MOUNTAIN VIEW, Calif. - Aditxt, Inc. (NASDAQ: ADTX), a biotech innovation company, has announced agreements for a private placement valued at approximately $4.2 million. The placement includes the sale of convertible and preferred stock, alongside warrants to purchase common stock, with the transaction expected to close around May 6, 2024.
The company is issuing 4,186 shares of Series C-1 Convertible Preferred Stock and an equal number of Series D-1 Preferred Stock. The Series C-1 stock, with a stated value of $1,000 per share, is convertible into roughly 1.65 million common shares at $2.47 each. Series D-1 stock allows holders to vote on common stock proposals, particularly those concerning the increase of authorized common stock shares.
Additionally, warrants exercisable six months post-issuance at $2.595 per share will be issued, expiring five years from the date of issuance.
Dawson James Securities is the exclusive placement agent for the offering. The gross proceeds are earmarked for obligations under Aditxt’s merger agreement with Evofem Biosciences (OTC:EVFM), Inc., with the remaining funds allocated for working capital and general corporate purposes.
The securities in this private placement are offered under Section 4(a)(2) of the Securities Act of 1933 and/or Regulation D, meaning they are not registered and thus cannot be sold in the U.S. without registration or an exemption. Aditxt has committed to filing a registration statement with the SEC for the resale of the shares underlying the Series C-1 Convertible Preferred Stock and warrants.
The information in this article is based on a press release statement from Aditxt, Inc.
InvestingPro Insights
As Aditxt, Inc. (NASDAQ: ADTX) navigates through its strategic financial maneuvers with the recent private placement, investors and market watchers are closely monitoring the company's performance metrics. According to InvestingPro data, Aditxt's market capitalization stands at a modest $4 million, reflecting the size and scale of the company within the biotech sector. The company's revenue for the last twelve months as of Q4 2023 was reported at $0.65 million, indicating the challenges faced in generating significant sales. This is further underscored by a notable gross profit margin of -17.31%, suggesting that the company is currently not making a profit on its sales.
InvestingPro Tips highlight several critical points for potential investors. Aditxt is currently operating with a significant debt burden and analysts do not anticipate the company will be profitable this year. Additionally, the company is quickly burning through cash which could raise concerns about its financial sustainability. These factors are essential to consider, especially when evaluating the company's future in a highly competitive and capital-intensive industry like biotechnology.
For those interested in a deeper analysis, there are over 14 additional InvestingPro Tips available that can provide further insights into Aditxt's financial health and market performance. These tips can be accessed through the InvestingPro platform, and to enhance your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. The next earnings date is slated for May 10, 2024, which will be a key event for investors to gain updated insights into the company's financial trajectory and operational progress.
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