By Mary de Wet
Black Diamond Therapeutics’ stock fell 10% in after-hours trading Wednesday after the precision oncology company said it has begun a public offering of $75 million of its common shares.
Shares recently traded at $5.13 after closing at $5.73, a day after finishing at a nearly 19-month high.
The company said Tuesday that it saw positive initial clinical data from the dose-escalation portion of the Phase 1 study of its lead drug candidate, BDTX-1535, which boosted shares.
The stock pulled back during the regular session Wednesday and extended those losses after hours.
At Wednesday’s closing price, Black Diamond Therapeutics would be selling about 13 million shares. The company also intends to grant the underwriters a 30-day option to purchase up to an additional $11.25 million of its common shares.
The company has about 36.6 million shares outstanding on a fully diluted basis, according to FactSet.
Black Diamond Therapeutics didn’t say what it would do with the offering’s proceeds. In May, the company said it had a cash runway into the third quarter of 2024.
Write to Mary de Wet at mary.dewet@dowjones.com
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