Assembly Biosciences Inc (ASMB)

[DewDiligence]

ASMB raises additional $12.6M from GILD and Armistice Capital in warrant-laden transactions:

https://www.globenewswire.com/news-release/2024/06/17/2899596/16259/en/Assembly-Biosciences-Announces-12-6-Million-in-Equity-Financings.html

Assembly Bio sold 634,500 shares of common stock and warrants to purchase up to 634,500 shares to Armistice Capital, and sold 179,500 shares of common stock and warrants to purchase up to 179,500 shares to Gilead, in each case, at a combined price of $15.46 per share of common stock and accompanying warrant. The warrants have an exercise price of $17.00 per share of common stock, will be immediately exercisable and will expire on June 18, 2029.

Assembly Bio currently expects to use the net proceeds from the equity financings for general corporate purposes [i.e. for clinical trials in HBV and HDV].

Taking into account the Black-Scholes value of the warrants described above, the effective share price paid by GILD and Armistice was a steep discount to the prevailing market price.

Inasmuch as ASMB’s stock has a low or negative enterprise value, GILD and Armistice are not incurring much risk in buying here.