11:03 AM EDT, 09/11/2024 (MT Newswires) -- Synaptogenix ( SNPX ) shares were slumping 19% Wednesday morning after the biopharmaceutical company said it entered agreements to raise $5 million in funding via the sale of its series C convertible preferred stock to existing investors.

The public offering and a concurrent private placement of 5,000 convertible preferred shares were priced at $1,000 apiece with an initial conversion price of $4 and paying a 5% yearly coupon, Synaptogenix ( SNPX ) said. The investors also received five-year warrants to buy an equal amount common stock exercisable at $4 per share, the company said.

After first paying placement fees and other offering costs, Synaptogenix ( SNPX ) expects to use the net proceeds for general corporate purposes, including research and development, clinical testing and capital projects as well as working capital, it said. The transactions are expected to close on or about Thursday, subject to customary closing conditions. .

Price: 2.89, Change: -0.68, Percent Change: -19.05