Kiromic BioPharma Stock Plunges After $40M Equity Raise Issued At 24% Discount

Kiromic BioPharma Inc (NASDAQ:KRBP) has priced an underwritten public offering of 8 million shares at $5.00 per share, for gross proceeds of $40 million.
The offer price is at a 24% discount on the last close price of $6.57 on Tuesday.
Underwriters have an option to purchase up to an additional 1.2 million shares.
The offering will close by July 2.
ThinkEquity, a Fordham Financial Management division, is acting as the sole book-running manager for the offering.
The proceeds will be used for ALEXIS-ISO-1 and ALEXIS-PRO-1 product candidates, working capital, and general corporate purposes.
In May, the company submitted an Investigational New Drug to the FDA for Phase 1 trial for CAR T-Cell therapy for any solid malignancy expressing Iso-mesothelin. Pending FDA authorization, dosing will start in Q3 of 2021.
Price Action: KRBP shares are down 28% at $4.78 during the market session on the last check Wednesday.