• The Week’s Only Closed Equity Deals
  • On November 28, 2023, Seelos Therapeutics (SEEL: Nasdaq), a clinical-stage biopharmaceutical company engaged in the development of products that address significant unmet needs in Central Nervous System (CNS) disorders and other rare disorders, completed a $5.55M Underwritten Public Offering of Units
  • 24M units were sold at $1.32 per unit
  • Each unit consisted of one common share and one five-year warrant with a strike price of $1.32 per share. (0% premium)
  • The net share price of $0.87 was 34% lower than the unit price, reflecting the high value of the long-maturity zero premium warrants. The issue increased the total share count by 36%, and combining these factors produced an enormous discount of 63% to pre-announcement share price levels.
  • The raise implies a $14M market cap and an enterprise value of $37M.
  • Seelos is difficult to value. It is essentially pre-revenue, trading at nearly 23x annualized revenues. It also has negative book equity, making market-to-book ratios unusable. The company’s stock is down approximately 75% over the last month.

Public vs. Private Raises: 

• Two of the five capital-raising companies are public. Both trade in the U.S. (one on Nasdaq and one on OTC) and one in Canada on the CSE.

Equity vs. Debt Cap Raises: 

• Equity accounted for 22.0% of the week’s capital raised.