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Oncobiologics closes $15M private placement

Oncobiologics Inc. closed a $15 million private placement of its common shares and warrants that have an exercise price of about $20 million with its largest investor GMS Tenshi Holdings Pte. Ltd.

The company issued GMS Tenshi an additional 6,377,383 common shares and warrants to acquire up to 10,256,410 shares for cash proceeds of $7.5 million.

Oncobiologics said the common shares were sold May 11 at the consolidated bid price, along with a premium to reflect the purchase of the warrants.

The warrants have an exercise price of 97.5 cents per share and a term of eight years.

Under the terms of a September 2017 investor rights agreement, GMS Tenshi has certain registration rights with respect to the shares issued in the private placement, including the shares that may be issued upon exercise of the warrants issued to GMS Tenshi in the private placement.

Oncobiologics plans to use the net proceeds from the private placement primarily to begin clinical trials for ONS-5010, a monoclonal antibody under development.

The company also plans to use the proceeds to fund the expansion of the BioSymphony Platform for providing contract development and manufacturing services, and for working capital and general corporate purposes.

Cranbury, N.J.-based Oncobiologics is a clinical-stage biopharmaceutical company, which focuses on identifying, developing, manufacturing and commercializing complex biosimilar therapeutics in immunology and oncology disease areas.