NEW YORK (TheStreet) -- Shares of Conatus Pharmaceuticals (CNAT) - Get Conatus Pharmaceuticals Inc. Report fell 11.09% to $6.05 in afternoon trading Thursday after the company priced an underwritten public offering of its common stock.
The company priced 3.5 million shares at $5.75 a share for gross proceeds of approximately $20.1 million. The offering contains a 30-day option for underwriters to purchase up to an additional 525,000 shares.
Conatus expects the offering to close on or about April 8.
The company said in a statement it plans to use the proceeds to "fund clinical development of emricasan, including preparation for registration trials, and for working capital and other general corporate purposes."
Conatus is a biotechnology company focused on the development and commercialization of new medicines to treat liver disease.
More than 2.9 million shares had changed hands as of 2:04 p.m., compared to the daily average volume of 971,645.
CNAT data by YCharts