Repros Therapeutics shares rise on financing deal

The stock gained 98 cents, or 16.1 percent, to $7.06 in afternoon trading. Shares have traded between $5.31 and $12.96 over the last 52 weeks.

Meanwhile, the broader market fell sharply as the House grappled over a proposed $700 billion bailout of Wall Street.

On Monday, The Woodlands, Texas-based company said it will sell 2.4 million shares for about $6.50 apiece, bringing in about $15.6 million. The sale is expected to close Friday.

As of Sept. 29, the company had cash and cash equivalents of about $9.4 million.

The company's largest shareholder, Efficacy Capital, is buying just over 1.8 million shares, with another institutional stockholder buying 550,000 shares, Repros said. The deal also includes a provision allowing Efficacy Capital to own up to 40 percent of Repros' outstanding stock while permitting it to name two directors to the board.

Mark Lappe, a managing partner of Efficacy Capital, and Dr. John C. Reed, president and chief executive of Burnham Institute for Medical Research, are joining the board of directors.

Repros' lead drug candidate is Proellex, now in late-stage studies, aimed at treating anemia associated with uterine fibroids prior to surgery and as a treatment for endometriosis, which is when a tissue similar to the lining of the uterus is found elsewhere on the body.