CollPlant shares fall 41.01% intraday after announcing $2 million stock offering and private placement.

CollPlant Biotechnologies (NASDAQ: CLGN) plummeted 41.01% intraday following its announcement of a registered direct offering and private placement to raise approximately $2.0 million. The company issued 1.6 million ordinary shares at $1.25 each and warrants to purchase an additional 3.2 million shares, with proceeds intended for general corporate purposes, including R&D. The transaction, which includes unregistered warrants exercisable at $1.25, likely triggered immediate selling pressure due to perceived equity dilution and raised concerns about capital-raising strategies in a biotech firm with a history of losses. The offering’s execution during active trading hours exacerbated the intraday decline, as investors reacted to the dilutive impact and the company’s reliance on equity financing to fund operations.