Shares of Sophiris Bio Inc. were tanking Tuesday on news of the company’s secondary stock offering.

The company announced that it would sell 6.5 million shares of its common stock and related warrants to raise $26 million.

In a regulatory form filed with the Securities and Exchange Commission, Sophiris disclosed that the proceeds would fund a new clinical trial and development efforts for its lead product candidate, topsalysin, and for working capital and general corporate purposes.

Sophiris Bio (Nasdaq: SPHS), formerly Protox Therapeutics Inc., is a biopharmaceutical company with locations in Canada and La Jolla, focused on products that treat urological diseases.

The company’s share price has dropped over 32 percent on the news, currently trading for $3.92 per share. However, the company’s stock price has noticeably jumped over the past 12 months, from $0.81 last August to nearly $4 per share today.