano-cap biotech Hoth Therapeutics ( NASDAQ: HOTH ) lost ~38% to end a two-day rally in the pre-market Friday after announcing a private placement to sell 2.0M shares of its common stock and warrants to raise $10M in gross proceeds.
• The capital raise is part of an agreement the company entered to allow the purchase of 2.5M of its common stock at $5.00 per unit, priced at the market. The warrants will have an exercise price of $5.00 per share and an exercise period of five and half years starting immediately after the issuance.
• The private placement is expected to close on or about Jan. 03, subject to the completion of certain conditions.
• The company expects to use the net proceeds from the transaction for R&D, working capital, and general corporate purposes.
• The private placement follows more than a twofold rise in Hoth ( HOTH ) shares on Thursday after the company announced that the FDA accepted its application to begin a clinical trial for HT-001, a treatment for rash and skin disorders linked to cancer therapy.

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