Shares of Windtree Therapeutics (NASDAQ: WINT) rose by 4.9% after the biotechnology company announced it had secured a common stock purchase agreement of up to $500 million to establish a credit line to support its strategy of investing in the BNB cryptocurrency.
The company also entered into an additional agreement to purchase $20 million in shares with Build & Build Corp. According to the announcement, 99% of the proceeds from both agreements will be allocated to acquiring the BNB cryptocurrency. However, the credit line cannot be utilized until Windtree obtains shareholder approval to increase the number of authorized common shares.
Gideon Latchkin, CEO of Windtree, stated: "We are excited to integrate these new facilities to enable future acquisitions of BNB as part of our strategy. Pending shareholder approval, securing additional funds to purchase more BNB cryptocurrency is essential to our strategy."
The company indicated that the establishment of the credit line reflects its strategy to diversify treasury assets and leverage blockchain-based cryptocurrencies while maintaining prudent financial management.
Patrick Horsman, the certified financial analyst and manager at Build & Build Corp, commented on the agreement saying: "Windtree's strategy to integrate BNB into its treasury reflects a proactive approach to creating value. The credit line provides the necessary flexibility and scale to execute this digital asset treasury vision."
Windtree Therapeutics describes itself as a biotechnology company working to diversify its portfolio through strategic initiatives.