By Abigail W. Adams
Portland, Me., April 30 – Onconova Therapeutics plans to price 46,588,234 units containing one share of common stock and one warrant to purchase 0.025 share of series B convertible preferred stock at a public offering price of 42.5 cents, according to a 424B4 filing with the Securities and Exchange Commission.
H.C. Wainwright & Co. is the sole bookrunner for the offering. The offering carries a greenshoe of 8,823,529 shares of common stock and warrants to purchase up to 220,588.225 shares of series B preferred stock.
Onconova is also offering 12,235,295 pre-funded units at a public offering price of 41.5 cents to purchasers who would otherwise own more than 4.99% of common stock after participation in the offering.
The pre-funded units contain one pre-funded warrant to purchase one share of common stock and one warrant to purchase 0.025 share of series B preferred stock.
There are 1,470,588.225 shares of series B convertible preferred stock underlying the warrants. Each 0.025 share of series B preferred stock is convertible into one share of common stock.
The warrants carry a strike price of 42.5 cents.
Conversion of the series B convertible preferred stock is contingent on shareholder approval of an amendment to Onconova’s certificate of incorporation to increase the number of authorized shares to cover the conversion of the outstanding shares of series B preferred stock.
The total public offering price is $24,877.647.
Net proceeds are expected to be $22.2 million assuming all pre-funded warrants are sold. Proceeds will be used to fund the development of clinical and preclinical programs, research and development activities, and for general corporate purposes.
Onconova Therapeutics is a Newtown, Penn.-based clinical-stage biopharmaceutical company focused on developing cancer treatments.
| Issuer: | Onconova Therapeutics Inc.
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| Price: | $24,877.647
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| Pricing date: | April 30
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| Bookrunner: | H.C. Wainwright & Co.
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| Stock symbol: | Nasdaq: ONTX
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| Stock price: | 39 cents at market close April 27
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| Market capitalization: | $7.74 million
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| Units
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| Securities: | Units containing one share of common stock and one warrant to purchase 0.025 shares of series B convertible preferred stock
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| Amount: | 46,588,234 units
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| Greenshoe: | 8,823,529 shares and warrants to purchase up to 220,588.225 series B convertible preferred stock
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| Warrant Expiration: | Eighteen months from the charter amendment date
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| Price: | 42.5 cents
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| Warrant strike price | 42.5 cents
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| Conversion rate: | 0.025 share of series B convertible preferred stock is convertible into one common share
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| Pre-funded units
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| Issuer: | Onconova Therapeutics Inc.
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| Securities: | Pre-funded units containing one pre-funded warrant to purchase one share of common stock and one warrant to purchase 0.025 shares of series B convertible preferred stock
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| Amount: | 12,235,295 pre-funded units
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| Warrant Expiration: | Eighteen months from the charter amendment date
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| Price: | 41.5 cents
|
| Warrant strike price | 42.5 cents
|
| Conversion rate: | 0.025 share of series B convertible preferred stock is convertible into one common share
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