By Devika Patel
Knoxville, Tenn., Jan. 10 – Oncobiologics, Inc. said it settled a $10 million private placement of senior secured promissory notes. The notes were sold in tranches, with $8.35 million sold in the first tranche on Dec. 22 and $1.65 million sold in the second and final tranche on Tuesday.
The note is due on Dec. 22, 2017 and accrues interest at 5% per year.
Investors also received warrants for 2.3 million shares, which are each exercisable at $3.00 for five years. The strike price reflects a 5.26% premium to the Jan. 9 closing share price of $2.85.
A portion of the proceeds from the sale of the notes will be used to pay off its existing senior secured bank loans, and the remainder will be used for working capital purposes.
Oncobiologics is a biopharmaceutical company is based in Cranbury, N.J.
| Issuer: | Oncobiologics, Inc.
|
| Issue: | Senior secured promissory notes
|
| Amount: | $10 million
|
| Maturity: | Dec. 22, 2017
|
| Coupon: | 5%
|
| Warrants: | For 2.3 million shares (1,920,500 shares with first tranche, 379,500 shares with the second)
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.00
|
| Pricing date: | Dec. 22
|
| Settlement dates: | Dec. 22 (for $8.35 million), Jan. 10 (for $1.65 million)
|
| Distribution: | Private placement
|
| Stock symbol: | Nasdaq: ONS
|
| Stock price: | $2.85 at close Jan. 9
|
| Market capitalization: | $64.83 million
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
