Shares of biotechnology company Cel-Sci Corp. (NYSE:CVM) are down nearly 18% at the time of writing today after it announced the pricing of an underwritten public offering of 2.5 million common shares at $2 apiece.
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Cel-Sci expects to rake in $5 million in gross proceeds from the move and plans to use the funds raised for general corporate purposes and the development of Multikine. The offer is anticipated to close on July 20.
Multikine, Cel-Sci’s lead candidate, has been granted orphan drug designation by the U.S. Food and Drug Administration and has completed a phase 3 trial in head and neck cancer.
The stock offering comes after last week, Cel-Sci concluded a meeting with the FDA for bringing Multikine on the market. Cel-Sci is also aiming for commercialization of the therapy in major markets worldwide with regulatory meetings in Europe and the U.K. planned in the fall. Additionally, the company noted that commercialization in Canada could begin as early as next year.
With today’s price erosion, Cel-Sci shares have now tanked nearly 27% over the past year. Meanwhile, short interest in the stock still remains elevated at about 11.5% at present.
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