ABVC BioPharma Shares Decline following Securities Purchase Agreement

by webmaster

ABVC BioPharma’s shares took a hit, falling by 19% to $4.32, after the company entered into a definitive securities purchase agreement. The agreement involved a single institutional investor who would purchase $1.75 million worth of ABVC BioPharma’s common stock through a registered direct offering.

A Promising Partnership

Despite this setback, ABVC BioPharma experienced a surge in stock prices on Wednesday. The stock closed the session with a 40% increase after the company signed a term sheet to advance a partnership with Zhonghui United Technology Group and its affiliated enterprises.

Offering Details

As part of the offering agreement, ABVC BioPharma agreed to sell 500,000 shares and/or pre-funded warrants through a registered direct offering. The purchase price per share of common stock is set at $3.50, while the pre-funded warrants will be sold at an identical price, minus an exercise price of one cent per share.

Utilizing the Proceeds

ABVC BioPharma intends to allocate the proceeds from the offering towards research and development of their programs, working capital, and other general corporate purposes. This may also include the possibility of repaying outstanding debt.

Closing Expectations

The closing of the offering is anticipated to take place on or around Monday.

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