G Medical Innovations Holdings Ltd (GMVD) stock gained in the pre-market following the news of its announcement in a press release about its $12 million private placement. GMVD values at $5.40, gaining more than 9% from the previously closed value. The stock closed at $4.94 at the end of the previous trading session. The stock volume traded in the last trading session was approximately 3.81 million shares.
GMVD announced a $12 million private placement
An announcement was made today by G Medical Innovations Holdings Ltd (GMVD) confirming a securities purchase agreement with a single institutional investor.
An additional 2,400,000 ordinary shares will be issued in a private placement. Preliminary estimates indicate that the purchase price per common shares and a related warrant will be $5.00, resulting in estimated gross earnings of about $12 million, before excluding placement agent fees and other offering costs paid by the Company. Upon issuance, the warrants will have an exercise price of $5.00 per ordinary share, will be exercisable instantly, and have an expiration date of five years from the date of issuance.
The private placement will close on or about February 2, 2022. According to the press release, the funds raised from the share sale would repay current loans and work capital.
For the private placement, A.G.P./Alliance Global Partners serves as the sole placing agent on behalf of the underwriters.
The effect on the GMVD stock
The announcement of the private placement has a significant effect on the stock. Its stock surged in the pre-market. Pre-market is a volatile trading session as most investors trade in the regular trading session. Despite it, the investors were responding positively to the stock.
Conclusion
The company is looking forward to using the proceeding in different business operations. It will help them pay current loans and use the remaining cash as working capital.
