Edesa Biotech Inc. (NASDAQ: EDSA) shares declined 15.2% in extended trading on Wednesday after the company announced an underwritten public offering of common shares and related securities.
The clinical-stage biopharmaceutical company said it will offer common shares or pre-funded warrants to purchase common shares, alongside accompanying common share warrants. All securities in the offering will be sold by Edesa itself. Guggenheim Securities has been appointed as the sole book-running manager for the transaction.
Under the terms disclosed, the underwriters have been granted a 30-day option to purchase additional common shares and warrants representing up to 15% of the total offering amount. The proposed offering remains subject to market conditions and other factors, with no guarantees regarding completion or final terms.
Edesa indicated that net proceeds from the offering will be allocated to general corporate purposes, including working capital, capital expenditures, research and development, and manufacturing expenses.
