Avalon Globocare stock plummets due to dilutive financing

Investing.com – Avalon GloboCare Corp. (NASDAQ:ALBT) stock dropped 22.7% on Friday after the company announced a dilutive private placement at market prices under NASDAQ rules.

The company has entered into a definitive agreement to issue 63,725,500 common shares (or in lieu thereof, pre-funded warrants), along with Series A-1 and Series A-2 warrants to purchase up to 63,725,500 shares each, at a purchase price of $0.51 per share. These warrants have an exercise price of $0.51 per share and will be exercisable upon shareholder approval.

The total gross proceeds from the offering are expected to be approximately $3.25 million, before deducting placement agent fees and other offering expenses. The offering is expected to close around February 27, 2026, subject to customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The Series A-1 warrants will expire five years after shareholder approval, and the Series A-2 warrants will expire 18 months after shareholder approval. If the warrants are fully exercised for cash, potential additional gross proceeds could be approximately $6.5 million.

Avalon GloboCare plans to use the net proceeds from the offering to repay certain outstanding debt, as well as for working capital and general corporate purposes.

These securities were offered in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933 and Regulation D, and are not registered under the Act or applicable state securities laws. These securities were only offered to qualified investors.

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