MEI Pharma Inc. (NASDAQ:MEIP) completed a private placement of $100 million to fund a treasury strategy focused on Litecoin, becoming the first publicly traded company on a national exchange to hold LTC as its primary reserve asset.
The pharmaceutical company sold 29,239,767 shares of common stock at a price of $3.42 per share. Charlie Lee, the creator of Litecoin, led the investment and joined the board of directors of MEI, while Tahir Datoo left the board. GSR, a digital asset market maker, was appointed as the company's treasury management consultant.
Other investors in the placement included the Litecoin Foundation and venture firms specializing in cryptocurrencies: MOZAYYX, ParaFi, Hivemind, Primitive, RLH Capital, and Delta Blockchain.
MEI plans to use all net proceeds to acquire Litecoin tokens, which will serve as the primary reserve asset of the company's treasury. The company stated that this represents a shift from pharmaceutical activities to a treasury strategy focused on cryptocurrency.
"Litecoin was designed to be fast, secure, and decentralized – and it is very gratifying to see these principles now being embraced by a public company like MEI," said Lee.
Josh Rizman from GSR said that the firm aims to help MEI "unlock the long-term potential of digital assets while managing risks and maintaining flexibility."
Titan Partners Group acted as the sole placement agent for this transaction. The securities were sold in a private placement pursuant to Section 4(a)(2) of the Securities Act and applicable exemptions.
Previously, MEI Pharma operated as a pharmaceutical company with drug candidates such as voruciclib, an oral inhibitor of cyclin-dependent kinase 9. The company's shares are traded on NASDAQ.
