Cleveland BioLabs shares plummet after stock offer

BUFFALO, N.Y. -- Shares of Cleveland BioLabs plummeted in morning trading Friday, after the biotech company said it would sell $15 million of its stock in a public offering.

The company said it would offer 7,500 units at a price of $2 per unit. The offering is expected to close on or around Oct. 24. Cleveland BioLabs said underwriters will have 30 days to purchase up to 1,250,000 additional shares and warrants for 562,500 shares to cover overallotments.

Oppenheimer & Co. Inc. is serving as bookrunner for the offering. Cantor Fitzgerald & Co. and Ladenburg Thalmann & Co. Inc. are acting as co-managers.

Cleveland BioLabs Inc. shares fell 58 cents, or 23.4 percent, to $1.90 the first few minutes of trading. The stock had previously changed hands between $1.15 and $4.06 in the past 52 weeks.