Benzinga | Jun 8, 2021 07:39AM EDT

Histogen Secures $6.5M Via Direct Equity Offering

* Histogen Inc (NASDAQ:HSTO) has raised $6.5 million from institutional investors by selling around 5.9 million shares at $1.10 per share in a registered direct offering priced at the market. HSTO's last closing price on Monday was $1.08.

* Concurrently, the company will also issue unregistered warrants to purchase up to an aggregate of 4.8 million shares.

* The offering is expected to close by June 9.

* H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

* The warrants have an exercise price of $1.00 per share, will be exercisable immediately upon issuance, and will expire in five and one-half years from the date of issuance.

* The gross proceeds of approximately $6.5 million will be used for working capital and general corporate purposes.

* Last week, HSTO decided to suspend the development of the HST 001 program in androgenic alopecia instead focus on orthopedic indication programs.

* Price Action: HSTO shares are down 8.33% at $0.99 during the premarket session on the last check Tuesday.