Skye Bioscience Inc (OTCMKTS: SKYE) recently announced the closure of its already announced registered direct offering. The announcement is made to purchase and sell more than 77 million shares of the group’s common stock. Additionally, warrants will be purchased for the same amount of shares of common stock. In terms of cost, it has come to light that $0.09 per share will be the effective purchase price.
Furthermore, it is learned that the warrants hold an exercise price equal to $0.09 per share. The warrants can be exercised immediately as and when they are issued. However, they will expire five years from the issuance date. H.C. Wainwright & Co. is the placement agent for this exercise.
$7.0 million is the estimated gross proceeds from the registered direct offering
Before making deductions, it is estimated that the gross proceeds from the registered direct offering are an estimated $7.0 million. When quizzed how the group plans to use the funds, it was learned that Skye Bioscience Inc would use the money generated from the registered direct offering for overall corporate purposes. It is speculated that the corporate house may use the funds to fuel its working capital, capital expenses, other expenses incurred by the company, repay current indebtedness, and acquire complementary products.
With funds in hand, the company is confident of working to enhance the clinical development of its drug candidates
The CEO of Skye Bioscience Inc, Punit Dhillon, shared that with surplus funds in hand, the group is in a solid position to forge ahead in the clinical development of its drug candidate to help patients with glaucoma. Dhillon added that the group intends to initiate R&D activities in broad pharmaceutical cannabinoids to create value for the shareholder.
Skye Bioscience Inc is involved in discovering the pharmaceutical potential of cannabinoids. The group achieves this goal by developing various therapies to treat diseases and disorders that would have been otherwise left untreated. For example, the corporate house is working on introducing a treatment for glaucoma, an eye condition that can result in blindness. Unfortunately, despite the advancement in science and technology, there is no cure for glaucoma.