NervGen Pharma tumbles on deep-discounted $60 mln equity raise

Toronto-Dominion Bank

22/05/2026 10:51

** NervGen Pharma NGEN.O shares tumble 29.3% premarket to $2.60, a six-month low, after $60 mln follow-on priced at steep discount

** Canadian biotech late Thurs sold 24 mln shares with warrants to buy up to 24 mln shares at $2.50, a 32% discount to last sale

** The 5-yr warrants are exercisable immediately with exercise price of $3.68

** NGEN has ~82.2 mln shares outstanding, per LSEG data

** Co intends to use net offering proceeds to fund advancement of its spinal cord injury drug, NVG-291, through clinical studies and for general corporate and working capital purposes

** Leerink and TD Cowen joint bookrunners

** Through Thurs, NGEN shares lost 34% YTD

** All 7 analysts rate the stock "buy"; median PT $8.20

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))