Shares of Onconova Therapeutics, Inc. [NASDAQ: ONTX] plunged 16% at the time of writing on Friday. The negative performance of the firm has demonstrated that negative reactions of the investors after the firm declared the pricing of an underwritten public offering. The firm has declared that the pricing of an underwritten public offering of 5,000,000 shares of its common stock at a public offering price will be $4.20 per share.
The sole book-running manager of the firm for this offering is Guggenheim Securities. The co-managers for the offering are Ladenburg Thalmann & Co. Inc. and Noble Capital Markets, Inc. The firm has disclosed that the execution of the offering is likely to happen on or about September 28, 2021. The execution will be dependent on the fulfillment of traditional execution requirements.
Gross Profit from Public Offering
Onconova Therapeutics, Inc. [NASDAQ: ONTX] is anticipating that it will get a gross profit of $21 million, before subtracting the underwriting discounts and commissions and other predicted offering expenses. Additionally, Onconova awarded the underwriters a thirty-day option to buy more than an additional 750,000 shares of common stock at the public offering price, subtracting underwriting discounts and commissions.
Furthermore, the securities defined by the firm are being presented by Onconova in accordance with a shelf registration statement on Form S-3 which was originally submitted with SEC by the firm on April 24, 2020. An introductory prospectus supplement concerning the offering was submitted with the SEC on September 23, 2021.