Endocyte (ECYT) Slips After Pricing Share Offering

NEW YORK (TheStreet) -- Endocyte (ECYT) is sliding on Friday after pricing its previously-announced share offering.

By midafternoon, shares had taken off 7.7% to $21.30. Trading volume of 5.7 million was nearly four times its three-month daily average.

The biopharmaceutical company said it intends to offer 4.5 million shares of common stock at $21 a share, a 9% discount to Thursday's close of $23.07. Endocyte said it had also granted the underwriters a 30-day option to purchase up to an additional 675,000 shares.

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Before deducting underwriting discounts and commissions, the gross proceeds from the offering will total $94.5 million. Endocyte anticipates redistributing net proceeds to working capital and general corporate purposes, including research and development and capital expenses.

The offering is expected to close around April 2, pursuant to customary closing conditions.

Credit Suisse will act as joint book-running managers, Cowen and Company will serve as lead manager, and RBC Capital Markets, Baird, Wedbush and Roth Capital Partners will act as co-managers.

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