Lineage Cell Therapeutics (NYSE:LCTX) shares tumbled 20% after pricing an offering to raise up to $66M.

The biotech entered into definitive agreements with certain investors and Broadwood Partners, an affiliate of its board member Neal Bradsher, for the purchase and sale of up to 39.47M common shares and accompanying warrants to purchase 39.47M shares at a combined price of $0.76 a share and accompanying warrant.

Each warrant will be exercisable at a price of $0.91 per common share. The potential gross proceeds to Lineage from the warrants, if fully exercised on a cash basis, will be ~$36M.

Lineage (LCTX) expects to receive $24M in aggregate gross proceeds from the offering with respect to the investments by the unaffiliated institutional investors, and around $6M from the offering with respect to the investment by Broadwood.

It currently plans to use the net proceeds from the offering for working capital and general corporate purposes, including research and development expenses and capital expenditures.