Shares of Irvine’s Spectrum Pharmaceuticals Inc. slumped Wednesday after the drug maker said it was planning to raise $21 million in a stock sale.
Spectrum, which makes cancer and other drugs, said it would sell 2.9 million shares and warrants to buy an additional 1.5 million shares of stock to institutional investors.
The drug maker’s shares closed down 14% Wednesday on a market value of $217 million as investors worried that the sale would dilute their stake in Spectrum.
Spectrum’s latest stock sale comes about two weeks after it sold 1.7 million shares of its stock to institutional investors and received $10 million in proceeds.
The company said it would use the proceeds of the latest offering for general corporate purposes.
