Palatin Technologies, Inc. (NYSE: PTN) noticed its shares on the rise Friday. The company, a biopharmaceutical concern developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor system, today announced that it has entered into definitive agreements with a single healthcare focused institutional investor for the purchase and sale of 4,688,000 shares of its common stock (or common stock equivalents in lieu thereof) in a registered direct offering at a purchase price of $1.00 per share.
The Company also agreed to issue to the same investor in a concurrent private placement warrants to purchase up to an aggregate of 4,688,000 shares of common stock. The warrants being issued in the concurrent Private Placement will have an exercise price of $1.00 per share, will be exercisable beginning on the six-month anniversary of the date of issuance and will expire five and a half years from the date of issuance.
The closing of the Offering is expected to occur on or about this Monday, subject to the satisfaction of customary closing conditions. The gross proceeds from the Offering are expected to be approximately $4.7 million.
The Company intends to use the net proceeds from the Offering for general corporate purposes.
PTN shares picked up seven cents, or 7.1%, to $1.06.
