AGTC - Applied Genetic Technologies stock slumps 50% on pricing $10M securities offering to fund clinical trials (update)

• Applied Genetic Technologies ( NASDAQ: AGTC ) stock slumped more than 50% Wednesday after the biotech firm priced a $10M underwritten public offering .
• AGTC fell as much as 54.1% to 38.94 cents per share before partly recovering to trade at 39.26 cents shortly before 3:30 p.m. ET. That's down 53.8% on the day.
• The stock plummeted after the firm's new offering priced at a combined $0.60 per share of common stock and accompanying warrant.
• Applied Genetic Technologies ( AGTC ) is selling 16.67M common-stock units and accompanying warrants to purchase up to 16.67M shares of common stock.
• The warrants have an exercise price of $0.60/share, are exercisable immediately, and will expire five years following the date of issuance.
• Underwriters also received a 30-day option to purchase up to 2.5M additional shares of common stock, and/or warrants to purchase up to an additional 2.5M shares of common stock at the public offering price.
• The offering is expected to close on or about July 15.
• Gross proceeds are expected to be ~$10M.
• The company will use the net proceeds, together with other available funds, to fund its ongoing Skyline and Vista clinical trials in its X-linked retinitis pigmentosa program and its ongoing Phase 1/2 clinical trials in its Achromatopsia program, its preclinical development programs, investments in its manufacturing facility and for working capital and other general corporate purposes.
• Earlier, Applied Genetic Technologies proposes stock offering to fund clinical trials .

For further details see: