Sellas Life Sciences Group Inc. SLS said Friday that it raised $20.0 million, through the public sale of common shares and warrants to buy stock. Shares of the biopharmaceutical company, which is focused on cancer treatments, plummeted 43.1% in premarket trading, after the offering was initially announced without terms late Thursday. That’s puts the stock on track for a record one-day loss, surpassing the previous record selloff of 33.0% on Oct. 19, 1987, a day known on Wall Street as Black Monday. The company said it sold 7.22 million common shares, accompanied with warrants to buy up to 7.22 common shares, at $2.77 per share and accompanying warrant. The warrants are immediately exercisable, and will expire in five years. The stock has rallied 50.0% over the past three months through Thursday, while the iShares Biotechnology exchange-traded fund IBB has shed 3.4% and the S&P 500 SPX has slipped 0.4%.
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