AGTC - Applied Genetic Technologies stock slumps on pricing $10M securities offering to fund clinical trials

• Applied Genetic Technologies ( NASDAQ: AGTC ) stock slumps 45% premarket after the firm prices an underwritten public offering of 16.67M common stock units and accompanying warrants to purchase up to 16.67M shares of common stock at a combined public offering price of $0.60/share of common stock and accompanying warrant.
• The warrants have an exercise price of $0.60/share, are exercisable immediately, and will expire five years following the date of issuance.
• Underwriter are granted 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.
• Offering is expected to close on or about July 15, 2022.
• 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 .

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