Biotech company asks shareholders to dilute stock by 951% to hoard illiquid crypto token instead of funding its own drug
Enlivex is seeking shareholder approval for up to $800 million of financing tied to the RAIN token, a structure that could expand its share count by as much as 951%. The deal is mainly a crypto-treasury transaction: RAIN delivered at closing would go to Enlivex’s treasury wallets, and most cash or stablecoin proceeds would be used to buy RAIN, cover treasury uses, transaction costs, and debt. Only up to 5% of remaining USD proceeds could fund Allocetra. Approval is needed for a $400 million initial placement and a separate $400 million company-controlled option. Depending on whether payment is in RAIN or USD/USDT/USDC, the first tranche would equal about 66.7 million or 80 million share equivalents, or roughly 396% to 475% of Enlivex’s post-split outstanding shares. Full use of the second tranche would raise total new share equivalents to about 133.3 million or 160 million. The buyer is not clearly identified in the filings. After closing, Enlivex may also force up to another $400 million purchase over 36 months.
