Novogen (NVGN) Stock Falls Today on Private Placement

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.

NVGN ChartNVGN data by YCharts

More from Markets

Stocks Higher, Dollar Drops on Trump Fed Criticism

Stocks Higher, Dollar Drops on Trump Fed Criticism

How Sports Betting Will Impact TV M&A; Toys 'R' Us Lives On, Somewhere -- ICMYI

How Sports Betting Will Impact TV M&A; Toys 'R' Us Lives On, Somewhere -- ICMYI

Famed Chartist Marc Chaikin Gives Jim Cramer His Top Picks This Wednesday

Famed Chartist Marc Chaikin Gives Jim Cramer His Top Picks This Wednesday

Rewind: Jim Cramer on Trade, Pepsico, SodaStream, Estee Lauder and Nike

Rewind: Jim Cramer on Trade, Pepsico, SodaStream, Estee Lauder and Nike

How Alibaba Earnings and Jerome Powell's Jackson Hole Speech Could Move Markets

How Alibaba Earnings and Jerome Powell's Jackson Hole Speech Could Move Markets