EMERYVILLE, Calif. (AP) — Bionovo Inc., which focuses on developing treatments for women's health and cancer, said Friday that it may raise up to $20 million in gross proceeds from an offering of up to 3.2 million units priced at $6.20 per unit.
Each unit includes 10 common shares and 10 warrants, the company said.
Bionovo plans to use the offering's net proceeds for Phase 3 trials of its postmenopausal drug candidate Menerba. Any remaining funds will be put toward general corporate purposes.
The Emeryville, Calif., company gave placement agent Dawson James Securities a 30-day option to arrange for the sale of up to 484,649 additional units to cover any overallotments.
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Bionovo said each warrant gives holders the chance to buy one share at an exercise price of 85 cents. The warrants, which expire after five years, can be exercised six months after the offering's closing or later.
The offering is likely to close Wednesday.
Shares of Bionovo fell 14 cents, or 20.8 percent, to 55 cents in morning trading. The stock has traded in a range of 17 cents to $1.15 over the past year.