BOULDER — Brickell Biotech Inc. (Nasdaq: BBI) will offer 17.5 million new shares of stock in the coming days as it looks to raise millions from positive clinical data it released on its flagship drug candidate.
In filings with the U.S. Securities and Exchange Commission, the Boulder-based dermatology company said it is pricing the new shares at $1.15 each, which will raise $20.1 million for research, working capital and corporate costs.
Brickell’s stock price doubled on Monday after reporting its anti-sweating treatment showed strong benefits for a majority of patients in the pivotal Phase III clinical trial, clearing a path for submitting the product to U.S. regulators for final sale approval in coming months. Kaken Pharmaceutical Co. Ltd, Brickell’s Japanese development partner, submitted the drug candidate to Japanese drug regulators for final approval this year.
Brickell’s stock price declined heavily on the news of the additional stock issuance due to the dilution of the company’s shares outstanding by an additional 45%. Its stock fell by 22.48% Thursday to end at $1 per share.
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