Fibrobiologics Inc saw its stock fall by almost nine percent on Wednesday. This came right after the company announced that it is raising four million dollars through a special stock offering. The deal is priced at the current market rate under Nasdaq rules.
The company is selling more than three and a half million new shares. It is also giving out pre funded warrants that allow the buyer to later turn them into over eight and a half million shares. All of this is going to an existing shareholder. Each share or warrant is priced at about thirty three cents.
The surprising part is that the buyer is not paying in cash. They are paying with government issued gold coins. These coins are very pure gold and are valued at a little over four thousand dollars per ounce.
Along with this, the company is doing another private deal. In that deal it will give out more warrants that can be turned into a little over twelve million shares at the same price. If the investor chooses to use all of these later and pays in cash the company could get another four million dollars.
The chief executive Pete O’Heeron said he is thankful for the continued support of the big investor. He said this deal will help the company improve its finances and stay focused on its long term goals.
The company plans to use the money for general business needs. This includes paying off some debt. The offering should be completed around November nineteenth in twenty twenty five if all normal conditions are met.
Fibrobiologics works on treatments and possible cures for long term diseases using fibroblasts. The company has more than two hundred seventy patents issued or waiting for approval.