VLON - Vallon Pharmaceuticals to raise $3.9M in stock offering

Vallon Pharmaceuticals (NASDAQ:VLON) trades 10.5% down premarket after it entered into definitive agreements with several institutional and accredited investors for the purchase and sale in a registered direct offering of 3.7M shares at purchase price of $1.0632/share. The closing of the sale of the securities is expected to occur on or about May 17. Net proceeds to be used for general corporate and working capital purposes and expenses associated with the exploration of strategic alternatives. In a concurrent private placement, the company also agreed to issue the investors unregistered warrants to purchase up to 3.7M shares; warrants have an exercise price of $0.9382/share and are immediately exercisable after issuance date and will expire five years post issuance date.

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Vallon Pharmaceuticals to raise $3.9M in stock offering