NEW YORK (TheStreet) -- Shares of Synta Pharmaceuticals (SNTA) fell more than 16% to a 52-week low of $1.85 in morning trading Tuesday after the biopharmaceutical company announced the pricing of an underwritten public offering of common stock.
The company priced 22 million shares of common stock at $1.75 a share for gross proceeds of approximately $38.5 million. The offering contains a 30-day option for underwriters to purchase up to an additional 3.3 million shares.
Synta expects the offering to close on or about April 6.
Synta is a biopharmaceutical company focused on the research, development, and commercialization of novel oncology medicines. Its lead oncology drug candidate, ganetespib, is currently being evaluated in multiple clinical trials, including the GALAXY-2 Phase 3 trial in non-small cell lung cancer.
More than 5.6 million shares had changed hands as of 10:03 a.m., compared to the daily average volume of 930,064.