Decoy Therapeutics Inc. (NASDAQ:DCOY) shares are trading higher. The company announced a $21 million private placement financing with a healthcare investor at $5.91 per share.

The Financing

The private placement consists of four components. The upfront portion provides approximately $3.5 million in gross proceeds from the sale of common stock at $5.91 per share. The remaining potential proceeds are milestone-based: a Series A warrant could provide an additional $3.5 million upon filing a Clinical Trial Application in the European Economic Area; a Series B warrant could provide $7.0 million upon receiving approval from the UK’s Medicines and Healthcare products Regulatory Agency to conduct a Phase 2a human challenge trial; and a Series C warrant could provide an additional $7.0 million upon announcing positive data from that Phase 2a trial. All warrants carry an exercise price equal to the deal price of $5.91 per share.

The closing of the offering is expected to occur on or about June 29, subject to customary closing conditions. Curvature Securities LLC is acting as sole placement agent. The company intends to use the net proceeds to advance its lead asset into clinical trials.

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Decoy Shares Soar

DCOY Price Action: At the time of publication, Decoy shares are trading 94.06% higher at $10.71, according to data from Benzinga Pro.

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