NEW YORK (AP) -- Shares of Fibrocell Science slumped Thursday after the company said it would sell 11 million shares of its stock at the discounted price of $4.10 per share.
Company shares closed at $4.99 Wednesday, meaning the offering is priced at a discount of 17.8 percent. The company's shares dropped 83 cents, or 16.6 percent, to $4.16 in afternoon trading.
Fibrocell's products are based on fibroblasts, a type of cell that is involved in producing collagen and growth factors that support skin and soft tissue. The company's Laviv treatment is designed to reduce the appearance of smile lines, and the company said it is developing treatments for restrictive burn scares, vocal cord scars, and acne scars and other conditions.
The Exton, Pa., company said the offering should close Tuesday. The underwriters of the sale will have the option to buy another 1.7 million shares to cover any over allotments.
Fibrocell Science Inc. had 27.5 million shares on the market as of Aug. 9.