NEW YORK (TheStreet) -- Cleveland BioLabs (CBLI) shares are spiking, up 147.7% to $7.01 in morning trading on Thursday after the company confirmed that it entered into a private placement agreement for $25 million in equity financing.
The company entered into a securities purchase agreement with venture capital investor David Davidovich for the sale of approximately 6.5 million shares at a price of $3.87 per share.
The offering is a 35% premium over the stock's closing price on Tuesday.
"We are pleased to partner with a long-term investor who shares our confidence in CBLI's future prospects and recognizes the value of our team and pipeline," said CEO Yakov Kogan. "We believe this investment provides us with sufficient capital to pursue commercialization of entolimod's biodefense indication, assuming a positive outcome to the ongoing review of our pre-Emergency Use Authorization dossier by the U.S. Food and Drug Administration, and advance development of our oncology and vaccine adjuvant programs."
TheStreet Ratings team rates CLEVELAND BIOLABS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLEVELAND BIOLABS INC (CBLI) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself."