The registered direct raise injects ≈ $30 million into Cognition’s balance sheet in exchange for 14.7 million new common shares at $2.05 each. Assuming the company’s pre‑offering float is roughly 70 million shares (the figure reported in recent SEC filings), the issuance adds about 21 % to the share count. All‑else‑equal that translates into an immediate, roughly 21 % dilution of existing shareholders’ stake and a proportional reduction in current earnings‑per‑share (EPS). If Cognition were to generate $5 million of net income this year, the pre‑offering EPS would have been $0.071; after the raise it would fall to about $0.056, a 21 % decrease.
The real impact on EPS, however, hinges on how the proceeds are deployed. Management has earmarked the cash for the Phase 3 trial of Zervimesine (CT1812) and related R&D, which could unlock sizable revenues if the product reaches approval and market launch. Successful Phase 3 results would likely lift top‑line sales dramatically, more than offsetting the share‑count expansion and ultimately driving a higher forward‑looking EPS. In the interim, investors should expect short‑term price pressure as the market digests the dilution; the $2.05 pricing is modestly below recent trading levels, creating a technical support zone around the $2.00‑$2.10 range. Traders might look for a brief pull‑back or increased volatility, but keep a long‑run bias bullish if the company can sustain its R&D timeline and demonstrate clear clinical milestones.