Oragenics (OGEN) stock plummeted on Tuesday after the antibiotics company priced a public offering of preferred shares and warrants. The company reached an agreement to sell 800,000 shares of its Series H Convertible Preferred Stock and warrants for another 800,000 shares. The combined units will sell for $25, which is also the exercise price for the warrants. The preferred stock can be converted to OGEN stock at a price of $2.50 per share.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Oragenics said the gross proceeds from this offering will be $20 million. The company intends to use this money to fund its ongoing ONP-2 concussion clinical trials, cover related research and development activities, repay a $3 million bridge note, and for working capital and other general corporate purposes.
OGEN stock was down 53.93% in pre-market trading on Tuesday, following a 5.68% drop yesterday. The shares have also decreased 65.52% year-to-date and 87.52% over the past 12 months. Today’s news came with heavy trading, as about 8.5 million shares changed hands, compared to a three-month daily average of roughly 444,000 units.
Is Oragenics Stock a Buy, Sell, or Hold?
Wall Street’s coverage of Oragenics stock is thin, but TipRanks’ AI analyst Spark has the company covered. Spark rates OGEN stock an Underperform (29) with no price target. It cites “significant financial distress, with ongoing unprofitability, negative equity, and cash flow issues” as reasons for this stance.
