On Thursday, shares of animal health company Jaguar Animal Health Inc. (JAGX Quick QuoteJAGX - Free Report) are skyrocketing, up 115% in morning trading after the company announced it has entered into a $15 million stock purchase and registration rights agreement with Aspire Capital Fund.

Immediately after the agreement was executed, Aspire, a Chicago-based institutional investor, purchased 222,222 shares of JAGX common stock for $500,000. Jaguar must wait until a registration statement has been filed and declared effective by the SEC in order to obtain the right to sell up to the remaining $14.5 million of its common stock to Aspire.

In a statement announcing the deal, Jaguar CEO Lisa Conte said that "This agreement provides Jaguar with added balance sheet strength and flexibility to support our ongoing clinical activities and the expected commercialization of our drug product candidates, and we welcome Aspire as a stockholder.”

“Additionally, we expect that this Agreement may serve as an important asset as Jaguar continues discussions regarding potential business development and M&A activity,” Conte continued.

Currently, Jaguar sits at a #3 (Hold) on the Zacks Rank.

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