Oxygen Biotherapeutics raises $5.4M through stock offering

Oxygen Biotherapeutics (Nasdaq: OXBT) has reached agreement with investors to raise some $5.4 million in capital through the sale of stock.

The shares will be sold at a sale price of $1.95.

OxyBio shares closed at $2.60 on Friday, down 16 cents. Its shares have ranged over the past year from a high of $28.40 to a low of $2.53.

“The proceeds from this transaction, along with our continued initiatives to reduce our cash burn rate, should provide us with the liquidity necessary to fund our projected operating requirements through the remainder of our fiscal year,” said Michael Jebsen, the company’s chief financial officer and interime chief executive officer.

Funds will be used for clinical trials of proposed products. , President and Interim Chief Executive Officer of Oxygen.

OxyBio also agreed to issue warrants for another 2.8 million shares at an exercise price of $2.60. The warrants are exercisable for six years. 

The offering is expected to close on Tuesday.