(By Balaseshan) Coronado Biosciences Inc. (NASDAQ:CNDO) said it has priced its underwritten public offering of 5 million shares at $5.00 apiece, a 6.7% discount to the stock's previous closing price. Following the news, shares fell 4.85% in premarket.
Coronado expects to receive about $23.0 million in net proceeds from the offering, after deducting underwriting discount and estimated offering expenses.
The company also has granted the underwriters a 30-day option to purchase up to an aggregate of 750,000 additional shares of common stock to cover over-allotments, if any.
The offering is expected to close on June 27, 2012, subject to customary closing conditions.
Oppenheimer & Co. Inc. and Roth Capital Partners are acting as joint book-running managers for the offering. National Securities Corp. is acting as an underwriter for the offering.
Coronado expects to use the net proceeds from the sale of the shares primarily to fund clinical trials for the company's product candidates, to fund its research and development activities, for working capital and general corporate purposes.
Coronado focuses on the development of novel immunotherapy biologic agents for the treatment of autoimmune diseases and cancer.
The company's two principal pharmaceutical product candidates in clinical development are: TSO (Trichuris suis ova or CNDO-201), a biologic for the treatment of autoimmune diseases, such as Crohn's disease, ulcerative colitis and multiple sclerosis; and CNDO-109, a biologic that activates natural killer (NK) cells, for the treatment of acute myeloid leukemia (AML) and solid tumors.
CNDO closed Thursday's regular session down 4.29% at $5.36. The stock has been trading between $4.95 and $11 for the past 52 weeks.