- The stock price of Mediwound (MDWD) fell by over 20% intraday today. This is why.
The stock price of Mediwound (MDWD) fell by over 20% intraday today.
Why: MediWound announced that it has entered into a definitive securities purchase agreement with several institutional and accredited investors for the sale and purchase of 7,575,513 shares of the company’s ordinary shares, par value NIS 0.01 at a purchase price of $1.75 per share in a registered direct offering. And pursuant to the registered direct securities purchase agreement, the company has agreed to issue to these investors unregistered warrants to purchase up to 7,575,513 ordinary shares in a concurrent private placement. These warrants will have an exercise price of $1.925 per ordinary share and will become exercisable upon the company’s receipt of shareholder approval to increase the number of its authorized ordinary shares, pursuant to the company’s amended and restated articles of association, and will expire 4 years thereafter.
Proceeds: The gross proceeds of the registered direct offering are expected to be approximately $13.26 million. And the company expects the Registered Direct Offering to close on or about September 26, 2022, subject to the satisfaction of customary closing conditions.