Why Purple Biotech (PPBT) Shares Are Trading Lower

Author: Henry Khederian | July 01, 2024 02:21pm

Purple Biotech Ltd – ADR (NASDAQ:PPBT) shares are trading lower by 11.5% to $0.37 during Monday’s session after the company announced the exercise of warrants for $2 million gross proceeds.

What Happened?

Purple Biotech has entered into agreements for the exercise of existing warrants to purchase 5,633,509 American Depositary Shares (ADSs) at a reduced price of $0.36 per ADS, down from their original prices of $1.25 to $20.00 per ADS. This move involves warrants originally issued in October 2023, June 2020, January 2019, and June 2018. The offering, expected to close around July 2, is facilitated by H.C. Wainwright & Co.

In return for the immediate exercise of these warrants, Purple Biotech will issue new unregistered Series A-1 and A-2 warrants, allowing the purchase of up to 4,979,383 and 6,287,635 ADSs, respectively, at $0.40 per ADS. The A-1 warrants are valid for five years, and the A-2 warrants are valid for two years from the issuance date.

The exercise of the existing warrants is expected to generate approximately $2 million in gross proceeds, which Purple Biotech will use to develop its oncology therapies and for general corporate purposes.

Read Also: What's Going On With GameStop Stock Monday?

How To Buy PPBT Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Purple Biotech’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, PPBT has a 52-week high of $1.80 and a 52-week low of $0.30.

Posted In: PPBT