Inovio Pharmaceuticals stock plunges after announcing public offering

Published 02/07/2025, 21:24
© Reuters.

Investing.com -- Inovio Pharmaceuticals Inc (NASDAQ:INO) stock plunged 14% after the company announced plans for an underwritten public offering of its common stock and warrants.

The Plymouth Meeting, Pennsylvania-based biotech firm said it intends to offer shares of its common stock, or pre-funded warrants to purchase common stock, along with accompanying Series A and Series B warrants. All securities in the proposed offering will be sold by Inovio.

Piper Sandler & Co. is acting as the sole book-running manager for the offering. Inovio plans to grant the underwriter a 30-day option to purchase additional shares and/or accompanying warrants in an amount up to 15% of the securities offered under the same terms and conditions.

The company noted that the proposed offering is subject to market conditions, with no assurance regarding its completion timeline or final terms.

Public offerings of additional shares typically put downward pressure on a company’s stock price as they signal potential dilution of existing shareholders’ stakes. Investors often react negatively to such announcements, particularly when a company issues both shares and warrants, which can lead to further dilution if exercised.

Inovio did not disclose how it plans to use the proceeds from the offering in its announcement.

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