Onconova Therapeutics, Inc. Announces Closing Of $5.0 Million Registered Direct Offering Priced At-The-Market
December 19 2019 - 1:44PM
Onconova Therapeutics, Inc. (NASDAQ: ONTX) (“Onconova” or the
“Company”), a Phase 3-stage biopharmaceutical company discovering
and developing novel products to treat cancer, with an initial
focus on myelodysplastic syndromes (MDS), today announced the
closing of its previously announced registered direct offering of
13,878,864 shares of its common stock and warrants to
purchase up to 6,939,432 shares of its common stock, at a combined
purchase price of $0.36026 per share and associated warrant, for
aggregate gross proceeds of approximately $5.0 million. The
registered direct offering priced at-the-market under Nasdaq rules.
H.C. Wainwright & Co. acted as the exclusive
placement agent for the offering.
The warrants issued in the offering have an
exercise price of $0.298 per share and exercise period commencing
immediately upon issuance and a term of five (5) years.
The Company intends to use the net proceeds from
the offering for working capital and general corporate purposes,
including advancing preparations for a planned New Drug Application
(NDA) filing to the FDA for intravenous rigosertib in second-line
higher-risk MDS in 2020. The Company surpassed 90% of the required
enrollment of the INSPIRE Trial in November 2019 and anticipates
reporting topline data in the first half of 2020, following full
enrollment and reaching the number of required survival events.
With the additional proceeds from the offering, the Company
believes that it has the sufficient funds to extend operations and
ongoing trials late into the fourth quarter of 2020.
Onconova was notified December 18, 2019, that
The Nasdaq Stock Market LLC (“Nasdaq”) staff has determined that
the Company has cured the previously reported stockholder’s equity
deficiency and regained compliance with the Nasdaq stockholders’
equity requirement for continued listing on The Nasdaq Capital
Market, based upon the Company’s recent financing transactions.
Accordingly, the previously announced Nasdaq Hearings Panel
scheduled for December 19, 2019 has been cancelled.
The securities described above were offered and
sold by the Company pursuant to a “shelf” registration statement on
Form S-3 (Registration No. 333-221684), including a base
prospectus, previously filed with and declared effective by the
Securities and Exchange Commission (the “SEC”) on December 28,
2017. The offering of the securities was made only by means of a
prospectus supplement that forms a part of the registration
statement. A final prospectus supplement and an accompanying base
prospectus relating to the registered direct offering was filed
with the SEC and is available on the SEC's website located at
http://www.sec.gov. Electronic copies of the prospectus supplement
and the accompanying base prospectus may also be obtained by
contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd
Floor, New York, NY 10022, by phone at 646-975-6996 or e-mail at
placements@hcwco.com.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Onconova Therapeutics,
Inc.
Onconova Therapeutics, Inc. is a Phase 3-stage
biopharmaceutical company discovering and developing novel small
molecule drug candidates to treat cancer, with an initial focus on
Myelodysplastic Syndromes (MDS). 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. Advanced clinical trials with the
Company’s lead compound, rigosertib, are aimed at what the Company
believes are unmet medical needs of patients with MDS. Onconova has
conducted trials with two other research compounds and has a
pre-clinical program with a CDK4/6 and Ark5 inhibitor, ON 123300.
For more information, please visit http://www.onconova.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, and involve risks and uncertainties.
These statements relate to Onconova expectations regarding the
intended use of proceeds and Onconova’s ability to maintain its
Nasdaq listing, as well as statements relate to Onconova
expectations its products, its collaboration with Knight, the
INSPIRE Trial and Onconova’s other development plans. 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. 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. These statements are only predictions
and involve known and unknown risks, uncertainties, and other
factors, including Onconova's ability to continue as a going
concern, the need for additional financing, the success and timing
of Onconova's clinical trials and regulatory approval of protocols,
Onconova’s ability to maintain its Nasdaq listing, the use of
proceeds of this offering 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.
General Contact
Avi OlerOnconova Therapeutics,
Inc.267-759-3680ir@onconova.ushttp://www.onconova.com/contact/
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