Hoth Therapeutics experienced a 23% drop in its stock price, settling at $2.07, following the pricing of its registered direct offering. The offering involved the issuance of 1.1 million shares at $2.63 per share. Simultaneously, Hoth will also carry out a private placement in which it will offer unregistered warrants to buy up to 1.1 million shares of its common stock.
Despite the dip in stock price, earlier in the day, Hoth’s shares had seen a positive surge of over 10%. This increase can be attributed to the announcement of promising preclinical results for its latest development, HT-KIT. HT-KIT is a new molecular entity designed to treat advance systemic mastocytosis.
The warrants issued as part of the private placement will have an exercise price of $2.505 per share and can be exercised immediately upon issuance for a period of five years.
The expected closing date for both the registered direct offering and the concurrent private placement is Friday. Pending the completion of these transactions, Hoth anticipates gross proceeds of approximately $2.89 million. These funds will be allocated towards general working capital needs.
Contact Chris Wack for more information.