Creative Medical Technology Holdings Announces Agreements for Exercise of Warrants for $4.2 Million Gross Proceeds
Rhea-AI Summary
Creative Medical Technology Holdings (NASDAQ: CELZ) entered agreements for immediate exercise of warrants to purchase 1,116,136 shares at an exercise price of $3.75 per share, generating approximately $4.2 million gross proceeds before advisory fees. The shares issuable upon exercise are registered on Form S-3.
In consideration, the company will issue new unregistered warrants exercisable for up to 2,790,340 shares at $3.75, subject to a post-issuance five-day VWAP reduction; new warrants will be exercisable for five years following shareholder approval. The company also agreed to reduce exercise prices on certain May 2022 warrants to $4.73. Transaction expected to close on or about October 29, 2025. Net proceeds intended for working capital and general corporate purposes.
Positive
- $4.2M gross proceeds from immediate warrant exercises
- 1,116,136 shares registered on Form S-3 for issuance
- New warrants cover 2,790,340 shares, creating future funding optionality
Negative
- Immediate exercises and new warrants create shareholder dilution
- May 2022 warrants' exercise price reduced to $4.73, increasing dilution risk
- New warrants subject to VWAP reduction, potentially lowering future exercise price
News Market Reaction 35 Alerts
On the day this news was published, CELZ declined 32.74%, reflecting a significant negative market reaction. Argus tracked a peak move of +3.8% during that session. Argus tracked a trough of -38.3% from its starting point during tracking. Our momentum scanner triggered 35 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $7M from the company's valuation, bringing the market cap to $14M at that time. Trading volume was exceptionally heavy at 6.7x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
PHOENIX, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Creative Medical Technology Holdings, Inc., (Nasdaq: CELZ) (the “Company”), a clinical-stage biotechnology company pioneering regenerative immunotherapy, today announced that it has entered into agreements with certain holders of its existing warrants for the immediate exercise of outstanding warrants to purchase up to an aggregate of 1,116,136 shares of common stock of the Company originally issued in March 2025, at their current exercise price of
Roth Capital Partners is acting as the Company’s financial advisor for this transaction.
In consideration for the immediate exercise of the existing warrants for cash, the Company will issue new unregistered warrants to purchase shares of common stock. The new warrants will be exercisable for an aggregate of up to 2,790,340 shares of common stock, at an exercise price of
The transaction is expected to close on or about October 29, 2025, subject to satisfaction of customary closing conditions. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.
The new warrants described above were offered in a private placement pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended (the “1933 Act”) and, along with the shares of common stock issuable upon their exercise, have not been registered under the 1933 Act, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (“SEC”) or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC covering the resale of the shares of common stock issuable upon exercise of the new warrants.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Creative Medical Technology Holdings, Inc.
Creative Medical Technology Holdings, Inc. is a clinical-stage biotechnology company pioneering regenerative medicine solutions across multiple indications. The Company leverages cutting-edge cell therapy technologies to develop transformative treatments aimed at improving patient outcomes.
Forward-Looking Statements
This news release may contain forward-looking statements, including but not limited to comments regarding the closing of the offering and the use of proceeds therefrom, the timing and content of upcoming clinical trials and laboratory results, marketing efforts, funding, etc. Forward-looking statements address future events and conditions, which may involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. See the periodic and other reports filed by Creative Medical Technology Holdings, Inc. with the Securities and Exchange Commission and available on the Commission's website at www.sec.gov.
Contact:
Creative Medical Technology Holdings, Inc.
IR@CreativeMedicalTechnology.com
Investor Relations:
Devin Sullivan, Managing Director
The Equity Group Inc.
dsullivan@equityny.com
FAQ
How many shares will be issued upon exercise of CELZ warrants on October 29, 2025?
What gross proceeds will Creative Medical (CELZ) receive from the warrant exercises?
What are the terms of the new unregistered warrants issued by CELZ?
How will CELZ use the net proceeds from the warrant exercises?
Did CELZ change any prior warrant exercise prices in this transaction?
When is the CELZ warrant transaction expected to close?
