MEI Pharma Stock Surges on $100 Million Private Placement, Litecoin Treasury Strategy

By Dean Seal

Shares of MEI Pharma hit a 52-week high after the company said a $100 million private placement will be used to adopt the cryptocurrency Litecoin as its treasury reserved asset.

The stock was up 52% at $6.84 in early trading on Friday. Shares have more than doubled in the past 52 weeks.

The pharmaceutical company said it has entered into securities purchase agreements for a private investment in public equity for the sale of 29.2 million shares at a price of $3.42 each.

In connection with the agreement, MEI has named Litecoin founder Charlie Lee, a lead investor in the stock sale, to its board. It has also made GSR, a digital asset market maker and also lead investor, its digital asset and treasury management advisor.

GSR will oversee the implementation of MEI's Litecoin Treasury Strategy, in which it will stockpile the digital asset as its primary treasury reserve asset.

Write to Dean at dean.seal@wsj.com