IBio (IBIO) on Friday filed a preliminary prospectus for the sale of up to around 11.3 million shares of its common stock by certain selling stockholders.

The shares are issuable upon the exercise of warrants sold to the selling stockholders in a private placement completed on April 30, the company said.

The warrants have an exercise price of $0.86 per share and will expire five years after issuance, iBio said.

The company said that it will not receive any of the proceeds from the sale of the shares, but will receive approximately $9.7 million in cash if the warrants are exercised in full. This will be used for working capital and general corporate purposes, the company added.

Shares of iBio were down 5.8% in recent trading Friday.

Price: 0.97, Change: -0.06, Percent Change: -5.83