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Investing.com -- Oragenics Inc (NYSE:OGEN) stock plunged 58% after the neurological disorder treatment developer announced a new preferred stock offering expected to raise approximately $20 million in gross proceeds.
The company has entered into a placement agency agreement to sell up to 800,000 shares of Series H Convertible Preferred Stock and warrants to purchase an additional 800,000 preferred shares. Each preferred share and accompanying warrant will be priced at $25.00, with the preferred stock convertible into common shares at a conversion price of $2.50 per share.
Oragenics plans to use the proceeds to fund ongoing clinical trials for its ONP-2 concussion treatment, support related research and development activities, repay a $3 million bridge note, and for general corporate purposes.
Dawson James Securities is serving as the sole placement agent for the offering, which is expected to close around July 2, 2025, subject to customary closing conditions.
The significant stock decline reflects investor concerns about potential dilution from the convertible offering, as the company shifts its focus toward developing intranasal pharmaceuticals for neurological disorders.
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