SPECIAL REPORT The Top 7 Stocks for 2024

Why Is OKYO Pharma (OKYO) Stock Down 10% Today?


  • OKYO Pharma (OKYO) stock is dropping on share offering news.
  • The company intends to offer 3,503,665 shares to certain investors.
  • It’s also making an offering for its subscription shares.
OKYO Stock - Why Is OKYO Pharma (OKYO) Stock Down 10% Today?

Source: shutterstock.com/Champhei

OKYO Pharma (NASDAQ:OKYO) stock headed lower on Tuesday after the company revealed details of a stock offering for its American Depositary Shares (ADSs).

OKYO Pharma has revealed plans to sell 3,503,665 ADSs of OKYO stock to certain investors. The shares being offered in this agreement are priced at $1.50 each. This has the company expects to raise $5.3 million from the offering.

To go along with this, the company is also offering 8,673,658 new subscription shares. These are priced at 23 cents each, which is the equivalent of $1.50 per ADS. That has it expecting gross proceeds of roughly $100,000 from this offering.

OKYO Pharma notes that it already has plans for the funds it will generate from this offering. The main intent is to use the money to fund its Phase 2 clinical trial of OK-101 in DED patients. The money will also be used for working capital and general corporate purposes.

What This Means for OKYO Stock

Investors in OKYO stock aren’t reacting well to today’s news, which makes sense. We often see stocks fall alongside public offering news. That’s due to the offering diluting current shareholders’ stakes. They are also often priced below market value. That holds true with this offering, as OKYO closed out trading on Monday at $2.11 per share.

OKYO stock is down 10% in pre-market trading on Tuesday.

There’s more stock market news traders will want to know about below!

We’ve got all of the hottest stock market news investors need to know about on Tuesday. That includes why shares of GitLab (NASDAQ:GTLB), First Republic Bank (NYSE:FRC), and PacWest Bancorp (NASDAQ:PACW, NASDAQ:PACWP) stock are moving today. All of that news is ready to go at the following links!

More Tuesday Stock Market News

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/03/why-is-okyo-pharma-okyo-stock-down-10-today/.

©2024 InvestorPlace Media, LLC