Shareholders’ Equity |
3 Months Ended |
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Mar. 31, 2024 | |
| Equity [Abstract] | |
| Shareholders’ Equity |
7. Shareholders’ Equity
Common Stock
Reverse Stock Split
On December 22, 2022, the Board of Directors approved an amendment to our Amended and Restated Articles of Incorporation to effect a reverse stock split of our common stock by a ratio of one for sixty. The Company’s common stock began trading on a split-adjusted basis on January 23, 2023. All references to common stock for the comparative three month period ended March 31, 2023, have been adjusted to reflect the effect of the reverse split.
Other Share Issuances
Pursuant to the Company’s effective registration statement on Form S-3 (File No. 333-269225) and a related prospectus and prospectus supplement, in each case filed with the Securities and Exchange Commission. On March 1, 2024, through an underwriting agreement with ThinkEquity, LLC as representative (the “Representative”) of the underwriters (collectively, the “Underwriters”), the Company sold shares of our common stock at a price of $ per share to the public. According to the terms of the underwriting agreement, the Underwriters agreed to purchase the common shares at a price of $ per share. The Company also granted the Underwriters an option exercisable for 45 days from the date of the underwriting agreement to purchase up to an additional shares of common stock solely for the purpose of covering over-allotments (the “Over-allotment Options”). No Over-allotment Options were exercised. The Company also agreed to issue warrants to the designees of the Representative exercisable one hundred eighty (180) days after February 27, 2024 and expiring on February 27, 2029, to purchase up to 5% of the shares sold through the underwriting agreement at an exercise price of $1.875 per share. The gross proceeds from the sale of the shares were $2.1 million before underwriting discounts and commissions and other expenses payable by the Company were deducted.
The Underwriting Agreement contained customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriters, including for liabilities under the Securities Act of 1933, as amended, other obligations of the parties and termination provisions.
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