CytRx Corp. said Friday that it will offer about 15.3 million common shares and 3.8 million warrants in a direct offering to raise money for its drug development programs.

The Los Angeles biotech said a few hours before the markets closed that it expects net proceeds of about $18.3 million from the offering, with the shares priced at $1.31. The warrants to buy stock will have an exercise price of $1.70.

CytRx shares closed down 8 cents, or 6 percent, to $1.21 on the Nasdaq following the announcement.

The stock earlier jumped 21 percent after the company said European regulators had recommended that the company’s leukemia drug candidate be given special patent protection.

The European Medicines Agency gave a positive opinion for the company’s application to sell tamibarotene to treat acute promyelocytic leukemia, a rare form of cancer of the blood and bone marrow.

CytRx has been seeking so-called orphan status for the drug, which would give it 10 years of marketing exclusivity in the European Union as well as special assistance during the review process. Orphan status is reserved for drugs that that treat rare conditions, thus making it more difficult for companies to recoup their development costs.

Tamibarotene already has orphan status in the United States.

“We consider this positive opinion important as it supports our ability to pursue marketing approval for tamibarotene in the EU, in addition to our ongoing U.S. clinical program,” said CytRx Chief Executive Steven Kriegsman in a statement.