Eton Pharmaceuticals Inc. (NASDAQ: NASDAQ:ETON) has called off its previously announced financing deals following an unsuccessful bid at an auction for the assets of Eiger BioPharmaceuticals, Inc., according to a recent 8K filing. The pharmaceutical company had entered into agreements to sell shares and warrants, and to expand its credit facility, contingent upon winning the auction held on Wednesday.
Specifically, Eton Pharmaceuticals had agreed to issue and sell 1,287,500 shares of common stock at $3.50 per share, aiming to raise approximately $4.5 million. Moreover, agreements were in place to issue pre-funded warrants for 2,462,500 shares, which would have generated about $8.6 million, also at $3.50 per share.
The expansion of the existing credit facility would have increased it by $21.9 million to a new total of $27.0 million. The company also agreed to issue a warrant for up to 358,976 shares of common stock at $3.66 per share to the lender as part of the credit facility agreement.
The completion of these transactions was dependent on Eton Pharmaceuticals emerging as the winning bidder in the auction for certain assets of Eiger BioPharmaceuticals. However, the company did not succeed in this bid and as a result, the planned transactions have been terminated and are no longer in effect.
The cancellation of these transactions means that Eton Pharmaceuticals will not receive the anticipated funding from the share sale and warrant issuance, nor will it benefit from the increased borrowing capacity that would have resulted from the credit facility expansion.
This development is a significant event for Eton Pharmaceuticals and its investors, as it affects the company's immediate financial strategies and potential growth opportunities. The information is based on the latest 8K filing by the company.
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