In early trade, Achieve Life Sciences slumped 30.4% to US$3.62 on the news.
The offering, which is set to raise US$12m, is comprised of class A shares priced at US$4 per share; each unit consists of one share plus a five-year warrant to purchase one share of common stock with an exercise price of $4 per share.
The outreach effort also includes class B units, priced at a public offering price of US$1,000 per unit, with each unit comprised of one share of Series A preferred stock, which is convertible into 250 shares of common stock that also carries an exercise price of $4 per share.
A total of 710,500 shares of common stock; 9,158 shares of Series A preferred stock convertible into 2,289,500 shares of common stock; and total warrants to purchase 3,000,000 shares of common stock will be issued as part of the offering.
Ladenburg Thalmann & Co is the book runner on the offering.