Large investors in a Durham-based developmental drug company want to sell 11.9 million shares of the company, according to a filing Thursday with the Securities and Exchange Commission.
The investors of Fennec Pharmaceuticals hope to sell the shares at a price of $5.92 each, resulting in $70 million in proceeds.
The Durham-based company’s shares closed Thursday at $6.55, down 44 cents, or 6.3 percent. It will not receive any proceeds from the sale of the stock.
In June, the company raised $7.6 million in a private equity offering. Investors purchased 1.9 million shares at $4 per share.
At that time, Essetifin SpA, which owned 2.6 million shares, or 19.2 percent, of Fennec prior to the offering, purchased an additional 300,000 shares and now owns more than 21 percent of the Durham-based company.
In the filing Thursday, Essetifin is offering to sell all 2.9 million shares it owns of Fennec.
The largest investor in the company, Southpoint Capital Advisors, is proposing to sell 3.9 million shares of Fennec stock.
Manchester Management Co., which owns 2.5 million shares in Fennec, is proposing to sell 1 million shares of its holding.
Fennec Pharmaceuticals is focused on the development of sodium thiosulfate for the prevention of loss of hearing in pediatric cancer patients.
Children undergoing chemotherapy face the loss of hearing. Fennec Pharma hopes that sodium thiosulfate will allow these children to keep their hearing and prevent permanent disability.
The drug has received orphan drug designation, which means it is intended for the safe and effective treatment, diagnosis or prevention of rare diseases and disorders that affect fewer than 200,000 people in the U.S.