Genvec Hammered on Offering

The company sells 7.25 million shares at a price below Tuesday night's close.
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Shares of

Genvec

(GNVC)

tanked Wednesday after the company sold 7.25 million new shares to institutional investors at a price that was well below Tuesday night's close.

Gaithersburg, Md.-based Genvec priced the deal at $2 through SG Cowen. Its stock, which closed at $2.45 Tuesday, was recently down 38 cents, or 15.5%, to $2.07 in heavy volume.

The deal is expected to close on Sept. 26.

After fees and other costs associated with the transaction, Genvec expects to see net proceeds of $13.4 million to support clinical trials, expansion of manufacturing capabilities and "general corporate purposes."

GenVec is a clinical-stage biopharmaceutical company and has no products on the market. It is focusing its pipeline on cancer, heart disease and vision loss.