USAU - U.S. Gold to raise $2.5M in stock and warrants offering

U.S. Gold (NASDAQ:USAU) trades 12.1% down premarket after it entered into a securities purchase agreement with certain institutional and accredited investors for the purchase and sale of 384,741 shares at $6.50/share and warrants to purchase 192,370 shares at an exercise price of $8/share in a registered direct offering. Offer gross proceeds estimated at ~$2.5M. The warrants will be exercisable immediately post the issuance and will expire five years from the issuance date. The closing of the sale of the securities is expected to take place on or about Feb.16. Post offer completion, the company is expected to have 7,481,464 shares of common stock issued and outstanding.

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U.S. Gold to raise $2.5M in stock and warrants offering