Outlook Therapeutics (OTLK) Stock: Why The Price Dropped Today

By Amit Chowdhry ● Nov 24, 2021
  • The stock price of Outlook Therapeutics Inc (NASDAQ: OTLK) fell by over 20% pre-market today. This is why it happened.

The stock price of Outlook Therapeutics Inc (NASDAQ: OTLK) – a late clinical-stage biopharmaceutical company working to develop and launch the first FDA-approved ophthalmic formulation of bevacizumab-vikg for use in retinal indications – fell by over 20% pre-market today. Investors are responding negatively to the company announcing that due to demand, the underwriter agreed to increase the size of the previously announced public offering and purchase on a firm commitment basis 40 million shares of common stock of Outlook Therapeutics at a price to the public of $1.25 per share, less underwriting discounts and commissions. The closing of the offering is expected to happen on or about November 29, 2021, subject to satisfaction of customary closing conditions.

Outlook Therapeutics was also granted to the underwriter a 30-day option to purchase up to an additional 6 million shares of common stock at the public offering price, less underwriting discounts and commissions. And the gross proceeds to Outlook Therapeutics, before deducting underwriting discounts and commissions and offering expenses and assuming no exercise of the underwriter’s option to purchase additional common stock, are expected to be $50 million.

GMS Ventures and Investments, an affiliate of Outlook Therapeutics’ largest stockholder and strategic partner BioLexis Pte. Ltd. has indicated an interest in purchasing directly or through an affiliate up to $20 million of the shares of common stock offered in the offering at the public offering price per share.

Outlook Therapeutics plans to use the net proceeds from the offering for working capital and general corporate purposes, including in support of its ONS-5010 development program.

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.