Canadian drug developer YM BioSciences Inc. said it is publicly offering $40 million in common stock.
The company is offering 25 million shares at $1.60 apiece, marking a 10.6 percent discount to its closing price of $1.79 on Monday.
Shares fell 14 cents, or 7.8 percent, to $1.65 in afternoon trading Tuesday. The stock has traded between $1.06 and $2.24 over the last 52 weeks.
The company said it expects to use the proceeds of the offering to fund research and development activities and for general corporate purposes. YM BioSciences has about 80.4 million shares of common stock outstanding.
The company granted underwriters a 30-day option to buy up to an additional 3.75 million shares to cover overallotments. The offering is expected to close on Friday.
Roth Capital Partners LLC is the sole book-running manager for the offering.
Date: December 14, 2010
Source: Associated Press