Fortress Biotech, Inc. (NASDAQ: FBIO) saw its shares dwindle early Friday, as the company, an innovative biopharmaceutical concern focused on efficiently acquiring, developing and commercializing or monetizing promising therapeutic products and product candidates, today announced the pricing of its public offering of an aggregate of 5,885,000 units, at a public offering price of $1.70 per unit, consisting of (i) one share of common stock (or one pre-funded warrant in lieu thereof) and (ii) one warrant to purchase one share of common stock, immediately exercisable at a price of $1.70 per share and expiring five years from the date of issuance.
Certain directors and officers of the Company participated in the offering and purchased an aggregate amount of approximately $2.9 million of units at the same purchase price.
The gross proceeds from the offering, before deducting the placement agent’s fees and other offering expenses, are expected to be approximately $10.0 million. Fortress expects to use the net proceeds from the offering for its operations, including, but not limited to, general corporate purposes, which may include research and development expenditures, clinical trial expenditures, manufacture and supply of product, and working capital.
The offering is expected to close on or about November 14, subject to the satisfaction of customary closing conditions.
FBIO shares fell 69 cents, or 33%, to $1.40.