01:51 PM EDT, 11/05/2021 (MT Newswires) -- NervGen Pharma Corp., (NGEN.V), a clinical-stage biotech company, said Friday that it has increased the size of its $5 million bought deal offering.
Under the upsized deal terms, the underwriters have agreed to buy, on a "bought deal" basis, 3.2 million units at $2.50 per unit for gross proceeds of $8 million. The offering is expected to close by Nov. 12
The company's stock dropped 11.1% on last look on Friday in Canada.
Each unit will be comprised of one common share and one-half of one common share purchase warrant. In connection with the offering, the company has granted the underwriters an over-allotment option to buy an additional 480,000 units at the issue price which, if exercised in full, would increase the gross proceeds to about $9.2 million.
NervGen plans to use the net proceeds for continued development of lead drug candidate, NVG-291, and general corporate purposes.
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