CHARLOTTE, N.C. (AP) — Shares of Chelsea Therapeutics tumbled Friday as it attempted to raise funds through a 4.3-million share offering at $4.75 each.
The offering is priced at a discount of 10.4 percent to the stock's Thursday closing price of $5.30. Shares of Chelsea Therapeutics have traded between $3.25 and $8.20 in the last year.
The company says it expects to raise $19.2 million from the offering after discounts, commissions, and expenses are deducted from the proceeds. The underwriters of the offering will have an option to buy up to 651,000 additional shares to cover any over allotments. Chelsea would get another $2.9 million if all those shares are sold. It said the offering is expected to close by Wednesday.
Leerink Swann LLC is the book-running manager for the offering, and Needham & Co and Roth Capital Partners are the co-managers.
Shares of Chelsea Therapeutics International Ltd. fell 26 cents, or 5 percent, to $5.04 in morning trading.