NEW YORK (AP) -- Canadian drugmaker Aeterna Zentaris (NASDAQ:AEZS) said Friday it is selling 6.6 million units of stock and warrants to raise money for product development.
Earlier this month, the company completed a six-for-one reverse stock split to boost its share price and regain compliance with the Nasdaq Global Market's minimum-share price rules.
The company said it expects to make $15.2 million from the sale after expenses and commissions. Aeterna Zentaris said the units it is selling will be made up of one share and a warrant to buy 0.45 of a share with an exercise price of $3.45. The units will cost $2.50 each.
Aeterna Zentaris said it expects the offering to close Wednesday. It plans to use the proceeds to fund development of its multiple myeloma drug perifosine and for development of its experimental cancer treatment AEZS-108 and its endocrine disorder drug AEZS-130, and for general corporate purposes.
The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Tackling Cancer: Your Best Investing Ideas
Following three months of examining the 12 most-diagnosed cancers, these stocks look like your best investment choices.
Tackling Cancer: Endometrial Cancer's Biggest Current and Upcoming Players
Cancer research is big business, and it pays to know where research dollars are headed.
Aeterna Zentaris Names New CEO
David Dodd is tapped to lead the oncology and endocrinology drug development firm.