Why Is SELLAS Life Sciences Stock Falling Today?

• The company announced the exercise of existing warrants held by an institutional investor.
• The investor will receive new registered warrants to purchase up to 22.4 million shares of its common stock at an exercise price of $2.00 for the exercise of existing warrants. 
• The transaction is expected to close on or about October 28, the company said. 
   

Shares of SELLAS Life Sciences Group, Inc. (SLS) slumped 6% on Monday after the company announced the exercise of existing warrants held by an institutional investor for $31 million in gross proceeds.

The warrants were previously issued in March and August 2024, the company said. The investor will receive new registered warrants to purchase up to 22.4 million shares of its common stock at an exercise price of $2.00 for the exercise of existing warrants.

The new warrants will be exercisable immediately and will expire five years from the date of issuance, the company said.

The closing of the translation is expected to occur on or about October 28, it added.

Sellas is a late-stage clinical biopharmaceutical company focused on developing novel cancer therapeutics. Its lead product candidate, called GPS, is licensed from Memorial Sloan Kettering Cancer Center and targets a protein present in an array of tumor types. 

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around SLS stock fell from ‘extremely bullish’ to ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

A Stocktwits user recommended holding the stock, opining that it will now go higher.

Another dismissed concerns of dilution, terming the warrant exercise a “not that big deal.”

In September, the company announced that an institutional investor had exercised the warrants it held to purchase up to 19.69 million shares of the company’s common stock for gross cash proceeds of approximately $23.6 million. The warrants were previously issued in January 2025, the company then said.

SLS stock is up by 80% this year and by about 54% over the past 12 months. 

Read also: Dyne Therapeutics Stock Soars After Rival Avidity Biosciences Gets Acquired By Novartis

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