NEW YORK (AP) -- Cempra's stock declined Friday as the pharmaceutical company priced a public stock offering at a 14 percent discount to its Thursday closing price.
THE SPARK: Cempra Inc. priced the offering of approximately 7.3 million shares at $7 each. This is below the $8.13 the stock closed at on Thursday.
Cempra — which went public in February 2012 — said that the offering's gross proceeds were $50.8 million. Net proceeds are expected to be about $47.7 million, after underwriting discounts and commissions and expenses.
The company is giving the underwriters a 30-day option to buy up to an additional 1.1 million shares to cover any excess demand. If the option is fully exercised, there would be about $7.2 million in additional net proceeds.
The offering is expected to close on Wednesday.
SHARE ACTION: Down $1.11, or 13.7 percent, to $7.02 in afternoon trading. The stock has traded between $5.26 and $9.56 over the past year. For the year to date, shares are up 27 percent.