NEW YORK (TheStreet) -- Shares of Novogen (NVGN) fell 16.79% to $7.68 in late morning trading Monday after the Australian and U.S. biotechnology company announced it had conducted a private placement and offered rights to shareholders.
The company announced late Monday that it agreed to issue approximately 51 million fully-paid ordinary shares plus one attaching 6-month option and half of one attaching 5-year option for every ordinary share issued to institutional investors in the U.S. in a private placement.
The company expects aggregate gross proceeds of approximately AU$15.5 million from the placement, which is expects to close on or about April 24.
Novogen will also undertake a 1-for-6 non-renounceable rights issue offering of fully-paid ordinary shares to raise up to a maximum of approximately AU$15 million.
More than 2 million shares had changed hands as of 11:50 a.m., compared to the daily average volume of 1,133,600.