Just a couple of hours ago Cybin (OTC: CLXPF) announced to offer common shares that are worth CAD$20 million. An underwriter company Canaccord Genuity Corp will pay that amount before selling the shares to the public since the stock isn’t listed in the national exchange yet.
That fundraising will actually go to new clinical trials, working capital, and covering significant expenses of current biotech developments. Currently, the company is struggling to reach positive earnings by boosting revenue diversification as the number of players in the biotech field is getting bigger to fight rare diseases and threatening viruses.
On Friday CLXPF rose 34% to $1.95 on over 1.6 million shares amid acquiring Adelia Therapeutics. In the upcoming week, CLXPF shares may soar above $2.50 as new investors will start buying more common shares from the underwriter bearing in mind that a new subsidiary will come to strengthen the company.
Finance and Entertainment Reporter
Richard is a bottle of wine – the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.