Discovery Labs to Float Stock Issue
Discovery Laboratories is turning its focus to raising capital. The company will float 9.5 million shares of its common stock in an underwritten public offering. The price is $1.50 per share. Additionally, its underwriter has been granted a 30-day purchase option for up to an additional 1.425 million shares to cover overallotments, if any.
The net proceeds of the issue are estimated at $13.2 million. Discovery Labs said it plans to use those funds mainly for working capital.
Stifel is the sole book-running manager of the issue. Discovery Labs expects the offering to close on or about May 15.
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