Oragenics Inc (NYSE:OGEN) experienced a sharp 58% drop in its stock price after revealing plans to raise roughly $20 million through a new preferred stock offering.
The biotech company has signed a placement agency agreement to issue up to 800,000 shares of its Series H Convertible Preferred Stock, along with warrants to purchase an additional 800,000 preferred shares. Each preferred share and its corresponding warrant will be priced at $25.00. These preferred shares can be converted into common stock at a conversion price of $2.50 per share.
Funds raised from this offering will be directed toward advancing clinical trials for Oragenics’ ONP-2 treatment for concussions, supporting ongoing R&D efforts, repaying a $3 million bridge loan, and covering general corporate expenses.
Dawson James Securities is acting as the exclusive placement agent, with the offering anticipated to close by July 2, 2025, pending standard closing conditions.
The steep decline in Oragenics’ stock reflects investor worries about the dilution impact of the convertible preferred shares, as the company intensifies its focus on developing intranasal therapies for neurological conditions.