Shares of Cleveland BioLabs (CBLI) are up 106% since yesterday's close after the company announced a private placement agreement with a strategic investor for $25 million. More specifically the company entered into a securities agreement to sell 6,459,948 unregistered common shares with a price of $3.87 per share. These shares will be sold to a venture capitalist by the name of David Davidovich. The investor was identified as a "New York City venture capitalist," but it is worth noting that CBLI has Russian venture capital investors, including at least one board seat, and a joint venture, Incuron, with a Russian fund; and the best known David Davidovich, #782 on the Forbes Billionaire List, is Moscow-based.
The price is at a 35% premium to the closing price of $2.86 per share on June 23, 2015. In addition to this private placement agreement for $25 million Cleveland Biolabs is also increasing the company's number of board members from 6 to 13. The new venture capitalist investor will be choosing the new 7 members of the board for the company. Cleveland BioLabs is primarily focused in the development area of Oncology by leveraging its Toll-Like Immune Receptor Activators.
The investment is more than double the whole current market cap of the company, which at today's close stood at $11.33 million.
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