Oragenics (NYSEMKT:OGEN) stock is falling on Wednesday after the antibiotics development company announced details of a public offering for its shares.
Oragenics is selling 1.4 million shares of OGEN stock for $1.50 each. The company is also allowing underwriters ThinkEquity and Laidlaw & Company to purchase another 210,000 shares at the public offering price.
Oragenics is expecting to raise gross proceeds of $2.1 million from this public offering. It will use these funds to fuel its “continued development of ONP-002.” This is its neurosteroid drug compound designed to treat mild traumatic brain injuries. The money will also go toward general corporate purposes and working capital.
How This Affects OGEN Stock
A public stock offering increases the total number of OGEN shares on the market. That means it also dilutes the stakes of current investors in the company. This is one of the reasons shares are down today.
Adding to that is the public offering price of $1.50 per share. Investors will note that that’s a strong discount compared to its prior closing price of $2.45 per share. That’s another reason shares of OGEN are falling today.
OGEN stock is down 45.3% as of Wednesday morning as some 348,000 shares change hands. That’s already well above its daily average trading volume of about 37,000 shares.
Investors who want to dive into even more of the most recent stock market stories this morning are in luck!
We’re offering all of the hottest stock market coverage traders need to know about on Wednesday! A few examples include why Beyond Meat (NASDAQ:BYND) and Nauticus Robotics (NASDAQ:KITT) stock are up today, as well as a look at our stock pick of the day. You can find out more on these matters at the following links!
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On the date of publication, William White did not hold (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.
