Prima BioMed shares are tanking on a capital raising to fund a breast cancer treatment

Dan Kitwood/Getty Images/Cancer Research UK

Prima BioMed lost some of its spectacular share price gains after it announced a $5 million capital raising.

The cash, up to $10 million if the offer is oversubscribed, will be used to fund clinical trials for a promising new breast cancer treatment, IMP321, and further research.

Prima BioMed shares closed up yesterday 44% to $0.085 after European authorities endorsed the further development of the treatment for breast cancer. This is a key step leading to marketing authorisation in the EU.

Today, it’s shares are down more than 30% to $0.058 after announcing the capital raising.

Each shareholder will be entitled to subscribe for up at $15,000 worth of new shares at 5 cents each.