Genprex Inc. shares dropped 20%, to $3.93, after the company said a stock offering had priced.
The clinical stage gene therapy company said it entered into securities purchase agreements with institutional investors for the purchase and sale of 5 million shares of common stock at an offering price of $3.50 per share.
The company said it expects proceeds of $17.5 million.
Genprex said it intends to use the proceeds to advance its lead clinical programs in on-small cell lung cancer and for working capital and general corporate purposes.
The closing is expected to take place on or about Feb. 21.