NexGel shares surge 12.03% premarket as board cancels shareholder vote to authorize 1B share increase, eliminating dilution risk.

NexGel surged 12.03% in premarket trading following its announcement that the board canceled a special stockholder meeting to increase authorized shares from 25 million to 1 billion. The abrupt reversal of a highly dilutive proposal eliminated immediate concerns over massive equity expansion, which had previously signaled potential secondary offerings. By abandoning the plan, the company addressed investor fears of significant share dilution, improving short-term sentiment. While Q3 earnings missed estimates, the positive reaction centered on the revised capital strategy, which removes the near-term dilution risk and suggests a shift in financing approach.