09:24 AM EDT, 03/28/2024 (MT Newswires) -- CervoMed ( CRVO ) on Thursday priced a private sale of around 2.5 million units that are each composed of a share of common stock and a pre-funded warrant to purchase another share for $19.745.

The private placement, expected to close Monday, is with a group of institutional and accredited healthcare investors, the company said.

The company anticipates gross proceeds from the private placement to be approximately $50 million, and up to an additional approximately $99.4 million in gross proceeds if the warrants are fully exercised for cash. The company intends to use the net proceeds from the financing to fund research and development of its clinical-stage product candidate, neflamapimod, working capital, and general corporate purposes.

Shares of the company were up 17% in Thursday's premarket activity.

Price: 23, Change: +3.38, Percent Change: +17.23