Onconetix Shares Plunge 22.52% Amid Dilutive Merger

Onconetix(ONCO) shares plummeted by 22.52% today, marking the second consecutive day of decline, with a total drop of 27.33% over the past two days. The stock price hit its lowest level since June 2025, experiencing an intraday decline of 30.24%.

The recent decline in Onconetix's stock price is primarily due to the merger with Ocuvex Therapeutics. Under the merger terms, Ocuvex gains a 90% ownership stake in the combined entity, significantly diluting existing Onconetix shareholders to just 10%. This shift in equity control has led to substantial legal scrutiny and market uncertainty, causing the stock to plummet by over 20%.

The merger is seen as transformative but highly dilutive, contributing to financial difficulties for Onconetix shareholders. The significant dilution of shares has raised concerns among investors about the future prospects of the company. The legal scrutiny surrounding the merger has added to the market's uncertainty, further impacting the stock price.