CNS Pharma Prices Public Offering Of 5 Mln Shares At $2/shr; Stock Plunges

(RTTNews) - CNS Pharmaceuticals Inc. (CNSP) said Wednesday that it has priced its underwritten public offering of 5 million shares of common stock and warrants to purchase up to 2.50 million shares of common stock.

The company will sell its common stock and warrants together at a combined public offering price of $2.00 per share and warrant.

The warrants will have an exercise price of $2.20 per share, will be immediately exercisable and will expire five years from the date of issuance.

The company noted that it has granted the underwriter a 45-day option to purchase up to an additional 750,000 shares of common stock and/or 375,000 warrants to cover over-allotments, if any.

The company plans to use the net proceeds from the offering for its Phase 2 trial for Berubicin, other research and development, and for working capital. The company expects to close the offering on or about December 28.

CNSP closed Tuesday regular trading at $2.10, down $0.37 or 14.98%. The stock further dropped $0.24 or 11.43% to $1.86 in Wednesday pre-market trading.