08:34 AM EDT, 07/15/2024 (MT Newswires) -- MediWound ( MDWD ) said Monday it is selling about 1.5 million ordinary shares in a private placement at $17.20 per share for gross proceeds of about $25 million.

The company said it is selling the shares to new and existing investors, including Molnlycke Health Care, which is leading the private investment in public equity offering with a $15 million investment.

MediWound ( MDWD ) said it intends to use the net proceeds to support general corporate purposes and to advance the pre-commercial activities and accelerate the development of large-scale manufacturing capabilities for its potential wound treatment EscharEx.

The company said it expects to close the offering "within several days."

MediWound ( MDWD ) also said that concurrently with the offering, it entered into a collaboration agreement that will give Molnlycke specific rights, including a representative to attend meetings of the company's research and development committee.

Shares of MediWound ( MDWD ) fell 12% in premarket activity on Monday.

Price: 18.51, Change: -2.65, Percent Change: -12.52