Fibrobiologics Inc. (NASDAQ:FBLG) shares fell 8.7% on Wednesday after the clinical-stage biotech firm announced a $4 million registered direct offering that was priced at-the-market under Nasdaq regulations.
The deal includes 3,540,000 shares of common stock along with pre-funded warrants for 8,570,203 shares, all sold to an existing investor at $0.3303 per share or per pre-funded warrant. In an unusual twist, the investor will not pay in cash but in sovereign-issued .9999 fine gold coins valued at $4,069.18 per ounce.
Alongside the direct offering, Fibrobiologics will also issue unregistered warrants in a private placement, allowing the purchase of up to 12,110,203 shares at an exercise price of $0.3303. If those warrants are exercised for cash—following required stockholder approval—the company could raise another approximately $4 million.
“We’re grateful for the continued support from one of our major shareholders. Their commitment gives us the flexibility to strengthen our capital structure and stay focused on building the future,” said Pete O’Heeron, Founder and Chief Executive Officer of Fibrobiologics.
The company said proceeds will go toward general corporate purposes, including debt repayment. Closing is expected around November 19, 2025, pending standard conditions.
Fibrobiologics develops disease-modifying treatments based on fibroblasts and fibroblast-derived technologies and holds more than 270 issued and pending patents worldwide.