Deal sells 5 million units of one common share, one five-year warrant
By Devika Patel
Knoxville, Tenn., May 30 - Oncothyreon Inc. said it plans a $10 million registered direct offering of units with Biotechnology Value Fund, LP.
The company will sell 5 million units of one common share and one warrant at $2.00 per unit.
The five-year warrants are each exercisable at $5.00, a 163.16% premium to the May 29 closing share price of $1.90.
Settlement is expected June 4.
Proceeds will be used to fund a portion of the $10 million fee payable under the company's development and commercialization agreement with Array BioPharma Inc. and for general corporate purposes, including research and product development, pre-clinical studies and clinical trials, moving product candidates towards commercialization and possible acquisitions or licensings of new product candidates or technology.
Oncothyreon is a Seattle biotechnology company.
| Issuer: | Oncothyreon Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $10 million
|
| Units: | 5 million
|
| Price: | $2.00
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $5.00
|
| Investor: | Biotechnology Value Fund, LP
|
| Pricing date: | May 30
|
| Settlement date: | June 4
|
| Stock symbol: | Nasdaq: ONTY
|
| Stock price: | $1.90 at close May 29
|
| Market capitalization: | $108.14 million
|
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