Artelo Biosciences Secures $11M AT Market Placement and Warrants for 6.38M Shares, $20.4M Potential
Artelo Biosciences closed a $11.0 million at-the-market private placement, issuing 3,188,407 common shares (or pre-funded warrants) and warrants for 6,376,814 shares at $3.45 per unit. Net proceeds will fund working capital, corporate purposes and bridge debt repayment, with warrant exercise potentially adding $20.4 million.
1. Private Placement Terms
On March 30, Artelo Biosciences completed a private placement under Nasdaq rules, selling 3,188,407 shares of common stock (or pre-funded warrants) and warrants for 6,376,814 shares. Each share and accompanying warrant unit was priced at $3.45, generating gross proceeds of $11.0 million before fees.
2. Use of Proceeds
Net proceeds from the sale are earmarked for working capital, general corporate purposes and the repayment of bridge debt that was previously taken on by the company. This financing is expected to extend the company’s cash runway as it advances its clinical-stage therapeutic programs.
3. Warrants and Potential Additional Funding
The warrants issued in the placement allow for the purchase of up to 6,376,814 additional shares, which if fully exercised at the $3.45 price, would provide an incremental $20.4 million to the company. There is no assurance that the warrants will be exercised before expiration and the additional funding is contingent on holder actions.