Why Ocugen Stock Flopped on Friday

Coronavirus stock Ocugen (NASDAQ: OCGN) didn't end the week on a high note. Shares of the biotech took a more than 4% tumble on Friday on the back of financing news that didn't please investors.

Ocugen divulged in a pair of regulatory filings that it will sell up to $160 million worth of its common stock in an at-the-market (ATM) public offering. This follows the company's original disclosure in late March that it would be launching a new ATM; at the time, the amount was not specified.

In the original prospectus on the issue, Ocugen said it would use the proceeds for "general corporate purposes," a common catchall term frequently used by companies floating new stock. The biotech added that these purposes could be research and development activities and clinical trials, among other items.

Source Fool.com