KiromicBioPharma Inc. (NASDAQ:KRBP) plunged 27.5% after the company announced the pricing of an underwritten public offering of 8 million common shares at $5 per share. The company expects to raise $40 million in gross proceeds from the public offering before accounting for underwriting commissions and discounts and projected offering expenses that Kiromic will pay. Equally, the company gave underwriters a 45-day purchase option for an additional 1.2 million shares of its common stock, mainly as insurance for over-allotment.
The company expects to close the public offering on or around July 2, 2021, and the closing will be subject to customary conditions. Kiromic will use the net proceeds of the public offering mainly to fund clinical studies of the ALEXIS-PRO-1 and ALEXIS-ISO-1 product candidates, IP reinforcement and protection, expansion of GMP facility, IND enabling studies, and IND Applications and working capital. The remaining capital will be used for general corporate operations.
The company is advancing ALEXIS-PRO-1 and ALEXIS-ISO-1, which are in the IND process, for solid tumors. So in the coming months, KRBP is worth keeping an eye on.
Market Reaction:
On Wednesday, KRBP stock plunged 27.56% to $4.81 with more than 3.76 million shares, compared to its average volume of 59k shares. The stock has moved within a range of $4.6700 – 5.0000 after opening the trade at $4.88. Over the past 52-week, the stock has been trading within a range of $4.6700 – 18.5000.
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