Why Ocera Therapeutics (OCRX) Stock Is Plunging Today

NEW YORK (TheStreet) -- Ocera Therapeutics  (OCRX) plunged Thursday after the company priced its secondary offering of 4.2 million shares of common stock at $6 a share.

The offering will raise gross proceeds of $25.2 million before deduction of the underwriting discount and other offering expenses, Ocera said in a statement. The offering includes a 30-day option for underwriters to purchase up to 630,000 additional shares of common stock, which would result in additional gross proceeds of $3.78 million if fully exercised.

The stock was down 16.69% to $5.94 at 3:38 p.m. More than 1.1 million shares changed hands, which dwarfed the average volume of 46,163.

Must Read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%