Ocugen (OCGN) Shares Slide Following Merger Agreement: What's Going On?

Shares of Ocugen Inc (NASDAQ:OCGN) are trading lower by more than 8% Monday afternoon. The company earlier announced a definitive agreement to merge its subsidiary OrthoCellix with Carisma Therapeutics in an all-stock deal.

What To Know: Under the agreement signed June 22, OrthoCellix, holder of Ocugen's NeoCart regenerative medicine assets, will merge with a Carisma subsidiary, becoming a wholly owned subsidiary of Carisma.

The transaction values OrthoCellix at $135 million and Carisma at $15 million, with Ocugen and its investors expected to own 90% of the combined entity post-merger, assuming a $25 million investment. Carisma shareholders will retain 10%. The ownership stakes are subject to change depending on Carisma's cash position at closing.

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The merged company's board will include five directors from OrthoCellix and one from Carisma. Pre-merger Carisma shareholders will also receive contingent value rights tied to future proceeds from legacy assets and partnerships, including Carisma's agreement with Moderna.

The deal includes standard closing conditions and investor protections, such as lock-up agreements and support agreements from key stakeholders.

The companies aim to complete the merger following shareholder approvals, Nasdaq listing compliance, and SEC registration effectiveness. A $5 million investment from Ocugen is expected to support the merger's close.

According to data from Benzinga Pro, Ocugen has a 52-week high of $1.98 and a 52-week low of 52 cents. The stock was down 8.29%, trading at approximately 97 cents at the time of publication.

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How To Buy OCGN Stock

By now you're likely curious about how to participate in the market for Ocugen – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.