Benzinga | May 5, 2021 06:38AM EDT

Cocrystal Pharma Shares Plunge On $40M Equity Raise At 28% Discount

* Cocrystal Pharma Inc (NASDAQ: COCP) has entered into an underwriting agreement with H.C. Wainwright & Co LLC, under which the underwriter has agreed to purchase 26 million shares at $1.54 per share.

* The offer price is at a 28% discount from the last close price of $2.14 and is expected to close by May 7.

* Cocrystal will use the gross proceeds of approximately $40 million to expand its COVID-19 and Influenza treatment development programs, general corporate purposes, and working capital.

* Earlier this week, the company announced positive preclinical data on the CDI-45205 COVID-19 candidate, launch a second COVID-19 program with additional antiviral compounds for development.

* Yesterday, H.C. Wainwright analyst Raghuram Selvaraju reiterated a Buy rating and a $4.50 per share price target.

* Price Action: COCP shares dropped 24.8% to $1.61 in the premarket session on the last check Wednesday.