Stock Alert: Equillium Falls 20% After Pricing Stock Offering

(RTTNews) - Shares of Equillium Inc. (EQ) are losing more than 20 percent or $1.81 in Friday's morning trade at $7.01.

Thursday, the California-based clinical stage biotechnology company said it has priced an underwritten public offering of 5 million shares of its common stock at $7.00 per share. It has also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares at the public offering price less the underwriting discount. The offering is expected to close on or about August 18.

Equillium expects gross proceeds from the offering of about $35 million and to use it to primarily fund the continued development of current and future product candidates in its pipeline, potential acquisitions of new products, and for working capital as well as general corporate purpose.

Equillium has traded in a range of $2.20 to $27.05 in the past 52 weeks.