WESTMINSTER — Less than a week after Arca Biopharma Inc.’s (Nasdaq: ABIO) stock quadrupled in value in a single day amid news that one of its drug candidates showed promise in treating blood clotting seen in some COVID-19 patients, the Boulder firm announced a direct stock offering with institutional investors valued at about $9.4 million.
JonesTrading Institutional Services LLC is the exclusive placement agent for the offering.
The purchase price for the direct offering was $8.999, a significant discount from May 28’s closing price of $19.72.
The direct offering news sent the company’s stock tumbling more than 26.98% to $9.20 in early trading Monday.
Last Thursday, Arca said it will begin development to see if its drug candidate AB201 could be used to reduce blood clots and inflammatory responses induced by the immune system for certain patients of the disease. The drug is being developed as an anti-clotting agent for heart attack patients, but clotting has also manifested in other highly infectious diseases such as Ebola.
AB201 has already passed Phase II clinical testing showing general safety, the company said, which could give it a head start toward the market if approved by federal regulators. ARCA said it plans to file a new drug application with the U.S. Food and Drug Administration in the third quarter of this year and launch additional clinical tests in the second half of the year.
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