KDNY - Chinook Therapeutics stock slides on $105M equity offering

Chinook Therapeutics (NASDAQ:KDNY) shares have slid 7% pre-market after the biopharmaceutical company priced its $105M share and warrant offering. The offering consists of 6,428,572 shares of common stock priced at $14/share. Underwriters will have a 30-day option to purchase up to an additional 1,125,000 shares of common stock. In addition, and in lieu of common stock, Chinook is offering to certain investors pre-funded warrants to purchase up to an aggregate of 1,071,428 shares of common stock at $13.9999/pre-funded warrant Gross proceeds are expected to be $105M. Net proceeds will support the firm's phase 3 ALIGN and phase 2 AFFINITY trials of atrasentan, fund a phase 3 clinical trial of BION-1301, continue development of CHK-336 and prepare for the potential commercial launch of atrasentan. The remainder of the net proceeds, if any, will be used for general corporate purposes. Offering is expected to close around May 27, 2022.

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Chinook Therapeutics stock slides on $105M equity offering