Biotech drug developer Novavax Inc. said Friday it plans to offer 6.8 million of its shares in an underwritten public offering, at a price of $3.30 per share.
The price is about 12 percent below the stock's Thursday closing price of $3.77. Shares fell 41 cents, or 11 percent, to $3.36 in morning trading.
The offering, which Novavax expects to close on or about Nov. 25, would dilute the value of Novavax's existing shares. A regulatory filing by the Rockville, Md.-based company listed about 93.5 million shares outstanding as of Nov. 4. That's up from 92.3 million as of Sept. 30, and up from 66.5 million as of Sept. 30, 2008.
Novavax expects to raise about $21 million from the offering, after expenses. Proceeds will be used for preclinical studies and clinical trials of vaccines the company is developing, as well as research and development programs, working capital, capital spending, and other general corporate purposes.
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The offering is being made under a shelf registration statement filed with the Securities and Exchange Commission. Piper Jaffray & Co. and Lazard Capital Markets LLC are acting as joint bookrunning managers.
The underwriters have been granted an option to buy up to an additional 1 million shares at any time on or before Dec. 8 to cover any overallotments.