Onconova Therapeutics Announces $16.5M Share Purchase Agreement With Lincoln Park Capital Fund
October 08 2015 - 4:55PM
Onconova Therapeutics, Inc. (NASDAQ:ONTX), a clinical-stage
biopharmaceutical company focused on discovering and developing
novel products to treat cancer, today announced that the Company
has entered into a share purchase agreement and a registration
rights agreement (“Agreements”) with Lincoln Park Capital Fund, LLC
(“LPC”). Upon signing the Agreements, LPC made an initial
purchase of 846,755 shares of the Company’s common stock for
$1,500,000. Under the terms and subject to the conditions of the
Agreements, the Company has the right to sell to, and LPC is
obligated to purchase, up to an additional $15,000,000 in amounts
of shares of the Company’s common stock, subject to certain
limitations, from time to time, over the 36-month period commencing
on the date that a registration statement, which the Company agreed
to file with the Securities and Exchange Commission, is declared
effective and a final prospectus is filed. In consideration for
entering into the Agreements, Onconova has issued common shares to
LPC as a commitment fee.
LPC cannot require any sales by the Company, but
is obligated to make purchases from Onconova as the Company
directs. Onconova has the right to terminate the Agreements
at any time, at no cost or penalty. LPC has covenanted not to cause
or engage in any manner whatsoever, any direct or indirect short
selling or hedging of the Company’s common stock.
The Company expects that any net proceeds
received from this offering will be used to support the clinical
development of rigosertib, as well as for general corporate
purposes and working capital requirements.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy any shares of common
stock, nor shall there be any sale of shares of common stock in any
state or jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or other jurisdiction.
About Onconova Therapeutics,
Inc.
Onconova Therapeutics is a Phase 3
clinical-stage biopharmaceutical company focused on discovering and
developing novel products to treat cancer. Onconova's clinical and
pre-clinical stage drug development candidates are derived from its
extensive chemical library and are designed to work against
specific cellular pathways that are important in cancer cells,
while causing minimal damage to normal cells. In addition to
rigosertib, the Company's most advanced product candidate, two
other candidates are clinical stage, and several candidates are in
pre-clinical stages. For more information, please
visit http://www.onconova.com.
About Lincoln Park Capital
Lincoln Park is an institutional investor headquartered in
Chicago, Illinois. Lincoln Park's experienced professionals manage
a portfolio of investments in public and private entities. These
investments are in a wide range of companies and industries
emphasizing life sciences, energy and technology. Lincoln Park's
investments range from multi-year financial commitments to fund
growth to special situation financings to long-term strategic
capital offering companies certainty, flexibility and consistency.
For more information, visit www.LincolnParkCapital.com.
Forward Looking Statements
Some of the statements in this release are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, Section 21E of the Securities
Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act of 1995, which involve risks and
uncertainties. These statements relate to future events or Onconova
Therapeutics, Inc.'s future operations, clinical development of
Onconova's product candidates and presentation of data with respect
thereto, regulatory approvals, expectations regarding the
sufficiency of Onconova's cash and other resources to fund
operating expenses and capital expenditures, Onconova's anticipated
milestones and future expectations and plans and prospects.
Although Onconova believes that the expectations reflected in such
forward-looking statements are reasonable as of the date made,
expectations may prove to have been materially different from the
results expressed or implied by such forward-looking statements.
Onconova has attempted to identify forward-looking statements by
terminology including “believes,” “estimates,” “anticipates,”
“expects,” “plans,” “intends,” “may,” “could,” “might,” “will,”
“should,” “approximately” or other words that convey uncertainty of
future events or outcomes. These statements are only predictions
and involve known and unknown risks, uncertainties, and other
factors, including Onconova’s need for additional financing and
current plans and future needs to scale back operations if adequate
financing is not obtained, the success and timing of Onconova’s
clinical trials and regulatory approval of protocols, and those
discussed under the heading “Risk Factors” in Onconova’s most
recent Annual Report on Form 10-K and quarterly reports on Form
10-Q.
Any forward-looking statements contained in this
release speak only as of its date. Onconova undertakes no
obligation to update any forward-looking statements contained in
this release to reflect events or circumstances occurring after its
date or to reflect the occurrence of unanticipated events.
CONTACT: Onconova Therapeutics
Lee Harnatkiewicz, 267-759-3680
lharnatkiewicz@onconova.us
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