* Repros to sell 3.5 mln shrs at $1.27 apiece

* Repros to raise about $4.4 mln in gross proceeds

* Targacept to offer 2.2 mln shrs at $21 apiece

* Repros shares fall 24 pct, Targacept down 8 pct

Oct 8 (Reuters) - Shares of Repros Therapeutics Inc (RPRX.O: Quote, Profile, Research) and Targacept Inc (TRGT.O: Quote, Profile, Research) fell sharply, after the companies said they plan to raise money by selling shares at a discount.

Biopharmaceutical firm Repros said it would sell 3.5 million common shares at $1.27 apiece to institutional investors for gross proceeds of about $4.4 million.

The offer price represents a discount of 32 percent to the stock's Wednesday close of $1.86.

Shares of Repros fell as much as 24 percent but pared some losses to trade down 36 cents at $1.50 Thursday morning on Nasdaq.

In August, Repros said it does not have enough cash to fund ongoing operations and a failure to raise cash in the immediate short term may result in the filing of bankruptcy and dissolution of the company. [ID:nBNG17708]