OmniAb Shares Tumble on $30 Million Stock Placement News
The antibody discovery firm's stock fell over 9% after announcing a private placement that will dilute existing shareholders.
Shares of OmniAb Inc. (NASDAQ:OABI) plunged 9.2% in premarket trading on Monday after the company announced a plan to raise approximately $30 million through a private placement of its common stock.
The biotechnology firm, which specializes in antibody discovery technology, entered into a definitive agreement to sell over 21.25 million shares. The bulk of the shares will be sold to new and existing investors at a price of $1.40 per share, a discount to the stock's recent trading levels. A portion of the placement will see the company's own officers and directors participate at a higher price of $1.85 per share.
The negative market reaction was primarily driven by the dilutive effect of the offering, which will significantly increase the number of shares outstanding. Such placements can diminish the value of existing shares, and the discounted offering price often puts immediate downward pressure on the stock.
OmniAb stated that the net proceeds from the financing, which is expected to close around August 26, 2025, will be used for "general corporate purposes." The company did not provide more specific details on its planned use of the capital. Leerink Partners is serving as the sole placement agent for the transaction.
The shares sold in the private placement have not been registered under the Securities Act of 1933. However, OmniAb has agreed to file a registration statement with the Securities and Exchange Commission to permit the resale of these shares by the investors.