Seelos Therapeutics Announces Pricing Of $5.55 Mln Public Offering; Stock Drops

(RTTNews) - Seelos Therapeutics Inc. (SEEL) said that it has priced its underwritten public offering of 1.78 million shares of its common stock, pre-funded warrants to purchase up to 2.42 million shares of its common stock and accompanying common warrants to purchase up to 4.20 million shares of its common stock.

Each share of common stock and accompanying common warrant to purchase one share of common stock are being sold at a combined price to the public of $1.32 per share of common stock and accompanying common warrant and each pre-funded warrant and accompanying common warrant to purchase one share of common stock are being sold at a combined price to the public of $1.319 per pre-funded warrant and accompanying common warrant.

The pre-funded warrants will be immediately exercisable and will have an exercise price of $0.001 per share. The common warrants will be immediately exercisable, will have an exercise price of $1.32 per share and will expire on the date that is five years following the closing of the offering.

Seelos anticipates the gross proceeds from the offering will be about $5.55 million, before deducting the underwriting discounts and commissions and estimated offering expenses payable by Seelos, but excluding any exercise of the underwriters' option to purchase additional shares of common stock, pre-funded warrants and/or common warrants.

Seelos plans to use the net proceeds from the offering for general corporate purposes, the advancement of the development of its product candidates and to make periodic principal and interest payments under, or to repay a portion of, its outstanding convertible promissory note issued in November 2021, as amended.

The offering is expected to close on or about December 1, 2023.

SEEL closed Tuesday's regular trading at $2.38 down $0.81 or 25.37%. In the after-hours trade, the stock further dropped $0.50 or 21.01%.