Shares of DelMar Pharmaceuticals Inc (NASDAQ:DMPI) have fallen $1.02 or 25% in pre-market trading after the company priced a registered public offering of 2.769 million shares and warrants to buy another 2.076 million shares at $3.25 per share and related warrant. The warrants have an exercise price of $3.50 per share, and are immediately excercisable. DelMar intends to use the net proceeds from the offering for general corporate purposes, which may include working capital, capital expenditures, research and development and other commercial expenditures.
DelMar Pharmaceuticals Inc (NASDAQ:DMPI) is a biopharmaceutical company focused on the development and commercialization of new cancer therapies. Specifically, DelMar’s VAL-083 drug candidate is currently undergoing clinical trials in the United States as a potential new therapy for Glioblastoma Multiforme. Due to the stock’s light average volume and the size of the offering, it seems that some traders wanted a big discount before buying.
What Does The Smart Money Sentiment Say?
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None of the 742 top funds that we track reported holding a stake in DelMar Pharmaceuticals Inc (NASDAQ:DMPI) at the end of Q4, which is the most recent 13F reporting period.
The Bottom Line
DelMar Pharmaceuticals Inc (NASDAQ:DMPI) shares have plunged on Thursday due to a secondary offering. For more reading, check out ‘11 Most Sold Non Prescription Drugs‘.