Shares of BriaCell Therapeutics Corp (NASDAQ:BCTX) dropped 22% after the clinical-stage biotech firm unveiled a public offering likely to dilute existing shareholders.
The company announced it will offer up to 6,825,938 common units on a best efforts basis, with each unit priced at $2.93. Each unit consists of one common share and one warrant allowing the holder to buy another share at $5.25. The warrants will be valid until April 28, 2030.
To accommodate investors who would otherwise exceed a 4.99% ownership threshold (or optionally 9.99%), BriaCell is also offering pre-funded units. These units include a pre-funded warrant exercisable at $0.001 per share and a standard warrant, with the total price set at $0.001 less than the common unit price.
The sharp drop in share price reflects market concerns over dilution. While the capital raise could help fund BriaCell’s ongoing immunotherapy programs, the potential influx of new shares from the offering and future warrant exercises may significantly expand the company’s share count.
Both the common and pre-funded units will be immediately separable upon issuance and are expected to trade independently.
BriaCell Therapeutics stock price
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