Panbela Therapeutics Inc. (NASDAQ:PBLA) dropped 26% after announcing that an underwriter was expanding the previously announced public offer size and buy-in commitment basis around 3.333 million of its common shares at $3 per share minus underwriting commissions and discounts. The company expects the public offering to close around July 2, 2021, after meeting customary closing conditions.
The company granted the underwriter a 30-day share purchase option for an additional 500,000 common shares at the offering price minus underwriting commissions and discounts. As a result, gross proceeds from the public offering will be around $10 million before accounting for offering expenses payable by the company and underwriting commissions and discounts. These proceeds are on the presumption that the underwriter won’t exercise the option to buy more shares.
Pamela plans to use net proceeds to fund the ongoing clinical development of its flagship product SBP-101, working capital, and for general corporate uses. In the coming months, PBLA is a stock to watch.
Market Reaction:
On Wednesday, PBLA stock plunged 26% to $2.83 with more than 2.65 million shares, compared to its average volume of 85k shares. The stock has moved within a range of $2.7000 – 2.9900 after opening the trade at $2.97. Over the past 52-week, the stock has been trading within a range of $2.3700 – 10.0000.
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