Avid Bioservices Inc. plans to offer 9 million of its common shares at $2.25 apiece.

The Tustin, Calif.-based company expects gross proceeds of about $20.3 million from the offering.

The company also granted the underwriters an option to buy up to 1,350,000 additional common shares at the public offering price.

The offering is expected to close on or about Feb. 20.

Avid Bioservices plans to use the net proceeds for the expansion of its contract manufacturing business and general corporate purposes.

Wells Fargo Securities is acting as the sole book-running manager. H.C. Wainwright & Co. and Roth Capital Partners are acting as co-managers.