Onconova Therapeutics, Inc. Announces $10 Million Registered Direct Offering Priced At-The-Market
December 31 2019 - 11:30AM
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 that it
has entered into definitive agreements with [two]
healthcare-focused institutional investors for the issuance and
sale in a registered direct offering of 27,662,518 shares of its
common stock at a purchase price of $0.3615 per share, for
aggregate gross proceeds of approximately $10 million in a
registered direct offering priced at-the-market under Nasdaq rules.
H.C. Wainwright & Co. is acting as the
exclusive placement agent for the offering.
The offering is expected to close on or about
January 3, 2019, subject to the satisfaction of customary closing
conditions.
The Company currently 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, and advancing
preparations for commercialization if the NDA is approved. 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 expected
proceeds from the offering and the proceeds from recent warrant
exercise, the Company believes that it has the sufficient funds to
extend operations and ongoing trials late into the first quarter of
2021.
The shares of common stock described above are
being 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
shares of common stock will be 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 will be filed with the SEC and
will be 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
registered direct offering, the intended use of proceeds and the
timing of the closing of the offering, 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, its ability to maintains its Nasdaq listing, the need for
additional financing, the success and timing of Onconova's clinical
trials and regulatory approval of protocols, 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 Oler Onconova Therapeutics, Inc.
267-759-3680ir@onconova.us http://www.onconova.com/contact/
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