Yesterday was an event packed day for biotechnology stocks with the entire healthcare segment recording gains of over 1%. However, the stock of Celsion Corporation (NASDAQ:CLSN) failed to make a place in the list of biotech stocks that closed in deep green. On contrary, the stock posted drop of over 33% to close the session at $0.220. The decline came at a share volume of 32,317 compared to average share volume of 1.57 million.
Celsion reported the pricing of a public offering with anticipated aggregate gross proceeds of almost $5 million. The public offering price was fixed at $0.23 a share, with each share of company’s common stock offered with one 5-year warrant to buy 0.75 of per share of common stock, at exercise price of $0.23 a share. This offering is anticipated to close by February 21, 2017, depending on customary closing conditions.
Maxim Group LLC will serve as co-placement agent and Rodman & Renshaw will be the lead placement agent related to this offering. The projected net proceeds are expected to be almost $4.3 million, discounting the proceeds from the warrants exercise.
Celsion plans to use these proceeds mainly to continue supporting advancement of OPTIMA, its current Phase 3 clinical study of ThermoDox® in subjects with OVATION and primary liver cancer, its current Phase I clinical study of GEN-1 in subjects with advanced ovarian cancer and also for general corporate purposes.
The five ETFs with the major exposure to equities in the same focus region and area as CLSN-US. These exchange traded funds may not have the maximum percentage of Celsion, but provider a broader region/ sector exposure further reducing single stock risk. These 5 ETFs are VanEck Vectors Biotech ETF, iShares Nasdaq Biotechnology ETF, Powershares Dynamic Biotechnology and Genome Portfolio, Powershares Dynamic Pharmaceuticals Portfolio and SPDR S&P Biotech ETF.