NEW YORK -- Canadian drugmaker Aeterna Zentaris Inc. said Friday it is selling 6.6 million units of stock and warrants to raise money for product development.
Shares of Aeterna Zentaris lost 73 cents, or 23.4 percent, to $2.39 in midday trading. Earlier this month the company completed a six-for-one reverse stock split to boost its share price and regain compliance with the Nasdaq Global Market's minimum-share price rules.
The company said it expects to make $15.2 million from the sale after expenses and commissions. Aeterna Zentaris said the units it is selling will be made up of one share and a warrant to buy 0.45 of a share with an exercise price of $3.45. The units will cost $2.50 each.
Aeterna Zentaris said it expects the offering to close Wednesday. It plans to use the proceeds to fund development of its multiple myeloma drug perifosine and for development of its experimental cancer treatment AEZS-108 and its endocrine disorder drug AEZS-130, and for general corporate purposes.