OKYO Pharma Limited (NASDAQ:OKYO) saw its stock fall 24% in Friday’s premarket trading after the company disclosed a public offering of its ordinary shares designed to raise roughly $20 million in gross proceeds.
According to a regulatory filing, OKYO entered into an underwriting agreement with Piper Sandler & Co. for the sale of 10,815,000 ordinary shares priced at $1.85 apiece. The agreement includes a 30-day option that allows the underwriter to buy up to an additional 1,622,250 ordinary shares at the same per-share price.
The company estimates the offering will generate about $20 million in gross proceeds before accounting for underwriting discounts, commissions, and other offering-related expenses. The transaction is scheduled to close on February 17, 2026, subject to customary closing conditions described in the filing.
OKYO said it intends to apply the net proceeds from the offering to advance the clinical development of its product candidates and to fund general corporate purposes and working capital.
The shares are being offered under OKYO’s effective registration statement on Form F-3, which the Securities and Exchange Commission declared effective on February 10, 2026, according to the filing.
Market participants often react negatively to public offerings because the issuance of additional shares can dilute existing ownership stakes and place downward pressure on share prices. In this instance, the company’s announcement was followed by a pronounced premarket decline of 24%, reflecting that typical market response.
Summary
OKYO Pharma announced a $20 million public offering of 10,815,000 ordinary shares at $1.85 per share with Piper Sandler & Co. The underwriting arrangement contains a 30-day option for up to 1,622,250 additional shares at the same price. The offering is expected to close on February 17, 2026, subject to customary closing conditions, and will be conducted under a Form F-3 registration statement that was declared effective by the SEC on February 10, 2026. Net proceeds will support clinical development, general corporate purposes, and working capital. The stock dropped 24% in Friday’s premarket trading following the announcement.
Key points
- Offering size and price: 10,815,000 shares at $1.85 per share, targeting about $20 million in gross proceeds before fees and expenses.
- Underwriting option: Piper Sandler has a 30-day option to purchase up to 1,622,250 additional shares at $1.85 per share.
- Use of proceeds and timeline: Net proceeds intended for clinical development and corporate needs; expected closing on February 17, 2026, subject to customary closing conditions.
Risks and uncertainties
- Share dilution - The issuance of additional shares, including any exercised option, could dilute existing shareholders’ ownership stakes and may exert downward pressure on the stock price.
- Closing conditions - The offering’s completion is subject to customary closing conditions, introducing uncertainty about whether the transaction will close as expected by February 17, 2026.
- Transaction expenses - Gross proceeds are stated before underwriting discounts, commissions, and other expenses, so net proceeds available for stated uses will be lower than the headline figure of approximately $20 million.