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Investing.com -- Cogent Biosciences Inc (NASDAQ:COGT) stock dropped 5.7% Tuesday after the biotechnology company announced plans to raise $150 million through a public offering of common stock.
The Waltham, Massachusetts-based firm said it would offer $150 million of its common shares and grant underwriters a 30-day option to purchase up to an additional $22.5 million of shares on the same terms.
Cogent plans to use the net proceeds to fund continued development, regulatory and commercial preparation activities for its lead product candidate bezuclastinib, as well as to support its planned commercial launch and general corporate purposes.
The offering is being managed by J.P. Morgan, Leerink Partners, and Guggenheim Securities as joint book-running managers, with LifeSci Capital acting as lead manager.
Cogent Biosciences focuses on developing precision therapies for genetically defined diseases. The company’s stock decline reflects typical market reaction to share offerings, which can dilute existing shareholders’ ownership stakes.
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