Respiratory drug maker Discovery Laboratories Inc. (NASDAQ: DSCO) priced a secondary offering of slightly more than 16 million shares this morning, and the stock is getting pummeled as a result. Discovery priced the shares at $2.80, a discount of 20% to yesterday’s closing price of $3.50.
The company expects to realize net proceeds of $42.1 million from the share sale. The underwriters have a 30-day over-allotment option of about 2.41 million shares. Lazard Capital Markets LLC is the sole book-running manager for the offering, Stifel Nicolaus Weisel is co-lead manager, and ROTH Capital Partners, LLC is co-manager of the offering.
The shares are being offered from a shelf registration filed yesterday. The company did not indicate how the net proceeds would be used.
Shares of Discovery Labs are down -18% at $2.87 in a 52-week range of $1.44-$5.39.