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.