Sellas Life Sciences Group (SLS) said Thursday it will receive gross proceeds of about $23.6 million from the exercise of existing warrants held by an institutional investor.

In consideration for the exercise of the warrants, the investor will receive new unregistered warrants to buy up to about 19.7 million shares and an exercise price of $1.88 per share, the company said,

The new warrants will be exercisable immediately and will expire five years and six months from the date of issuance, the company said.

The transaction is expected to close on or about Friday.

Sellas shares were down by more than 6% in recent premarket activity.