Why did Oncternal Therapeutics, Inc. (ONCT) shares plunge in the post-hours trading?

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Oncternal Therapeutics, Inc. (NASDAQ: ONCT) stock dipped -24.6% to $4.75 in the after-hours session last-night as a biotech giant confirmed that owing to interest, the underwriter has decided to raise the size of the initially scheduled bid and buy on a firm commitment basis of 16,666,667 common stock shares of the Company, at a public price of $4.50 per share. The closing of the offering is scheduled to occur on or around December 14, 2020, subject to customary closing conditions being met.

H.C, H.C. Wainwright & Co. acts with the offering as the sole book-running manager.

The Firm also issued a 30-day option to the underwriter to buy up to an additional 2,495,000 common stock shares at the price of the public offering, less underwriting discounts, and commissions. After deducting underwriting discounts and fees and offering costs and assuming no exercise of the underwriter’s opportunity to buy additional common stock, Oncternal’s gross receipts are estimated to be approximately $75.0 million. The organization plans to use this offering’s net proceeds for general corporate purposes, including spending on the clinical and preclinical production of cirmtuzumab and TK216, on the preclinical development ROR1 CAR-T software, and working capital.

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