Oncobiologics Announces $15 Million Private Placement Offering

Oncobiologics (NASDAQ:ONS) today announced that on May 11, 2018, it entered into a purchase agreement with GMS Tenshi Holdings Pte. the Company’s strategic business partner and largest investor, providing for the private placement of $15.0 million of shares of its common stock and warrants that have an aggregate exercise price of approximately $20.0 million. The closing of the sale of the first tranche of this private placement for an aggregate of 6,377,383 shares of Oncobiologics common stock and warrants to acquire up to 10,256,410 additional shares of its common stock for aggregate cash proceeds of $7.5 million occurred today.

As quoted in the press release:

“We are pleased to have the continued financial backing and strategic support from GMS Tenshi. The proceeds from this equity offering provide us with the capital resources to support Oncobiologics’ ongoing clinical and pre-clinical development programs in the U.S., including ONS-5010, an innovative drug product candidate, through the end of 2018. We look forward to providing updates over the coming weeks and months as we make progress advancing our programs and business,” commented Dr. Pankaj Mohan, Chairman and Chief Executive Officer of Oncobiologics.

Oncobiologics intends to use the net proceeds from the private placement primarily for the initiation of clinical trials for ONS-5010, an innovative monoclonal antibody (mAb) product candidate under development, the expansion of the BioSymphony™ Platform for providing contract development and manufacturing services (CDMO), and for working capital and general corporate purposes.

Click here to read the full press release.