Benzinga | Feb 17, 2021 06:52AM EST

Aikido Pharma Slumps On $75M Upsized Equity Offering Issued At 25% Discount

* Aikido Pharma Inc (NASDAQ: AIKI) has increased the size of the previously announced public offering to 46.8 million shares at $1.60 per share, with gross proceeds of $75 million. The previous offering included 6.25 million shares for gross proceeds of a mere $10 million.

* The offer price is at a 25% discount from the last close price of $2.13 on Tuesday.

* H.C. Wainwright & Co. is acting as the sole book-running manager for the offering, which is expected to complete by February 19.

* Underwriters have an option to purchase up to an additional 7.03 million shares.

* AIKI plans to use the net proceeds for working capital and general corporate purposes.

* Yesterday, AIkido executed a Letter of Intent with Silo Pharma Inc (OTC:SILO) to grant to AIkido a worldwide, exclusive sublicense for the use of peptide therapy, combined with psilocybin, in the treatment of neuroinflammatory disease in cancer patients. This Letter of Intent is in addition to the AIkido Pharma and Silo agreement announced in January.

* Last month, the company regained its NASDAQ compliance for continued listing.

* Price Action: AIKI dropped 21.1% at $1.68 in premarket trading on the last check Wednesday.