Shares of Helius Medical Tech surged after the company said it has launched an offering set to raise over $500 million in cash funding to kickstart its cryptocurrency-treasury strategy.
The stock more than doubled, to $20.00, midday Monday. Shares are down 96% this year.
The company said Monday the offering consists of proceeds from a private investment in a public equity transaction for the sale of its common stock at a purchase price of about $6.88.
It also includes an additional $750 million in stapled warrants to purchase shares of common stock, which would be exercisable for three years from the date of issuance, the company said.
The offering is led by Pantera Capital and Summer Capital, with participation from investors including Big Brain Holdings, Avenir, SinoHope, FalconX and others.
It is expected to close on Sept. 18.
The Newtown, Pa., company intends to use the proceeds from the offering to implement a digital asset treasury strategy and acquire SOL, the native cryptocurrency of the Solana blockchain.
