Here's Why Organogenesis Fell as Much as 23.1% Today
Shares of Organogenesis (NASDAQ: ORGO) fell more than 23% today after the company announced the pricing of a public stock offering. The regenerative medicine company is offering up to 10.35 million shares priced at $5 apiece, which is expected to raise up to $51.75 million in gross proceeds.
The business ended September with $22.9 million in cash and reported cash outflow from operations of $27 million during the first nine months of 2019. However, Organogenesis also sharply improved operating losses in that span compared to the year-ago period thanks to a 66% increase in gross profit. The cash injection will help to further improve the company's operations and nudge it toward profitability.
As of 12:38 p.m. EST, the pharma stock had settled to a 22.4% loss.
Source Fool.com
