Here's Why Neoleukin Therapeutics Dropped Today

Shares of Neoleukin Therapeutics (NASDAQ: NLTX) fell nearly 18% today after the company announced the pricing of a public offering of common stock and a separate offering of warrants to purchase common stock. The development-stage drug developer agreed to sell up to 5.75 million shares of common stock, including warrants, for $15.25 apiece.

The combined offerings could raise up to $87.7 million in gross proceeds. Neoleukin Therapeutics ended March with $139 million in cash and reported an operating cash outflow of only $6.4 million during the first quarter of the year. However, investors can expect operating expenses to grow as pipeline assets transition to clinical trials.

As of 12:18 p.m. EDT, the small-cap stock had settled to a 17.7% loss.

Source Fool.com