Ohr Pharmaceutical, Inc. (NASDAQ: OHRP) is watching its shares drop on Thursday after the company announced the pricing of a secondary offering. The company intends to price 3.875 million shares at $2 per share. There is also an interesting warrant option that comes with this offering. The company expects the total gross proceeds from this offering to be $7.75 million. Keep in mind the company has a market cap of roughly $62 million.
H.C. Wainwright is acting as exclusive placement agent for this offering.
Investors will also receive series A warrants to purchase up to an aggregate of 1,937,500 shares of common stock with an exercise price of $2.75 per share and series B warrants to purchase up to an aggregate of 3,875,000 shares of common stock with an exercise price of $3.00 per share.
[nativounit]
The series A warrants are immediately exercisable and have a term of five years and the series B warrants are immediately exercisable and have a term of six months. The offering is expected to close on or about December 13, subject to satisfaction of customary closing conditions.
Ohr Pharma is an ophthalmology research and development company. The company’s lead drug candidate, Squalamine lactate ophthalmic solution, 0.2% (OHR-102), is currently being evaluated in combination with anti-VEGF injections in a Phase 3 clinical program for the treatment of the wet form of age-related macular degeneration.
The company intends to use the net proceeds from this offering for working capital and other general corporate purposes, including Phase 3 clinical trials of Squalamine.
Shares of Ohr were last trading down about 24% at $1.92, with a consensus analyst price target of $9.33 and a 52-week trading range of $1.80 to $6.56.
[wallst_email_signup]
Top Gaining Stocks
Top Losing Stocks