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Valion Bio, Inc. has a deal with 3i, LP to sell up to $8.4 million in special stock and warrants.

New sharesRead the original at SEC EDGAR
Bad for VBIO

Valion Bio received $700,000, but its preferred shares can become common shares and its warrants can add 21,539 more. It also agreed to work toward registering the shares for resale, so the possible reduction in current owners’ portions outweighs the cash benefit.

VBIO · Valion Bio, Inc.

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The cash gives Valion Bio more funds, but preferred shares can turn into common shares. The warrants provide another way to create shares. The company also agreed to work toward registering the shares for resale. That could make them easier to sell. The cash helps, but the possible reduction in existing owners’ portions weighs more.

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