By Rebecca Melvin
New York, Feb. 6 – Oncothyreon Inc. priced about $2 million of series B convertible preferred stock, or 1,333 shares at $1,500 per share, concurrently with about $20 million of common stock, or 13.5 million shares at $1.50 each, according to a news release.
Jefferies LLC was bookrunner of the separate offerings.
The preferreds convert into common stock at a ratio of 1,000 shares per preferred, for a conversion price of $1.50 per share, the same price that the common stock was sold at.
Conversion is prohibited if it would lead to the holder owning more than 4.99% of the company’s common stock.
Proceeds will be used to fund development of its therapeutic products, including ONT-380, ONT-10, its small molecule Chk1 program and its protocell technology as well as for general corporate purposes, including other discovery or preclinical research and product development.
A portion of the proceeds will be used to acquire or license new product candidates or technology that could result in other product candidates.
Oncothyreon priced $20 million of series A convertible preferred stock, or 10,000 shares at $2,000 each, in a private offering in September.
Oncothyreon is a Seattle-based biotechnology company.
| Issuer: | Oncothyreon Inc.
|
| Issue: | Series B convertible preferred shares
|
| Amount: | $2 million, or 1,333 preferred shares
|
| Concurrent offering: | $20 million of common stock
|
| Bookrunner: | Jefferies LLC
|
| Price: | Par, $1,500 per share
|
| Conversion price: | $1.50
|
| Conversion ratio: 1,000
|
| Pricing date: | Feb. 5
|
| Settlement date: | Feb. 11
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: ONTY
|
| Stock reference price: | $1.50
|
| Stock price: | $1.57 as of close Feb. 5
|
| Market capitalization: | $137.3 million
|
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