Benzinga | Jun 16, 2021 06:57AM EDT

Inhibikase Therapeutics Stock Drops After Follow-On Equity Offering Of $45M Issued At 26% Discount

* Inhibikase Therapeutics Inc (NASDAQ:IKT) has priced an underwritten public offering of 15 million shares at $3/share for gross proceeds of approximately $45 million.

* The offer price represents a 26% discount on the last close price of $4.03 on Tuesday.

* Underwriters have an option to purchase up to 2.25 million additional shares.

* The offering will close by June 18.

* The company will use the proceeds to fund the Phase 2 efficacy trial and Phase 1b extension study for IkT-148009 in Parkinson's, production of IkT-148009 for Phase 1b and Phase 2 studies.

* ThinkEquity, a Fordham Financial Management division, is acting as the sole book-running manager for the offering. JonesTrading Institutional Services LLC is acting as the co-manager for the offering.

* In February, the first patients were dosed in a Phase 1 trial of IkT-148009.

* In December 2020, the company raised $18 million after closing its IPO.

* Price Action: IKT shares are down 24.9% at $3.03 during the premarket session on the last check Wednesday.