Citing market conditions, Okyo Pharma Limited announced today that it is no longer moving forward with a recent public offering of shares.
Just last Friday, Okyo, an ophthalmology-focused UK-based biopharma company developing treatments for dry eye disease, announced a public share offering. As part of the offering, Okyo intended to grant the underwriter a 45-day option to purchase up to an additional 15% of shares to cover over-allotments, depending on market conditions.
The plan was to use the net proceeds generated from the offering to support the clinical development of Okyo's product candidates, general corporate purposes, and working capital needs.
Three days after the initial announcement, after receiving a Nasdaq deficiency letter for non-compliance, Okyo is saying its decision to withdraw the offering was prompted by shifts in market conditions and the company's dedication to prioritizing the welfare of its shareholders and stakeholders.
Okyo's lead asset, OK-101, is a novel long-acting drug for treating dry eye disease. It targets the ChemR23 receptor on eye immune cells, reducing inflammation and pain. The drug's design includes a lipid 'anchor' to enhance its effectiveness and prolong its action in the eye.