SQZ Biotechnologies (NYSE: SQZ) fell by nearly 16% on Friday following the company’s announcement of a new funding round.
SQZ (pronounced “squeeze”) is issuing 3 million new shares of common stock in an underwritten public offering that was priced Friday at $20 per share. This is below the company’s $22 per share closing price on Thursday.
As is customary in secondary stock flotations, SQZ’s underwriters have been granted a 30-day option to purchase extra stock. In this case, they can buy up to 450,000 shares.