Xenetic Biosciences(NASDAQ:XBIO) is continuing a great month for itself. The company is seeing a healthy boost this morning on news of a private placement funding round, just days after it was carried higher by a partners’ expansion news. So, what are the details around this lucrative sale that are allowing XBIO stock to shoot upward again today?
Xenetic is a biopharmaceutical outlet based in Massachusetts; the company specializes primarily in the development and production of cell-based therapeutics that target tumors. The company has been on investors’ radar since last week. XBIO stock shot upward upon announcement that exclusive licensing partner Takeda Pharmaceuticals(NYSE:TAK) would beexpanding its Thousand Oaks facility. This particular facility in California happens to be where Takeda manufactures its biologic products. Since Xenetic’s PolyXen drug-delivery platform is crucial to the manufacturing process, it sent XBIO stock soaring.
XBIO is up once again today, although this news is entirely the product of Xenetic, rather than a partner. The company isannouncing a coming private placementworth $12.5 million. The company will be selling over 4.6 million XBIO shares to a single healthcare-focused investor. These shares are trading at $2.70 each, per the announcement. The agreement with this institutional investor additionally sees the issuance of warrants to purchase up to 4.6 million shares of common stock at $3.30 a share.
XBIO Stock Bolstered by Private Sale
The potential proceeds of this sale could be as high as $15.3 million for Xenetic’s balance sheet. The company says it will use all proceeds for general working capital purposes. And although we don’t yet know who the investor in this sale is, it’s promising to see hefty institutional support.
The sale is working wonders for XBIO stock today. XBIO shares are up over 27% on the day so far, representing growth of 67 cents. Over 101 million shares of XBIO are trading hands today as well, far greater than the daily average of just 5.2 million.