Shares of Cognition Therapeutics Inc. (NASDAQ:CGTX) declined 17% after the clinical-stage biotech company announced a $30 million registered direct offering of common stock.
The offering includes the sale of 14,700,000 shares to two new institutional investors, one of which the company described as a “preeminent global investment manager.” The transaction is expected to close around August 29, 2025, pending customary closing conditions.
Cognition, which focuses on developing therapies for neurodegenerative diseases, intends to use the proceeds to support preparation for Phase 3 trials of its zervimesine treatment, along with general corporate purposes and working capital needs.
Titan Partners Group, a division of American Capital Partners, is acting as the sole placement agent for the offering.
The sharp drop in Cognition’s share price reflects a common market reaction to equity offerings, which typically dilute existing shareholders’ stakes. Following the transaction, the company’s total share count will rise substantially with the addition of 14.7 million new shares.
Cognition Therapeutics stock price
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