Oragenics Stock Drops 58% on $20M Convertible Preferred Offering

Oragenics Inc. announced a public offering to raise approximately $20 million by selling up to 800,000 shares of Series H Convertible Preferred Stock and accompanying warrants priced at $25 per unit. The preferred stock is convertible into common shares at $2.50 per share, a move intended to fund ongoing clinical trials for its ONP-2 concussion treatment, support research and development, repay a $3 million bridge note, and cover general corporate expenses. The announcement triggered a sharp decline in Oragenics' stock price, plunging by as much as 58%, reflecting investor concerns about potential dilution and market volatility surrounding high-risk fundraising strategies. Despite the stock drop, there was a notable surge in premarket trading, and some Wall Street analysts remain optimistic, with a price target suggesting significant upside potential. Dawson James Securities is the sole placement agent, and the offering is expected to close around July 2, 2025, subject to customary conditions. This capital raise highlights Oragenics' strategic pivot toward developing intranasal pharmaceuticals for neurological disorders amid challenging financial and market conditions.