Ocugen, Inc. Announces Closing of $35 Million Public Offering of Common Stock

Rhea-AI Summary

Ocugen, Inc. (Nasdaq: OCGN), a biotechnology company focusing on gene and cell therapies and vaccines, has closed its public offering of 30,434,783 common stock shares at $1.15 per share. The offering, led by a premier mutual fund and prominent life sciences investors, raised approximately $35 million in gross proceeds. Titan Partners Group, a division of American Capital Partners, acted as the sole book-running manager.

The company plans to use the net proceeds for general corporate purposes, capital expenditures, working capital, and general and administrative expenses. The offering was made pursuant to a previously filed and effective shelf registration statement on Form S-3.

Positive

• Successfully raised $35 million in gross proceeds
• Participation from premier mutual fund and leading life sciences investors
• Funds to be used for general corporate purposes and working capital

Negative

• Potential dilution of existing shareholders' ownership
• Offering price of $1.15 per share may indicate market valuation concerns

Financial Analyst

Ocugen's $35 million public offering is a significant capital raise, bolstering its financial position. At $1.15 per share, the 30,434,783 new shares represent substantial dilution for existing shareholders. This cash infusion should extend Ocugen's runway, important for a biotech company with ongoing R&D expenses. However, the pricing below recent trading levels suggests investor caution.

The participation of a premier mutual fund and leading life sciences investors lends credibility to Ocugen's prospects. The broad intended use of proceeds for "general corporate purposes" provides flexibility but lacks specificity on strategic initiatives. Investors should monitor how effectively management deploys this capital to advance its pipeline and create shareholder value.

Biotech Industry Expert

This capital raise is a double-edged sword for Ocugen. While it provides essential funding for their gene and cell therapy programs, it also highlights the cash-intensive nature of biotech R&D. The broad investor base, including a premier mutual fund, suggests confidence in Ocugen's potential, particularly in their novel therapies and vaccine candidates.

However, the lack of specificity in fund allocation raises questions about the company's immediate priorities. Investors should look for upcoming milestones in Ocugen's pipeline, especially in their ocular gene therapy programs and COVID-19 vaccine developments. The success of these initiatives will be important in justifying this dilution and driving future value.

Market Strategist

Ocugen's offering at $1.15 per share, below recent trading prices, indicates a challenging capital-raising environment for biotech firms. This 30.4% increase in outstanding shares is significant dilution, which could pressure the stock price short-term. However, the successful close of the offering, especially with notable institutional participation, demonstrates investor appetite for Ocugen's potential.

The timing of this raise, following the effectiveness of their S-3 filing, suggests proactive financial management. Investors should watch for potential catalysts, such as clinical trial results or regulatory decisions, that could justify this capital raise and potentially drive the stock price. The market's reaction in the coming weeks will be telling of investor sentiment towards Ocugen's long-term prospects.

MALVERN, Pa., Aug. 02, 2024 (GLOBE NEWSWIRE) -- Ocugen, Inc. (Nasdaq: OCGN), a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies and vaccines, today announced the closing of its previously announced underwritten public offering of 30,434,783 shares of its common stock. Each share of common stock was sold at a price to the public of $1.15 per share. The gross proceeds to the Company from the offering were approximately $35 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for general corporate purposes, capital expenditures, working capital, and general and administrative expenses. The offering was led by a premier mutual fund, along with participation from leading life sciences investors.

Titan Partners Group, a division of American Capital Partners, acted as sole book-running manager for the offering.

The offering is being made by Ocugen pursuant to a shelf registration statement on Form S-3 (File No. 333-278774) previously filed with the Securities and Exchange Commission (the “SEC”) on April 18, 2024, which became effective on May 1, 2024. A final prospectus supplement and the accompanying base prospectus relating to and describing the terms of the offering were filed with the SEC. Electronic copies of the final prospectus supplement and the accompanying base prospectus relating to the offering, may be obtained by visiting the SEC’s website at www.sec.gov or by contacting Titan Partners Group, LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 29th Floor, New York, New York 10007, by phone at (929) 833-1246 or by email at prospectus@titanpartnersgrp.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Ocugen, Inc.

Ocugen, Inc. is a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies and vaccines that improve health and offer hope for patients across the globe. We are making an impact on patient’s lives through courageous innovation—forging new scientific paths that harness our unique intellectual and human capital. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with a single product, and we are advancing research in infectious diseases to support public health and orthopedic diseases to address unmet medical needs.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. Such forward-looking statements within this press release include, without limitation, statements regarding Ocugen’s expectations regarding the anticipated use of proceeds. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from our current expectations, such as market and other conditions. These and other risks and uncertainties are more fully described in our periodic filings with the SEC, including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by applicable law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, after the date of this press release.

Ocugen Contact:	Titan Partners Contact:
Tiffany Hamilton	(929) 833-1246
Head of Communications	prospectus@titanpartnersgrp.com
Tiffany.Hamilton@Ocugen.com

FAQ

How much did Ocugen (OCGN) raise in its recent public offering?

Ocugen (OCGN) raised approximately $35 million in gross proceeds from its recent public offering of common stock.

What was the price per share for Ocugen's (OCGN) public offering on August 2, 2024?

The price per share for Ocugen's (OCGN) public offering was $1.15.

How many shares did Ocugen (OCGN) sell in its August 2024 public offering?

Ocugen (OCGN) sold 30,434,783 shares of its common stock in the August 2024 public offering.

What will Ocugen (OCGN) use the proceeds from its 2024 public offering for?

Ocugen (OCGN) intends to use the net proceeds for general corporate purposes, capital expenditures, working capital, and general and administrative expenses.