Artelo Biosciences Inc (NASDAQ:ARTL) saw its shares plunge 20.5% in premarket activity on Wednesday after the company disclosed an at-the-market common stock offering valued at up to $6.53 million.
The biotechnology firm filed a prospectus supplement detailing the offering, which designates H.C. Wainwright & Co., LLC as the exclusive sales agent. The Sales Agreement, dated May 26, 2026, establishes an at-the-market program under which Artelo may sell shares into market trading. The agreement specifies that the sales agent will receive a commission equal to 3.0% of gross proceeds on any sales executed under the program.
The prospectus supplement states that sales will be effected through transactions on existing securities trading markets at prevailing market prices. It also clarifies that the sales agent is not obligated to sell any particular number or dollar amount of securities under the program.
For reference on recent pricing, Artelo’s common stock closed at $1.19 per share on Nasdaq on May 22, 2026.
The filing includes a calculation of the company’s aggregate market value held by non-affiliates as of May 26, 2026. Based on 3,484,052 shares held by non-affiliates and a per-share price of $10.54 from March 27, 2026, the aggregate market value of outstanding common stock held by non-affiliates was reported at $36.7 million.
In the prospectus supplement Artelo also noted its recent use of similar provisions: during the 12-month period ending on the date of the supplement, the company sold securities with an aggregate market value of $5.7 million under comparable arrangements.
The supplement further states that H.C. Wainwright will be deemed an underwriter for the purposes of the offering and, as such, will be entitled to indemnification and contribution against certain civil liabilities.
The filing lays out the mechanics of the at-the-market program and related legal protections for the sales agent, while confirming recent trading data and prior utilization of similar financing mechanisms.