GRI Bio, Inc. (NASDAQ: GRI) shares dropped sharply Friday. The biotechnology company advancing an innovative pipeline of Natural Killer T cell modulators for the treatment of inflammatory, fibrotic and autoimmune diseases, today announced the pricing of its “reasonable best efforts” public offering (with participation from healthcare focused institutional investors for the purchase and sale of 5,000,000 shares of common stock (or common stock equivalents in lieu thereof) at a purchase price of $1.10 per share.
The Company further agreed to issue to the investors Series B-1 Warrants to purchase up to 5,000,000 shares of common stock and Series B-2 Warrants to purchase up to 5,000,000 shares of common stock. The Series B-1 and Series B-2 Warrants will have an exercise price of $1.10 per share, will be exercisable immediately following the date of issuance and will expire in five years and eighteen months, respectively.
The closing of the Offering is expected to occur on or about February 6 (this coming Tuesday), subject to the satisfaction of customary closing conditions. The gross proceeds from the Offering are expected to be approximately $5.5 million. The Company intends to use the net proceeds from the Offering for working capital and other general corporate purposes.
GRI shares fell 51 cents, or 26.2%, to $1.44.