PALO ALTO, CA - 180 Life Sciences Corp. (NASDAQ:ATNF), a biotechnology firm transitioning into the iGaming and entertainment industry with a current market capitalization of $5.59 million, has disclosed a securities purchase agreement with several institutional investors. The company's stock has shown remarkable momentum, delivering a 52% return in the past week, according to InvestingPro data. The agreement involves the sale of 1,200,000 common stock shares in a registered direct offering, priced according to Nasdaq rules. The company is also conducting a private placement to issue warrants for purchasing an equivalent number of shares.
The combined effective price for each share and corresponding warrant is set at $2.41. These warrants, with an exercise price of $2.28 per share, will be immediately exercisable and are set to expire five and a half years from the issue date. With the stock currently trading at $2.83 and showing high price volatility, InvestingPro analysis indicates the company's overall financial health score stands at 2.06, rated as 'FAIR'.
180 Life Sciences anticipates gross proceeds of approximately $2.9 million from the offerings, before accounting for placement agent fees and other related expenses. The expected closing date of the offering is on or about December 30, 2024, contingent on customary closing conditions.
Maxim (NASDAQ:MXIM) Group LLC is serving as the sole placement agent for the offering. The common stock shares are offered under a shelf registration statement, which was declared effective by the U.S. Securities and Exchange Commission (SEC) on June 24, 2022. The warrants and shares from the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and are being offered under Section 4(a)(2) and Regulation D.
The press release clarifies that this announcement does not constitute an offer to sell these securities, nor a solicitation of an offer to buy in any jurisdiction where such an offer or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.
180 Life Sciences has been known for its work in advancing treatments in the biotechnology field and is now leveraging its expertise to enter the online gaming market, which includes a focus on cryptocurrency and blockchain technologies. Financial metrics reveal challenges ahead, with a current ratio of 0.19 indicating potential liquidity concerns. For deeper insights into the company's transition and financial outlook, InvestingPro subscribers have access to over 10 additional exclusive ProTips and comprehensive financial analysis tools.
This news is based on a press release statement and does not endorse the company's claims or future prospects. Investors are advised to consult the SEC's website or contact Maxim Group LLC for further details regarding the offering.
In other recent news, 180 Life Sciences Corp. reported significant developments. The company's CFO, Omar Jimenez, resigned recently, with Interim CEO Blair Jordan assuming the role of principal financial and accounting officer. The company also set the date for its 2024 Annual Meeting of Shareholders, though the dates are subject to change. The company has made strides in its operations, adding tech executive Jay Goodman to its board and entering the online gaming industry with the acquisition of a back-end gaming platform.
180 Life Sciences Corp. also entered into a warrant inducement agreement, generating $3.32 million in gross proceeds before expenses. The company issued new warrants and saw the full cash exercise of existing ones. This financial boost aims to advance the commercialization of the company's gaming technology platform.
In the biotechnology field, the company disclosed preliminary findings of a clinical pharmacology study, where one of its cannabidiol (CBD) formulations outperformed the FDA-approved epilepsy drug, Epidiolex. Lastly, 180 Life Sciences Corp. has regained compliance with Nasdaq's minimum stockholders' equity requirement and has been granted an extension to remain listed on The Nasdaq Stock Market, provided it meets specific conditions. These are the recent developments surrounding 180 Life Sciences Corp.
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