OS Therapies Inc (NYSE American:OSTX), a biopharmaceutical company specializing in ADC and immunotherapy with a current market capitalization of $98.76 million, has completed a second private placement round on Monday, raising approximately $1.05 million.
The placement involved issuing units at $4.00 each, comprising Series A Senior Convertible Preferred Stock and warrants to purchase common stock. According to InvestingPro data, the stock currently trades at $4.16, showing significant price volatility in recent months. The proceeds before transaction costs are slated for corporate purposes.
The company, headquartered in Grasonville, Maryland, had previously reported a private placement in a December 30 SEC filing. The initial round, dated December 24, 2024, aimed to raise between $6 million and $10 million. With a current ratio of 0.76 and negative EBITDA of $5.0 million in the last twelve months, the additional funding comes at a crucial time. The Series A Preferred Stock included in the units comes with rights for conversion into common stock, a liquidation preference, and voting rights on an as-converted basis.
The purchase agreement restricts further common stock issuance for six months post-closing or until stockholder approval is obtained, whichever is later. Moreover, the company is limited in its ability to engage in variable rate transactions while investors hold the warrants.
OS Therapies also amended its registration rights agreement, committing to file a registration statement with the SEC for the resale of common stock underlying the Series A Preferred Stock and warrants within 30 days following the second closing. The company is required to make the registration statement effective within 45 days thereafter.
The capital raised through this private placement will support OS Therapies' continued research and development in the fields of ADC and immunotherapy. This news is based on a press release statement.
In other recent news, OS Therapies, a biotechnology firm, has secured $6 million through a private placement of securities. The company plans to issue 1.5 million units, each consisting of Series A Senior Convertible Preferred Stock and warrants to buy common stock.
This transaction is scheduled to close with standard closing conditions in place. The funds raised from this placement are intended for working capital, with a focus on achieving clinical and regulatory milestones for their leading therapeutic candidate, OST-HER2.
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