Malvern-based Ocugen’s stock increased nearly 201 percent after announcing its plans for a direct stock offering worth $23 million, writes John George for the Philadelphia Business Journal.

Ocugen entered into a definitive agreement with three healthcare-focused institutional investors for the sale of three million shares in its common stock at $7.65 per share. The company has not named the investors.

The offering was priced 27 percent above the company’s stock price at the time, which was at $5.25. The premium that is being paid by the investors drove a surge, which bumped the company’s stock up by 201 percent. In fact, it closed at $15.81 per share on Monday, the day of the announcement.

Ocugen will use proceeds from the stock sale for general corporate purposes, capital expenditures, and working capital, as well as general and administrative expenses.

The enthusiasm for Ocugen’s shares might have been in part been driven by the recent finalization of the deal to develop the COVID-19 vaccine that is being created by Bharat Biotech of India for the U.S. market.

Read more about Ocugen in the Philadelphia Business Journal here.