Longeveron Shares Fall After Raising $20M Capital Via Equity

Longeveron Inc LGVN has announced a private placement of approximately $20.5 million of its common stock and warrants.
The purchase price for one share of common stock and one corresponding warrant will be $17.50.
Under the securities purchase agreement terms, the Company has agreed to sell approximately 1.17 million shares and warrants to purchase 1.17 million shares of common stock.
The warrants have an exercise price of $17.50 per share with an expiry of 5 years.
The offering is expected to close by December 3.
Longeveron will use the proceeds to support the ongoing clinical development of Lomecel-B, its lead investigational product, which is currently being evaluated as a potential therapeutic for Hypoplastic Left Heart Syndrome, Aging Frailty Alzheimer's Disease, and other diseases.
Related Link: Longeveron Announces Clinical Collaboration To Study Cell Therapy Aging Treatment In Japan: Why It Matters.
Price Action: LGVN shares are down 20.6% at $20.85 premarket on the last check Wednesday.