NEW YORK (TheStreet) -- Ocata Therapeutics (OCAT - Get Report) shares are down 14.93% to $5.30 in trading on Wednesday after the biopharmaceutical company priced the secondary offering of 5.5 million shares with accompanying warrants to purchase an additional 2.75 million shares at $5.50 per share.
The warrants will be exercisable at $7.48 per share beginning December 22, 2015 and will expire on December 22, 2020.
Underwriters will be granted a 30-day option to purchase up to an additional 825,000 shares.
The company expects gross proceeds to be $30.25 million with net proceeds to be used to fund its clinical activities and general corporate purposes.
TheStreet Ratings team rates OCATA THERAPEUTICS INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate OCATA THERAPEUTICS INC (OCAT) a SELL. This is based on the dominance of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and feeble growth in its earnings per share."