BERKELEY, Calif. (AP) -- Shares of Xoma Corp. slid Wednesday after the biotechnology company said that it will sell 13.3 million shares of its common stock at $3 per share, a 7 percent discount to its closing price of $3.22 on Tuesday.
The biotechnology company also granted the banks managing the offering an option to buy up to nearly 2 million more shares.
Xoma anticipates proceeds of roughly $36.9 million from the offering. The company, which develops antibody therapies, said in a regulatory filing that it plans to use the money for development and testing of its drugs, as well as for general corporate purposes.
Shares of Xoma, which is based in Berkeley, Calif., fell 23 cents, or 7.1 percent, to close at $2.99. Shares often fall on news of a big stock sale, as existing shareholders worry that the value of their holdings will drop.