Cesca Therapeutics Inc. priced a public offering of 9,166,667 of its units at 60 cents apiece to raise about $5.5 million, excluding the proceeds from the exercise of the warrants.
Each unit comprises one common share and a warrant to buy one common share.
The warrants will be exercisable immediately at an exercise price of 60 cents per share and will expire five years from the date of issuance. The common shares and the accompanying warrants can only be purchased together in this offering but will be issued separately.
The offering is expected to close May 18.
Cesca plans to use the net proceeds for general corporate purposes, including working capital. The company will also use the proceeds to pay accrued but unpaid interest of about $657,000 under Cesca's revolving line of credit.
H.C. Wainwright & Co. is acting as exclusive placement agent for the offering.
Rancho Cordova, Calif.-based Cesca Therapeutics develops, commercializes, and markets a range of automated technologies and products for cell-based therapeutics.