Benzinga | Feb 4, 2021 10:53AM EST

Equillium Raises $30M Via Equity, Shares Rally

* Equillium Inc (NASDAQ: EQ) has entered into a securities purchase agreement with Decheng Capital to purchase around 4.3 million units from Equillium at $7 per unit, equivalent to gross proceeds of $30 million. EQ's closing price as of Wednesday was $6.62 per share.

* Each unit consists of one common stock and a warrant to purchase 0.3 of common stock. The five-year warrants will have an exercise price of $14 per share.

* Net proceeds will be used to primarily fund the development of the itolizumab pipeline, potential acquisitions and development of new products, and for working capital and general corporate purposes.

* The direct offering is expected to close by February 5.

* Price Action: EQ shares are trading higher by 19.2% at $7.90 on the last check Thursday.