What's Going On With GT Biopharma Stock Tuesday?
GT Biopharma (NASDAQ:GTBP) shares rose Tuesday morning before pulling back and turning negative after the company announced a direct offering.
The Details: GT Biopharma entered into a definitive securities purchase agreement for the purchase and sale of 740,000 shares of its common stock at a purchase price of $4.35 per share. The shares will be offered in a registered direct offering priced at-the-market under Nasdaq rules. Roth Capital Partners is acting as the exclusive placement agent for the offering.
In a concurrent private placement, the company announced it will issue warrants allowing the purchase of up to 740,000 shares of its common stock. The warrants will be immediately exercisable at a price of $4.35 per share and will be valid for five years from issuance.
Before deducting the placement agent’s fees and other expenses, the company anticipates raising approximately $3.2 million. GT Biopharma noted that it plans to use the proceeds for general corporate purposes. The offering is expected to close on or about May 23.
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GTBP Price Action: GT Biopharma shares were halted on the circuit breaker Tuesday morning. The stock was down 22.1% at $6.07 at the time of writing, per Benzinga Pro.
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