Just one day after its stock rose nearly 20%, the biotech DBV Technologies (DBVT 79.56%) saw a much stronger jump on Thursday. Shares of the company, which is developing a patch to treat peanut allergies, rose nearly 80%.
Still buoyed by the very positive clinical update it released Wednesday on Viaskin Peanut, DBV Technologies stock jumped again after delivering encouraging follow-up. On Thursday morning, the company announced that it would get cash to keep the development train going.
DBV receives $194 million in private equity investment (PIPE) financing from the sale of a combination of nearly 33 million of its common stock and pre-funded warrants granting holders the right to purchase more than 28 million.
The first titles are priced at 3 euros ($3.21) each, and the second will cost 2.90 euros ($3.11). Warrants are less expensive, as they take into account an exercise price of 0.10 euro ($0.11). That equivalent of $3.21 per share was, reasonably, Thursday’s closing price for France-based DBV. Nasdaq– listed shares.
Best of all, the common shares being sold are not registered in the United States, so there will be no dilution for existing investors in this market.
Management hasn’t specified what the funds they’re raising will be used for, but they probably didn’t need them. Viaskin Peanut is by far the biotech company’s biggest treatment, and since it has the potential to become a go-to treatment for a widespread condition, most of the money is sure to go to this program.