CNS Pharmaceuticals, Inc. (NASDAQ:CNSP) noticed its shares ballooning in Wednesday trading. The Houston-based biopharmaceutical company specializing in the development of novel treatments for primary and metastatic cancers in the brain and central nervous system announced it has entered into securities purchase agreements with health-care focused institutional investors for the purchase and sale of 1,425,000 shares of common stock in a registered direct offering and warrants to purchase up to 1,425,000 shares of common stock in a concurrent private placement (together with the registered direct offering, the "Offering") at a combined purchase price of $1.39 per share. The warrants issued pursuant to the concurrent private placement will have an exercise price of $1.26 per share, will be exercisable immediately following the date of issuance and will expire five years from the initial exercise date.
The closing of the Offering is expected to occur on or about Friday of this week, subject to the satisfaction of customary closing conditions. The gross proceeds from the Offering are expected to be approximately $1.98 million before deducting financial advisory fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.
NS Pharmaceuticals a clinical-stage pharmaceutical company developing a pipeline of anti-cancer drug candidates for the treatment of primary and metastatic cancers of the brain and central nervous system. The Company's lead drug candidate, Berubicin, is a novel anthracycline and the first anthracycline to appear to cross the blood-brain barrier.
CNSP shares neared noon EDT Wednesday ahead of the previous day’s close by 93 cents, or 73.8%, to $2.19.
