Oncothyreon Inc (USA) (NASDAQ:ONTY) Declares Pricing of Concurrent Public Offerings of Preferred Stock and Common Stock Worth $40 Million

Posted In Healthcare - By Carolin Roth On Friday, September 19th, 2014 With 0 Comments

Dallas, Texas 09/19/2014 (ustradevoice) – According to reports, Oncothyreon Inc (USA) (NASDAQ:ONTY) announced the pricing of its concurrent public offering of 10 million shares of preferred and common stock. All the shares have been priced at $2 per share to public. The initial pricing has been done for expected gross proceeds of 10,000 and $20 million of Series A convertible preferred stock for $2 per share. Apart from this, a different offering of expected gross proceedings of $20 million.

Insights of the offering:

As per the information made public by the company, all the shares of series a convertible preferred stock have two important features. Each one of them is non-voting share and can be converted into 1000 shares of Oncothyreon Inc (USA) (NASDAQ:ONTY) Common Stock. There is a condition put by company, failure to fulfilling it would result into prohibition of the conversion. If any holder or its affiliate would own more than 4.99% of the common stock than outstanding shares, then conversion may be prohibited. As a part of this common stock offering, Oncothyreon Inc (USA) (NASDAQ:ONTY) has also given a 30-day option to all the underwriters in order to buy 1.5 million additional shares of ONTY common stock. The company has made sure that all the offerings are conducted as separate public offering. It means that different prospectus and other materials should have been prepared for both the transactions. None of these offerings will be contingent upon the consummation of another offering.

Approximate proceeding from these offerings is expected to be around $37.4 million, taking all the discounts, expenses and commissions into account. If everything goes fine, then Oncothyreon Inc (USA) (NASDAQ:ONTY) will close this offering on September 23, 2014. Sole book-running manager for this offering is Cowen and Company, LLC, while the co-manager is H.C. Wainwright & Co., LLC. Anyone can obtain the copies of accompanying prospectuses and prospectus supplements by contacting Cowen and Company, LLC.

About the Author

- Carolin Roth graduated from North Dakota University getting both Bachelor’s and Master’s Degrees in Broadcast Journalism.

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