On February 12, 2026, OKYO Pharma Ltd. priced an underwritten public offering of 10,815,000 ordinary shares at $1.85 per share, generating approximately $20 million in gross proceeds. The underwriter received a 30‑day option to purchase an additional 1,622,250 shares at the same price, which could raise gross proceeds to about $23 million if exercised.
The company will use the net proceeds primarily to fund the clinical development of its lead candidate urcosimod, support general corporate purposes, and provide working capital. The financing follows the completion of a Phase 2 trial of urcosimod for neuropathic corneal pain and the planned initiation of a 150‑subject Phase 2b/3 multiple‑dose study in the first half of the year.
The market reacted negatively to the announcement, with investors expressing concerns about dilution from the new share issuance. This reaction is typical for companies raising capital through equity, especially when the proceeds are earmarked for future clinical development.
Strategically, the offering is critical for advancing urcosimod, a first‑in‑class therapy in a niche market with no approved treatments for neuropathic corneal pain. FDA feedback on the Phase 2b/3 trial design has de‑risked the regulatory pathway, underscoring the importance of the capital raised to support the study and potential future approvals.
CEO Robert Dempsey said, "We are delighted to have our proof‑concept Phase 2 data on urcosimod accepted for presentation at the prestigious 2026 ASCRS Annual Meeting. This recognition underscores the potential of urcosimod as a novel, first‑in‑class therapeutic for neuropathic corneal pain, a debilitating condition affecting patients with significant unmet need." Chief Financial Officer Keeren Shah added, "We are excited to partner with Leerink Partners to establish this new ATM facility. Leerink's deep expertise in the biotech sector, proven track record in the ATM programs, and strong relationships in the investor community make them an ideal partner as we advance our pipeline, including our lead candidate urcosimod for neuropathic corneal pain. This transition enhances our financial flexibility to support ongoing clinical development and corporate objectives without committing to a fixed equity raise."
The offering is expected to close on or about February 17, 2026, subject to customary closing conditions.
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