Atossa Genetics pops after receiving $10M from exercise of outstanding warrants

Shares of Atossa Genetics Inc (NASDAQ:ATOS) shot up Monday after the biopharmaceutical company revealed it has boosted its cash position and strengthened funds for working capital by receiving about $10 million from the exercise of outstanding warrants.

The warrants were issued by the Seattle company, which develops therapies to treat breast cancer, in its rights offering completed on May 30, 2018 and received on March 14 and 15.

READ: Atossa Genetics soars after FDA approves drug Endoxifen for single breast cancer patient

“The $10 million in cash proceeds significantly enhances our cash position and provides working capital for our ongoing and planned clinical studies,” said Kyle Guse, chief financial officer and general counsel of Atossa. “Moreover, the warrant exercises are essentially ‘non-dilutive’ because the warrants were previously outstanding and are now removed from our overhang.”

As a result of the warrant exercises, Atossa retired 2.5 million warrants and issued 2.5 million shares of common stock.

In response, Atossa shares climbed 33.6% to $4.69 in afternoon trade Monday.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors