Lyra Therapeutics falls after direct stock deal, private placement

Shares of Lyra Therapeutics LYRA.O fall 30.5% to $9.30 in morning trading

Stock set for worst day in over one year, if losses hold

Drug developer enters agreement for sale of 423,372 shares in direct stock offering for net proceeds of $5 million

Offer price of $11.81 represents 11.7% discount to stock's last close

Co intends to use net proceeds from offering for working capital and other general corporate purposes, including potential clinical development, manufacturing and other pre-commercialization expenses for lead chronic rhinosinusitis therapy candidate LYR-210

Concurrently, in private placement, co offers warrants to purchase up to 846,744 shares, with exercise price of $11.56 per share

If holders of private placement warrants exercise them in full in cash, LYRA would receive additional gross proceeds of about $9.8 million

H.C. Wainwright & Co. is acting as placement agent for offering

Including session's move, stock down 11.3% YTD