The company announced late Thursday that it would issue approximately 18.3 million shares at a price of $5.45 per share. The stock fell to $5.27 in early Friday sessions, extending a downward trend that has seen the company lose nearly half its market value over the last 12 months. The transaction is expected to close on Monday.

Scaling Toward Commercialization

Proceeds from the offering are earmarked for critical launch readiness and medical affairs for Candel’s prostate cancer drug. The company also intends to use the capital to fund a late-stage clinical trial for its non-small cell lung cancer treatment and for general corporate purposes.

Citigroup, Cantor, and Stifel are serving as joint bookrunning managers for the deal. As part of the agreement, underwriters have a 30-day option to purchase up to 2.8 million additional shares at the offering price, less underwriting discounts.