Reviva Dives on Stock Offering
Reviva Pharmaceuticals Holdings, Inc. (NASDAQ: RVPH) began trading Thursday well below Wednesday’s close.
The Cupertino, Calif.-based company, a late-stage pharmaceutical concern developing therapies that seek to address unmet medical needs in the areas of central nervous system, inflammatory and cardiometabolic diseases, today announced the pricing of its previously announced public offering with existing and new healthcare focused institutional investors for the purchase and sale of 20,000,000 shares of its common stock (or common stock equivalents in lieu thereof) together with Series C warrants to purchase up to 20,000,000 shares of common stock and Series D warrants to purchase up to 20,000,000 shares of common stock at a combined offering price of $0.50 per share and accompanying warrants, for aggregate gross proceeds of approximately $10 million before deducting placement agent fees and other offering expenses.
The Series C Warrants and the Series D Warrants will have an exercise price of $0.50 per share. The Series C Warrants will be exercisable immediately and will expire five years from the issuance date. The Series D Warrants will be exercisable immediately and will expire 12 months from the issuance date.
The closing of the offering is expected to occur on or about June 27, subject to the satisfaction of customary closing conditions.
The Company currently intends to use the net proceeds from the offering to fund research and development activities and for working capital and other general corporate purposes.
RVPH shares dropped 40 cents, or 53%, to 36 cents.
