Biodexa Pharmaceuticals Plc ( BDRX ) shares are trading lower Wednesday after the company announced $7 million in gross proceeds from warrant exercises.

What Happened: Biodexa announced the exercise of previously issued warrants and an agreement between the company and several investors to exercise certain existing Series E and Series F warrants to purchase up to approximately 4.36 million of the company’s American Depositary Shares (ADS).

The existing warrants, issued on December 21, 2023, had initial exercise prices of $2.20. The company said that each exercise occurred at a reduced exercise price of $1.50 per ADS. In consideration for the immediate exercise of the existing warrants for cash, the exercising holders will receive new unregistered warrants to purchase up to 6.54 million ADSs. The replacement warrants will have an exercise price of $2.50 per ADS.

Gross proceeds are expected to total $7 million. Biodexa said it plans to use the net proceeds from the offering to advance its clinical stage assets, as well as for working capital and general corporate purposes.

The news comes after Biodexa shares rallied more than 83% on Tuesday after the company announced positive statistically significant findings from the Phase 2 clinical trial of eRapa in Familial Adenomatous Polyposis.

The results of the experiment showed eRapa, an oral tablet formulation of rapamycin, appeared safe and well-tolerated with a significant 24% reduction in the total polyp burden at six months compared with baseline, as well as an overall 83% non-progression rate.

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BDRX Price Action: Biodexa shares were down 36% at $1.49 at the time of publication, according to Benzinga Pro.