In a surprising turn of events, First Wave BioPharma, Inc. (FWBI) showcased a remarkable performance in the after-hours trading session today. The stock witnessed a substantial surge, with its price soaring to $5.3, marking an extraordinary change of 38.743%.
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Notably, the trading volume during this after-hours session reached an impressive 1.06 million shares, signaling heightened investor activity and significant market interest.
This unexpected and notable after-hours movement positions FWBI as a focal point for investors and market enthusiasts alike, prompting a closer examination of the factors contributing to this substantial shift in the stock’s valuation.
What happened Recently:
On December 27, 2023, First Wave BioPharma, Inc. (NASDAQ: FWBI) disclosed that it has engaged in agreements with specific holders of its existing warrants, enabling them to exercise warrants for a total of 881,337 shares of its common stock.
The exercise of these warrants is set at a reduced price of $5.50 per share, leading to the anticipation of aggregate gross proceeds of approximately $4.8 million. This calculation is made before considering financial advisory fees. The adjustment in the exercise price for the existing warrants and the issuance of new warrants were executed in adherence to Nasdaq rules and structured as an at-market transaction.
Furthermore, on December 27, 2023, First Wave BioPharma, Inc. (NASDAQ: FWBI) provided additional updates, revealing that it has entered into a non-binding term sheet outlining the sale of its Niclosamide program designed for treating inflammatory bowel diseases (IBD), including conditions like ulcerative colitis.
The buyer is an undisclosed biopharmaceutical company, and this potential transaction allows First Wave BioPharma to streamline its focus on the advancement of three late-stage clinical programs.
These programs include Capeserod, a selective 5-HT4 receptor partial agonist acquired from Sanofi; Adrulipase, a recombinant lipase enzyme targeting exocrine pancreatic insufficiency (EPI); and, following the completion of the recently announced potential business combination with ImmunogenX, Latiglutenase, a Phase 3-ready oral biotherapeutic aimed at treating celiac disease. This strategic move aligns with the company’s commitment to optimizing its developmental resources for key clinical initiatives.
