Genenta Science SpA (NASDAQ:GNTA) shares sank 42% on Monday after the clinical-stage biotech company unveiled a new stock offering that will significantly dilute existing shareholders.
The firm said it has signed a securities purchase agreement with institutional investors to sell 4,285,715 American Depositary Shares at $3.50 per ADS, aiming to raise roughly $15 million in gross proceeds before deducting fees and expenses.
Maxim Group LLC is acting as lead placement agent for the deal, while Rodman & Renshaw LLC is serving as co-placement agent. The transaction is expected to close on or around October 28, 2025, pending customary closing conditions.
Genenta said it plans to use the proceeds for general corporate purposes and working capital. No warrants or other derivative securities were issued as part of the deal.
The steep drop in the company’s share price underscores investor unease over dilution, as the new shares are being offered at a steep discount to recent market levels.