Oculus Innovative Sciences Plummets Nearly 30% Following Stock Offering Announcement

Oculus Innovative Sciences, Inc. (NASDAQ: OCLS) fell nearly 30 percent Wednesday following an announcement that it will make a $6.3 million public stock offering.

According to the company’s press release, it will offer 6,250,000 shares of common stock, and warrants to purchase an aggregate of 4,687,500 shares of common stock, at a price of $1.00 per share and related warrant.

The warrants have an exercise price of $1.30 per share, and are exercisable for a period of five years beginning January 21, 2015. The offering was upsized from 5,750,000 shares.

The company intends to use the net proceeds to increase its direct sales force, develop and launch new products, and for general working capital.

Street coverage on Oculus Innovative Sciences is very thin. In June 2014, Sidoti & Co. downgraded the stock from Buy to Neutral.

The offering is expected to close on or about January 26, 2015.

Oculus Innovative Sciences recently traded at $0.823, down 27.8 percent.