The share price of Xenetic Biosciences Inc. (XBIO) was down -9.78% in after-hours trading at $2.86. The XBIO stock closed last session at $3.17, an increase of 4.62% or $0.14. The Xenetic Biosciences traded between $2.56 and $3.72 throughout the day. The number of XBIO stock exchanged was 13.36 million, exceeding the daily volume of 9.1 million for the past 50 days and exceeding the volume for the year to date of 3.46 million.

XBIO stock has been declining 170.94% for the last 12 months, but has been gaining 80.11% for the past week. The XBIO stock has increased by 18.28% over the past six months, and it has increased by 49.53% over the past three months. XBIO stock is up 55.39% this year. After the private placement which was more expensive than the market, XBIO stock slumped.

What was that private placement?

As a biopharmaceutical company, Xenetic Biosciences, Inc. is working on XCART, a personalized CAR T platform engineered to identify patient- and tumor-specific neoantigens. In its initial research, XBIO is advancing cell-free therapeutics that target malignant B-cells on individual patients’ tumor cells for the treatment of B-cell lymphomas. A pipeline of therapeutic assets targeting oncology indications with high value can be generated by XCART.

A healthcare-focused institutional investor has entered a definitive agreement with Xenetic Biosciences, the company announced on Monday.

• XBIO has entered into a private placement priced at the market price of $2.70 per share to sell 4,629,630 shares of its common stock (or common stock equivalents).
• In addition, XBIO has also agreed to issue warrants for the purchase of up to 4,628,630 shares of common stock to the investor.
• Exercise price of the warrant to buy 4,629,630 shares of XBIO common stock is $3.30 per share.
• When the US Securities and Exchange Commission declare the registration statement for resale of the shares of common stock issuing on exercise of the warrants as effective, the warrants will be immediately exercisable and expire three and a half years later.
• XBIO anticipates closing the offering by July 28, 2021, assuming all customary closing conditions are satisfied.
• The placement agent for XBIO’s offering was H.C. Wainwright & Co.

What is likely to be the net proceeds for XBIO Stock?

Xenetic (XBIO) is expected to receive approximately $12.5 million gross proceeds from the offering before deducting placement agent fees. A fully exercised set of warrants would generate approximately $15.3 million in gross proceeds. Net proceeds from the offering will be used to support XBIO’s general working capital needs.