Creative Medical Technology Holdings Secures $3.7 Million Deal
Creative Medical Technology Holdings Enhances Capital Position
In a significant move to enhance its financial standing, Creative Medical Technology Holdings, Inc. (NASDAQ: CELZ), a frontrunner in regenerative medicine, has announced new agreements aimed at exercising existing warrants. This initiative will provide the company with approximately $3.7 million in gross proceeds, which is expected to fuel its ongoing projects and innovation in the biotechnology sector.
Details of the Warrant Exercise Agreements
The agreements involve certain holders of already issued warrants, allowing them to exercise the right to purchase a total of 837,104 shares of common stock at an exercise price of $4.42 per share. This strategic decision was made to take advantage of favorable market conditions and solidify the company’s funding base for the future.
Financial Advisory Support
Roth Capital Partners has stepped in as the financial advisor for this transaction, ensuring the company navigates this process smoothly and effectively. Their expertise is expected to optimize the outcome of these agreements, ensuring that stakeholders gain maximum value from this capital raise.
Issuance of New Warrants
As part of the agreement, for the immediate exercise of the existing warrants, the company also plans to issue new warrants to purchase additional shares. These new unregistered warrants will allow the purchase of up to 1,674,208 shares at a lower exercise price of $3.75 per share, which is quite appealing for potential investors. The new warrants are set to be exercisable for five years following the approval from shareholders.
Anticipated Closing of the Transaction
The company expects the transaction to finalize shortly, contingent upon standard closing conditions. The net proceeds from this funding will be used primarily for working capital and other corporate needs, reinforcing Creative Medical Technology Holdings’ commitment to advancing its innovative therapies.
Legal Considerations and Compliance
The new warrants and the associated shares will be offered through a private placement that complies with the Securities Act of 1933. This means that while these securities will not be registered at the time of the offering, the company has committed to filing the necessary registration statement with the SEC in the future to cover potential resales of these shares.
Commitment to Transparency and Compliance
Creative Medical Technology Holdings is dedicated to maintaining transparency with its investors by following the required legal protocols in the financial markets. This commitment helps to ensure that stakeholders are fully informed about the company’s financial health and operational strategies.
About Creative Medical Technology Holdings, Inc.
Creative Medical Technology Holdings, Inc. continues to make strides in the biotechnology arena, focusing on regenerative therapies across various fields such as immunotherapy and orthopedics. With its stock traded on NASDAQ under the symbol CELZ, the company is positioned to leverage its innovative research and development efforts to bring groundbreaking therapies to market.
Engaging with Investors
The company is engaged with its investor community and emphasizes open communication about its developments and offerings. Interested parties can reach out directly for insights and updates regarding their newer initiatives aimed at capital growth and dissemination of innovative solutions.
Frequently Asked Questions
What is the purpose of the warrant exercise agreements?
The agreements aim to raise approximately $3.7 million in gross proceeds to support working capital and general corporate purposes.
Who is advising Creative Medical Technology Holdings on this transaction?
Roth Capital Partners is acting as the financial advisor for the warrant exercise agreements, ensuring effective navigation of the financial aspects.
What are the new warrants that the company is issuing?
The new warrants allow the purchase of up to 1,674,208 shares of common stock at an exercise price of $3.75 per share, exercisable for five years after shareholder approval.
How does this transaction benefit shareholders?
This transaction provides the company with additional funds, which can enhance its operational capabilities and growth potential, ultimately benefiting shareholders.
How does Creative Medical Technology Holdings ensure compliance?
The company plans to file a registration statement with the SEC for the shares issuable under the new warrants, adhering to necessary legal and regulatory frameworks.
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