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Investing.com -- Cognition Therapeutics Inc. (NASDAQ:CGTX) stock fell 17% after the clinical-stage company announced a $30 million registered direct offering of common stock.
The offering involves the sale of 14,700,000 shares to two new institutional investors, including what the company described as a "preeminent global investment manager." The transaction is expected to close around August 29, 2025, subject to customary closing conditions.
Cognition, which develops drugs targeting neurodegenerative disorders, plans to use the proceeds to fund preparation for Phase 3 programs of its zervimesine treatment, as well as for working capital and general corporate purposes.
Titan Partners Group, a division of American Capital Partners, is serving as the sole placement agent for the offering.
The significant stock decline reflects typical market reaction to equity offerings, which often dilute existing shareholders’ stakes. Cognition’s share count will increase substantially with the addition of 14.7 million new shares through this transaction.
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