Investing.com -- Intelligent Bio Solutions Inc. (NASDAQ:INBS) stock fell 21.3% in after-hours trading Wednesday following the company's announcement of a $10 million private placement with two healthcare-focused institutional investors.
The medical technology company, which develops rapid, non-invasive testing solutions, will issue nearly 2.3 million shares of common stock (or pre-funded warrants) along with Series K-1 and K-2 warrants at a combined purchase price of $4.35 per share. Both warrant series will have an exercise price of $4.10 per share, exercisable immediately upon issuance with a five-year term.
The private placement is expected to close around January 2, 2026, pending customary closing conditions. Ladenburg Thalmann & Co. Inc. is serving as the exclusive placement agent for the transaction.
Intelligent Bio Solutions indicated that proceeds from the offering will be used for working capital and general corporate purposes. The placement was priced at-the-market under Nasdaq rules.
The deal includes warrants to purchase up to an aggregate of approximately 4.6 million additional shares - split equally between the Series K-1 and Series K-2 warrants. These warrants will become exercisable once a registration statement registering the underlying shares is declared effective by the SEC.
The significant stock decline suggests investors may be concerned about potential dilution from the new share issuance and associated warrants.
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