Shares of Edge Therapeutics Inc. (NASDAQ: EDGE) posted a solid gain in Wednesday’s trading session after the company announced that it would be conducting a registered direct offering of its common stock. Accordingly, Satter Medical Tech Partners and some of its affiliates will be purchasing the 1.8 million shares at a price of $10 per share.

The offering is valued up to $18 million, which compares to the company’s overall market cap of roughly $280 million. Prior to the announcement, the company’s market cap was only $255 million.

Edge is a clinical-stage biotechnology company that discovers, develops and seeks to commercialize novel, hospital-based therapies capable of transforming treatment paradigms in the management of acute, life-threatening critical care conditions. Its initial product candidates target rare, acute, life-threatening conditions.

Management believes that its lead product candidate, EG-1962, can fundamentally improve patient outcomes and transform the management of aneurysmal subarachnoid hemorrhage (aSAH), which is bleeding around the brain due to a ruptured brain aneurysm. A single dose of EG-1962 delivers high concentrations of nimodipine, the current standard of care, directly to the brain with sustained drug exposure over 21 days.

EG-1962 utilizes Edge’s proprietary, programmable, biodegradable polymer-based development platform, or its Precisa development platform, through a novel delivery mechanism that enables targeted and sustained drug exposure while potentially avoiding dose-limiting side effects associated with currently available formulations of nimodipine. EG-1962 has been granted orphan drug designation and Fast Track designation by the U.S. Food and Drug Administration (FDA), for the treatment of patients with subarachnoid hemorrhage. The European Commission has granted orphan drug designation to EG-1962 for treatment of aSAH as well.

The proceeds from the offering are intended to be used to advance pre-commercial activities for EG-1962 (currently in a registration study for the treatment of aneurysmal subarachnoid hemorrhage), to expand its product portfolio and for general corporate purposes.

Shares of Edge were last seen up over 9% at $9.64 on Wednesday, with a consensus analyst price target of $23.33 and a 52-week trading range of $7.30 to $13.50.

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