Estrella Immunopharma Inc (NASDAQ:ESLA) stock tumbled 8.6% on Monday after the clinical-stage biopharmaceutical company announced it had entered into definitive agreements for an $8 million registered direct offering and concurrent private placement.
The offering, priced at-the-market under Nasdaq rules, consists of 5,063,290 units priced at $1.58 each, with each unit containing one share of common stock or one pre-funded warrant, plus one and a half investor warrants. The investor warrants are exercisable at $1.39 per share.
The transaction involves a single healthcare-focused institutional investor and is expected to close around January 6, 2026, subject to customary closing conditions. Aegis Capital Corp is acting as the exclusive placement agent for the offerings.
Estrella Immunopharma, which develops CD19 and CD22-targeted ARTEMIS T-cell therapies to treat cancers and autoimmune diseases, intends to use the proceeds for general corporate purposes and working capital.
The company’s stock decline reflects typical market reaction to equity offerings that can potentially dilute existing shareholders. The pre-funded warrants included in the offering are immediately exercisable at an exercise price of $0.00001, while the investor warrants have an exercise price of $1.39 per share.