Cassava Sciences Inc. [NASDAQ: SAVA] shares plummeted 25.13% during the trading session of Friday. The biotechnology company has announced Friday the pricing of its previously disclosed underwritten public offering.
Cassava Sciences has provided the offer of 9,375,000 shares of its common stock, par value $0.001 per share, at a price to the public of $8.00 per share. It has given the 30-day option of additional 1,406,250 shares of common stock purchases to the underwriters.
Cassava Sciences [NASDAQ: SAVA] shares were trading down 25.13% at $8.37 at the time of writing on Friday. Cassava Sciences [NASDAQ: SAVA] share price went from a low point around $1.21 to briefly over $12.68 in the past 52 weeks. Furthermore, the SAVA market cap has remained high, hitting $204.90 Million at the time of writing.
The company reported that Cantor Fitzgerald & Co. will lead the offering as a book-running manager. H.C. Wainwright & Co. are serving as joint book-running manager for the offering. Maxim Group LLC is serving as a co-manager for the offering.
It has been revealed that the company will receive a gross profit from the offering of approximately $75.0 million. Cassava Sciences would use the profits from the offering to fund a Phase III clinical program of sumifilam. Additionally, Sumifilam is the lead candidate of the company for the treatment of Alzheimer’s disease.
Moreover, the offering will be anticipated to close on or about November 17, 2020, after satisfying the closing conditions.