NEWTOWN, Pa., April 27, 2018 (GLOBE NEWSWIRE) -- Onconova Therapeutics, Inc. (NASDAQ:ONTX), a Phase 3 stage biopharmaceutical company focused on discovering and developing small molecule drug candidates to treat cancer, with a primary focus on Myelodysplastic Syndromes (MDS), today announced the pricing of an underwritten public offering of 58,823,529 shares of its common stock and warrants to purchase up to an aggregate of 1,470,588.225 shares of Onconova’s Series B convertible preferred stock at a public offering price of $0.425 per share and accompanying Preferred Stock Warrant. The gross proceeds of the Offering are expected to be approximately $25.0 million, or approximately $28.75 million if the underwriter exercises its option to purchase additional securities in full, prior to deducting underwriting discounts and commissions and estimated offering expenses. In addition, in the event the underwriter exercises its option to purchase additional securities in full and the Preferred Stock Warrants are exercised in full, Onconova expects to receive approximately $28.75 million in additional proceeds. However, there is no assurance that all or a portion of the Preferred Stock Warrants will be exercised prior to their expiration. This Offering is expected to close on or about May 1, 2018, subject to customary closing conditions.
H.C. Wainwright & Co. is acting as the sole book-running manager for the Offering.
Onconova has granted the underwriter a 30-day option to purchase up to 8,823,529 additional shares of Common Stock and/or Preferred Stock Warrants to purchase up to an aggregate of 220,588.225 shares of Series B Preferred Stock, at the public offering price, less underwriting discounts and commissions.
The Preferred Stock Warrants will be exercisable immediately at an exercise price of $0.425 per 0.025 share of Series B Preferred Stock (convertible into one share of Common Stock) and will expire on the 18-month anniversary of the date on which we publicly announce through the filing of a Current Report on Form 8-K that an amendment to the Company’s certificate of incorporation to increase the Company’s authorized shares of Common Stock has been filed with the Secretary of State of the State of Delaware. The shares of Common Stock (or Common Stock equivalent) and the accompanying Preferred Stock Warrants can only be purchased together in this Offering but will be issued separately.
Onconova intends to use the net proceeds from this Offering to fund the development of its clinical and preclinical programs, for other research and development activities and for general corporate purposes, which may include capital expenditures and funding working capital needs.
About Onconova Therapeutics, Inc.
Onconova Therapeutics, Inc. is a Phase 3-stage biopharmaceutical company focused on discovering and developing novel small molecule drug candidates to treat cancer, with a primary focus on Myelodysplastic Syndromes (MDS). Rigosertib, Onconova’s lead candidate, is a proprietary Phase 3 small molecule agent, which we believe blocks cellular signaling by targeting RAS effector pathways. Using a proprietary chemistry platform, Onconova has created a pipeline of targeted agents designed to work against specific cellular pathways that are important in cancer cells. Onconova has three product candidates in the clinical stage and several pre-clinical programs. Advanced clinical trials with Onconova’s lead compound, rigosertib, are aimed at what Onconova believes are unmet medical needs of patients with MDS. For more information, please visit http://www.onconova.com.
