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Outlook Therapeutics, Inc. (OTLK) Stock Drops After Increasing Previously Announced Bought Deal Offering

Wednesday, November 24, 2021 09:16 AM | Kyle Depontes
Outlook Therapeutics, Inc. (OTLK) Stock Drops After Increasing Previously Announced Bought Deal Offering

What is going on with OTLK?

Outlook Therapeutics (OTLK) stock fell today after the company announced that, due to demand, the underwriter has agreed to increase the size of its previously announced public offering and purchase an additional 40 million OTLK shares at a price of $1.25 per share.

Outlook has 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.

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

Shares of OTLK declined 22.34% to $1.21 as of Wednesday at 9:01 am.

What does this mean for Outlook Therapeutics?

A bought deal is a type of offering in which the underwriter commits to buy the entire offering from the issuer company before a prospectus is filed.

While a bought deal eliminates the financing risk faced by the issuer company, the underwriter can negotiate a discounted price for the entire offering.

In this case, GMS Ventures and Investments, an affiliate of Outlook Therapeutics’ largest stockholder and strategic partner, BioLexis Pte. Ltd., has indicated an interest in purchasing up to $20 million of the stock issued in the offering.

GMS' interest in purchasing shares has led to a higher demand than usual in the offering, leading the underwriter to increase the offering size.

Outlook Therapeutics will net around $50 million from the offering, which it will use "to support its ONS-5010 development program."

Fundamental Score - 79

OTLK has a Fundamental Rank of 79. Find out what this means to you and get the rest of the rankings on OTLK!

Outlook Therapeutics Inc is a clinical-stage biopharmaceutical company focused on developing and commercializing ONS-5010, a monoclonal antibody, or mAb, for various ophthalmic indications.

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