First Wave BioPharma Prices Direct Offering Of 525,625 Shares; Stock Slips 22% In Pre-market

(RTTNews) - First Wave BioPharma, Inc., (FWBI), a biopharmaceutical firm focused on the development of targeted, non-systemic therapies for gastrointestinal diseases, announced on Monday that it has entered into a deal with an institutional investor for a direct offering of 525,625 shares for $7.61 per share.

In addition, in a concurrent private placement, First Wave will issue warrants to purchase up to 525,625 shares. The warrants with a term of five years have an exercise price of $7.48 per share, which will be exercisable immediately following the date of issuance.

The gross proceeds from the offering, to be closed on or about March 6, are expected to be around $4 million.

The company intends to use the net proceeds for working capital and general corporate purposes.

Roth Capital Partners is acting as the exclusive placement agent for the transaction.

FWBI was trading down by 22.62 percent at $7.15 in the pre-market trade on the Nasdaq.