- Timber Pharmaceuticals' ( NYSE: TMBR ) stock fell ~21% on Oct. 3 after the company said that it signed an agreement with institutional investors to raise $1.3M from a registered direct offering.
- The company is selling 13M common shares, and Series 1 common warrants to buy up to 13M shares at $0.10 per share and associated warrant.
- The Series 1 warrants will be immediately exercisable at $0.10 per share, the company said in an Oct. 3 press release.
- In a concurrent private placement, Timber agreed to issue to the investors: Series 2 warrants to buy up to 13M shares, and 13K shares of Series B Mirroring Preferred Stock.
- The company added that the Series 2 warrants will become exercisable six months after issuance at $0.12 per share.
- In addition, Timber said that it expects to call a special meeting of stockholders to approve a proposal to effect a reverse stock split.
- The company intends to use the net proceeds from the offerings, which is expected to close Oct. 3, for working capital and general corporate purposes.
For further details see:
Timber stock tumbles 21% on $1.3M stock/warrants offering