Moleculin Biotech (MBRX) said Thursday that certain holders of its existing warrants have agreed to exercise their holdings to purchase about 5.8 million shares of the company at a reduced exercise price of $1 per share.

The company said gross proceeds from the exercise of warrants is expected to total $5.8 million.

In consideration for the exercise of warrants for cash, Moleculin said it will issue new unregistered warrants to buy nearly 11.7 million shares, which will be immediately exercisable at $0.75 per share.

The transaction is expected to close by Friday and net proceeds would be used for working capital and general corporate purposes, the company said.

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