CORAL GABLES, FL - Coral Gables-based Catalyst Pharmaceutical Partners said it plans to launch a $3.5 million stock offering, but its share price reacted negatively after the announcement.
The developmental-stage company (NASDAQ: CPRX) said it would sell 3.05 million shares of its common stock plus warrants to purchase an additional 1.52 million shares of its common stock. The price is $1.15 a share.
Catalyst said it expects to keep $3.15 million of the offering proceeds. The offering should close Nov. 2. Roth Capital Partners is the manager of the offering.
The company is conducting a Phase II clinical trial of drug candidate CPP-109 to treat cocaine addiction.
Catalyst shares tumbled 26 cents, or 20 percent, to $1.04 in afternoon trading. The 52-week high was $2.25 on June 10. The 52-week low was 89 cents on Dec. 21.