August 8, 2016 8:51am
One key element, FATE did NOT use a placement agent in connection with the transaction. The purchase and sale is expected to close on or before August 10, 2016,
FATE has entered into a securities purchase agreement for a private placement with a select group of institutional investors, including funds managed by Franklin Advisers, Inc., under which the investors have agreed to purchase 5,250,000 shares of FATE’s common stock at a price of $1.96 per share, for gross proceeds of approximately $10.3 M.
FATE did not use a placement agent in connection with the transaction.
The purchase and sale is expected to close on or before 8/10/16, subject to customary closing conditions.
The Bottom Line: FATE has broken the “mold” of financing announcements. Usually upon the release of a pending offering or private placement, a stock will depreciate based on the discount and unfolding dilution. FATE had closed at $2.11 having announced a private placement at a price of $1.96 with a select group of institutional investors, including funds managed by Franklin Advisers, Inc.
One key element, FATE did NOT use a placement agent in connection with the transaction. The purchase and sale is expected to close on or before August 10, 2016,
The share pricing jumped +$0.47 or +22.55% to $2.60 by 3 pm on Monday