Decoy Therapeutics (DCOY) entered into a warrant inducement agreement with an existing institutional investor that is expected to generate $3.85 million in gross proceeds.
Under the agreement, the undisclosed investor will exercise 1.18 million Series B milestone warrants at a reduced price of $3.25 a share, Decoy said Tuesday in a statement. The exercise prices of the company's outstanding Series A and Series C milestone warrants will also be cut to $3.25 from $5.91.
In exchange for the immediate exercise, the investor will receive new warrants to purchase up to 2.37 million shares at $3.25 each, subject to stockholder approval before they become exercisable.
The company plans to use the net proceeds for working capital and general corporate purposes. The transaction is expected to close around Wednesday.
Decoy's stock rose 31% in Tuesday trading as intraday volume topped 97.5 million shares, compared with the daily average of 255,339.
Price: $3.34, Change: $+0.78, Percent Change: +30.51%