Ocugen (NASDAQ:OCGN) stock is falling on Wednesday after the pharmaceutical company revealed details of a public offering.
Ocugen has announced that it’s selling 30 million shares of OCGN stock for a total value of $16.5 million. This has the company valuing shares of OCGN at 55 cents each. For the record, the stock closed out normal trading hours on Tuesday at about 72 cents.
To go along with this, Ocugen is allowing underwriters to acquire another 4.5 million shares within 30 days of the offering. Cantor Fitzgerald & Co. is acting as the sole book-running manager for the public offering.
Ocugen also notes that it already has plans for the money it will gain from this public offering. The company intends to use the $16.5 million for “general corporate purposes, capital expenditures, working capital, and general and administrative expenses.”
OCGN Stockholder Reactions
Investors in OCGN stock aren’t happy about today’s public offering news. That makes sense as it increases the total number of outstanding shares. As a side effect of this, current investors’ stakes in the company are diluted. Also, the pricing of the offering is below yesterday’s close, which also devalues the stock.
All of this has shares of OCGN stock seeing strong trading volume early on Wednesday. As of this writing, close to 3 million shares of the stock have changed hands. For comparison, the company’s daily average trading volume is about 6.5 million shares.
OCGN stock is down 22.1% as of Wednesday morning.
There’s more stock market news traders will want to read about below!
We’ve got all of the hottest stock market news worth reading about on Wednesday! That includes what’s happening with shares of PTC Therapeutics (NASDAQ:PTCT), EpicQuest Education (NASDAQ:EEIQ), and Minerva Surgical (NASDAQ:UTRS) stock moving today. All of that is ready to go at the following links!
More Stock Market News For Wednesday
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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.