By Colin Kellaher
Shares of 22nd Century Group tumbled 25% and hit a new 52-week low on Thursday after the biotechnology company said it plans to raise $3 million in a registered direct offering.
The Buffalo, N.Y., company said it agreed to sell 778,634 shares at $3.80 apiece, above Wednesday’s closing price of $3.62, and to issue the buyers six-month warrants to buy up to 1.56 million additional shares at $3.80 each.
Shares of 22nd Century, which had about 15.9 million shares outstanding before the sale after executing a 1-for-15 reverse stock split earlier this week, were recently down 25% to a 52-week low of $2.83.
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