NervGen Prices $60M Public Offering at $2.50/Share, Securing Critical Funding
NGEN is trading near its 52-week low of $3.51 (20% below the low) on elevated volume (3.4× avg).
Summary
NervGen Pharma has priced its US$60.0 million public offering of common shares and warrants, with shares sold at $2.50 each. This offering, which is highly dilutive at roughly 20% of the company's market cap, follows yesterday's announcement of the proposed offering. It provides critical funding for the company's operations and the advancement of its NVG-291 clinical program, especially important given recent 'going concern' warnings and limited cash reserves. The pricing at a discount to the current market price will likely exert downward pressure on the stock.
At the time of this announcement, NGEN was trading at $2.81 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $297.8M. The 52-week trading range was $3.51 to $6.30. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.