By Abigail W. Adams
Portland, Me., Nov. 7 – Sierra Oncology, Inc. priced $103 million in par of $1,000 series A convertible preferred stock and series A and B warrants prior to the market open on Thursday, according to an FWP filing with the Securities and Exchange Commission.
Jefferies LLC is bookrunner for the registered offering.
The offering consists of 103,000 shares of convertible preferred stock, 312.09 million series A warrants to purchase up to 312.09 million shares of common stock and 312.09 million series B warrants to purchase up to 102,989,700 shares of common stock.
The preferred stock has a conversion price of 33 cents and will automatically convert on the fifth trading day following shareholder approval for a reverse stock split.
The series A and series B warrants have a strike price of 33 cents and will be exercisable the first trading day following shareholder approval for an increase in common stock.
The series A warrants will expire in five years. The series B warrants will expire 75 days after the announcement of the top line data from its clinical trial.
Proceeds from the offering will be used to fund the company’s planned Phase 3 clinical trial of momelotinib and for general corporate purposes.
Sierra Oncology is a Vancouver, B.C-based late-stage drug development company.
| Issuer: | Sierra Oncology Inc
|
| Bookrunners: | Jefferies LLC
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| Pricing date: | Nov. 7
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| Settlement date: | Nov. 13
|
| Distribution: | SEC registered
|
| Stock symbol: | Nasdaq: SRRA
|
| Stock price: | $0.35 at market close Nov. 6
|
| Market capitalization: | $20.76 million
|
|
|
| Series A preferreds
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| Securities: | Series A convertible preferred stock
|
| Amount: | $103 million or 103,000 shares
|
| Maturity: | The fifth trading day following stockholder approval for a reverse stock split
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| Price: | Par of $1,000
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| Conversion price: | 33 cents
|
|
|
| Series A warrants
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| Securities: | Series A warrants
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| Amount: | 312.09 million warrants to purchase 312.09 million shares
|
| Maturity: | Five years
|
|
|
| Series B warrants
|
| Securities: | Series B warrants
|
| Amount: | 312.09 million warrants to purchase 102,989,700 shares
|
| Maturity: | 75 days after the announcement of the top line data from its clinical trial
|
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