Shares of Greenwich LifeSciences (GLSI -0.09%) were down by 13.5% as of 2:41 p.m. EST on Friday following its announcement of the pricing of a public offering of common stock. Naturally, investors aren't excited with the prospect of the clinical-stage biopharmaceutical company diluting its existing shareholders.
Greenwich LifeSciences is offering 660,000 new shares of its common stock for $40 per share. The company is also granting underwriters a 45-day option to purchase an additional 99,000 shares at the public offering price. It expects to collect gross proceeds of $26.4 million, or if the underwriters exercise their full option, roughly $30.4 million. Notably, shares of Greenwich LifeSciences closed Thursday's trading session at $44.52 per share. As of this writing, the company's stock was trading at $38.50 per share. This public stock offering should close on Dec. 22.
Greenwich LifeSciences currently does not have any products on the market, but one of its leading pipeline candidates is a potential cancer treatment called GP2. Management recently released encouraging results from a phase 2 clinical trial for GP2. The healthcare company will use the proceeds from its announced public offering of common stock to advance the development of GP2.