OncoSec Medical Inc. (NASDAQ:ONCS)
OncoSec Medical Inc. (NASDAQ:ONCS) shares fell 12.9% after the biotechnology company announced it has entered into a definitive purchase agreement with accredited investors. Pursuant to the agreement, the company is to issue 5.3 million shares of common stock at $1.34 a share.
The company has also agreed to issue the investors unregistered warrants, expiring in 5.5 years, for the purchase of up to 3.9 million shares of common stock at $1.25 a share. OncoSec Medical expects gross proceeds of $7.1 million from the offering.
OncoSec Medical Inc. (NASDAQ:ONCS) expects net proceeds of approximately $6.2 million after the deduction of fees and other expenses. The offering should close on or about October 25, 2017.
Net proceeds from the offering are to be used for working capital, general corporate purposes, and for ongoing clinical research and development programs. The pricing of the purchase agreement appears to have spooked investors as seen by the stock’s failure to rise above $1.30.
Prior to the announcement of the offering, OncoSec Medical Inc. (NASDAQ:ONCS) had been on an impressive run after a string of positive clinical trial results. However, the uptrend appears to be losing momentum – threatening to push the stock to multi-year lows.
OncoSec has been trading higher in the market following the presentation of positive Phase 2 data for it lead candidate drug ImmunoPulse IL-12 for the treatment of metastatic melanoma. Phase 2 study results indicate that only 10% of the patients treated with the drug in combination with pembrolizumab experienced serious adverse events
Preliminary trial results also indicate that ImmunoPulse IL-12 has the potential to trigger key immunologic events.
“Collectively, these study findings reinforce the combination of ImmunoPulse IL-12 and pembrolizumab to address a significant unmet medical need in melanoma patients who are unlikely to respond to anti-PD-1 therapies,” said Punit Dhillon, CEO, and President of OncoSec.
OncoSec Medical Inc. (NASDAQ:ONCS) is to present additional data in ongoing Phase 2 combination study at the upcoming Society for Immunotherapy of Cancer Annual Meeting.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.