Biotech drug developer Adventrx Pharmaceuticals Inc. on Friday said it will sell 14.5 million shares for $2.75 a piece to a group of accredited and institutional investors.

The company expects to raise gross proceeds of $40 million. Adventrx has about 73.6 million shares outstanding.

ThinkEquity Partners is the lead placement agent with Fortis Securities as the co-placement agent.

The company expects to close the offering by Nov. 8.

Adventrx shares fell 24 cents, or 7.8 percent, to $2.83 in morning trading on the American Stock Exchange. Shares have traded between $2.35 and $5.38 over the past 52 weeks.