ADC Therapeutics (ADCT) shares rose 8.4% on Thursday after it announced a financial restructuring to bolster its balance sheet, extend cash runway into 2029, reduce leverage, and ramp strategic optionality to drive shareholder value.

The company said it entered a private investment in public equity financing deal to offer 12.9 million common shares at $1.42 apiece and pre-funded warrants to buy 48.1 million shares at $1.32 per warrant for gross proceeds of $86.6 million.

Proceeds will be used for continued funding of Zynlonta pipeline studies. The offering is expected to close on Oct. 22, according to a statement.

The company said it expects Q3 Zynlonta revenue of $21 million and cash and cash equivalents of $189.2 million as of Sept. 30. Zynlonta was developed to treat relapsed or refractory large B-cell lymphoma.

ADC amended a financing agreement with HealthCare Royalty to remove a $150 million change-of-control payment, according to the company.

Price: 1.54, Change: +0.12, Percent Change: +8.45