Eleven Biotherapeutics Inc. (NASDAQ:EBIO)
Eleven Biotherapeutics Inc. (NASDAQ:EBIO) fell 22.11% after announcing the pricing of an underwritten public offering of 5.5 million shares of common stock. The late-stage clinical oncology company is also offering pre-funded warrants for the purchase of an aggregate 4.5 million shares of common stock as well as common warrants for the purchase of up to 10 million shares.
The company is offering each share of common stock or pre-funded warrant at a combined effective price of $0.80 a share. Eleven Biotherapeutics Inc. (NASDAQ:EBIO) has also granted underwriters a 30-day option to purchase an addition 1.5 million shares of common stock at a price of $0.79 a share
H.C Wainwright & Co., LLC is acting as the book-running manager for the offering. The offering should close on or about November 3, 2017, subject to customary closing conditions
Eleven Biotherapeutics Inc. (NASDAQ:EBIO) expects gross proceeds of approximately $8 million prior to the deduction of underwriting discounts and commissions among other offering expenses. The company plans to use the net proceeds to finance clinical development of its lead product candidate Vicinium.
The late-stage clinical oncology company has already completed manufacturing of all the Vicinium necessary for its Phase 3 registration trial. The trial seeks to evaluate the candidate drug’s ability to treat non-muscle invasive bladder cancer
Eleven Biotherapeutics Inc. (NASDAQ:EBIO) continues to trade lower for the better part of the year. Investors’ confidence in the stock has taken a hit amidst stock dilution concerns and the fact that the company could be sinking further into debt. The stock has shed more than 60% in market value since the start of the year.
Separately, Eleven Biotherapeutics Inc. (NASDAQ:EBIO) has confirmed the appointment of Richard F. Fitzgerald as the Interim Chief Financial Officer. He replaces John McCabe who stepped down from the post. Fitzgerald joins the company with over two decades of financial and strategic leadership.
“We are pleased to welcome Richard to the management team at eleven. He brings significant experience in capital raising and strategic leadership to the company, as we look forward to top-line three-month data from our Phase 3 trial of our lead drug candidate Vicinium in mid-2018,” said Stephen Hurly, Chief Executive Officer of Eleven Biotherapeutics Inc. (NASDAQ:EBIO).
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.