The Prescient Therapeutics Ltd (ASX: PTX) share price is plunging during late afternoon trade on Wednesday.
This follows the company's latest announcement regarding the launch of a share purchase plan (SPP).
At the time of writing, shares in the clinical stage oncology company are fetching at 18.5 cents each, down 11.90%.
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What are the SPP details?
A catalyst for the steep dive in the Prescient share price today is investor fears of an impending share dilution.
According to its release, Prescient advised it is seeking to raise $8 million via an SPP from retail investors.
Under the SPP, eligible shareholders can apply to buy a parcel of Prescient shares for 17.5 cents each.
This represents a 14.6% discount to the volume weighted average price (VWAP) over the last five trading days, and a 16.7% discount to the last closing price on 23 August 2022.
Eligible shareholders can apply for a minimum application amount of $5,000 with a maximum application amount of $30,000.
The closing date for the SPP will be 28 September. The new shares will be issued on 5 October, with trading available the following day.
Prescient will use the funds to progress the ongoing clinical development of its targeted therapies PTX-100 and PTX-200.
In addition, the company is aiming to advance its innovative cell therapies towards and into first-in-human clinical studies.
Prescient CEO and managing director, Steven Yatomi-Clarke commented:
The last couple of years in particular have been a period of incredible growth and progress for Prescient, and the company is seeking to maintain this momentum and its position at the forefront of oncology innovation…
Prescient share price snapshot
Since the beginning of the calendar year, Prescient shares have travelled lower to post a loss of 20%.
However, when looking at the year-to-date, the company's shares are up 3%.
Based on today's price, Prescient commands a market capitalisation of around $114.58 million with approximately 654.73 million shares on issue.
