- Athersys, Inc. ( NASDAQ: ATHX ) shares rallied Friday after the regenerative medicine company announced an amended Securities Purchase Agreement in relation to a previously closed stock and warrants offering, which, according to its management, offered more financial flexibility.
- The counterparty to the deal is a healthcare-focused U.S. institutional investor who took part in the company’s registered offering that closed on Aug. 17.
- The deal includes terms to extend the exercise period of the warrants issued as part of the stock offering to seven years from five years, ATHX said in a pre-market announcement.
- In return, ATHX has issued additional warrants to the investor to purchase as many as 2M shares of common stock at an exercise price of $6.3850 over seven years, starting six months from the date of issuance.
- The deal “provides more financial flexibility going forward as well as a commitment for the investor that recently invested $12 million in Athersys to participate in future financings if requested,” Chief Executive of ATHX Dan Camardo noted.
- ATHX, which recently effected a reverse stock split, has yet to regain the Nasdaq listing requirement for the minimum closing bid price.
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Why did Athersys stock jump today? Amended agreement for warrants