Friday turned out to be a nightmare for shareholders of Ampliphi Biosciences Corp (NYSEMKT:APHB) after the biotechnology firm announced the pricing of an underwritten public offering of 6,956,522 shares of its common stock, and common warrants to purchase up to an aggregate of 6,956,522 shares of common stock. Each share of common stock and, as applicable, pre-funded warrant is being sold together with a common warrant to purchase one share of common stock at a combined effective price to the public of $1.50 per share, a 48% discount to yesterday’s closing price, and accompanying common warrant. For each pre-funded warrant AmpliPhi sells, the number of shares of common stock AmpliPhi is offering will be decreased on a one-for-one basis.

Reacting to the news, Ampliphi Biosciences shares are down nearly over 55% to $1.21, as of this writing.

The common warrants will be immediately exercisable at a price of $1.50 per share of common stock and will expire five years from the date of issuance. The shares of common stock or the pre-funded warrants, and the accompanying common warrants, can only be purchased together in the offering but will be issued separately and will be immediately separable upon issuance. The offering is expected to close on or about May 10, 2017, subject to customary closing conditions.

AmpliPhi also has granted to the underwriter a 30-day option to purchase up to an additional 1,043,478 shares of common stock and/or warrants to purchase up to 1,043,478 shares of common stock of AmpliPhi, at the public offering price less discounts and commissions.

The net proceeds to AmpliPhi from this offering are expected to be approximately $9.8 million, after deducting underwriting discounts and commissions and before deducting other offering expenses payable by AmpliPhi, and excluding any proceeds that may be received upon exercise of the warrants. AmpliPhi anticipates using the net proceeds from the offering for general corporate purposes, including manufacturing expenses, clinical trial expenses, research and development expenses and general and administrative expenses.

AmpliPhi is a biopharmaceutical company focused on the development of an internally-generated pipeline of naturally occurring viruses called bacteriophage (phage) for the treatment of bacterial infections. In its two recently-released Phase 1 studies with AB-SA01, the company demonstrated AB-SA01 was safe, well-tolerated and effective in reducing the quantity of S. aureus infecting patients’ sinuses. These patients had previously failed standard of care treatment, including previous sinus surgery.