The Ocugen (NASDAQ:OCGN) rollercoaster is thrilling investors again today as shares surged 60% higher in pre-market trading. The rocketing price of OCGN stock follows a 61.5% gain on Friday.
Today’s gains come as investors react to the company’s $23 million registered direct common stock offering that’s priced at a premium to the market. The transaction for 3 million common shares at $7.65 a piece is expected to close on or about Feb. 10.
The net proceeds of the sale will be used for general corporate purposes, capital expenditures, working capital and general and administrative expenses.
OCGN Stock Causing Investor Whiplash
To be sure, two days of massive gains are just one side of the volatility coin that is a clinical-stage biopharma stock. Last week, a more-than-50% gain on Feb. 2 was followed by a 13.8% drop the next day. By Feb. 4, shares resumed their ascent to close at $5.25 at week’s end.
Until December, Ocugen was known mostly as a clinical-stage developer of therapies for blindness.
But that month, Indian firm Bharat Biotech chose Ocugen as its partner to develop and commercialize COVAXIN. Bharat is known for its vaccine experience in India, with more than a dozen different vaccines in its pipeline. With this in mind, the company stepped up to the challenge of producing a vaccine for Covid-19. OCGN stock more than doubled on that news.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.