NEW YORK ( TheStreet) -- EpiCept (EPCT) shares plunged more than 30% Monday after the pharmaceutical company priced its public offering of common shares at a steep discount to the stock's closing price Friday.
EpiCept said it will offer 6.1 million shares of common stock at $1.10 per share, a 30% discount to Friday's closing price of $1.57. In addition, EpiCept will offer five year warrants to purchase up to approximately 4.6 million shares at an exercise price of $1.57 per share, as well as one year warrants to purchase up to roughly 6.1 million shares at $1.57 per share.
EpiCept said it will receive approximately $6.2 million in net proceeds from the offering, which will be used to meet working capital needs and for general corporate purposes. "The proceeds of this offering together with existing cash are expected to be sufficient to fund most of the balance of the company's anticipated cash expenditures for 2010," EpiCept said in a statement.
Shares of EpiCept dropped by 57 cents, or 36.3%, to $1 ahead of Monday's opening bell.Elsewhere, Isle of Capri (ISLE - Get Report) said it is offering 9 million shares of its common stock. Underwriters were given a 30-day option to purchase up to 1.35 million additional shares to cover overallotments, if any. Isle of Capri said a portion of the net proceeds from the offering will be used to temporarily repay borrowings outstanding under the revolving line of credit, of which $80 million was incurred to fund the purchase of the Rainbow Casino in Vicksburg, Miss. Shares of Isle of Capri were down 3.3% to $12 in early trading. Ladish (LDSH) filed late Friday with the Securities and Exchange Commission to offer up to 2.5 million shares of common stock. The jet engine components maker said net proceeds from any offering will be used for funding its pension obligations and for other general corporate purposes. Ladish shares were off by 3.5% to $24.09. In addition, Omega Healthcare Investors (OHI - Get Report) late Friday it has entered into separate equity distribution agreements to sell shares of its common stock totaling up to $140 million. The real estate investment trust said it intends to use the net proceeds of the offering for working capital and general corporate purposes. Shares were lately slipping by 0.1% to $20.03.