NEW YORK - OS Therapies, Inc. (NYSE-A: OSTX), a biotechnology firm engaged in cancer immunotherapy and antibody drug conjugate research, has announced a private placement of securities expected to generate $6 million. The company will issue 1.5 million units at $4.00 each, comprising Series A Senior Convertible Preferred Stock and warrants to purchase common stock. The transaction is set to close on December 27, 2024, subject to standard closing conditions. The placement price represents a slight discount to the current trading price of $4.10, with InvestingPro data indicating the stock is currently overvalued based on its Fair Value analysis.
The preferred stock is initially convertible into common shares at $4.00, with warrants exercisable at $4.40 per share. These securities have not been registered under the Securities Act of 1933, and the company has committed to filing with the SEC for the resale of the common stock issued in this private placement. With a market capitalization of $80.3 million and a year-to-date return of 50.6%, OS Therapies has shown strong momentum despite challenging market conditions.
Proceeds from the placement are earmarked for working capital, emphasizing clinical and regulatory milestones to support the commercialization of OST-HER2, OS Therapies' leading therapeutic candidate for treating recurrent, resected metastatic osteosarcoma. The FDA has granted OST-HER2 designations for rare pediatric disease, fast track, and orphan drug. This is in anticipation of data from the Phase 2b clinical trial of OST-HER2, which is expected to be announced during the week of the JP Morgan Healthcare Conference in January 2025. InvestingPro analysts maintain a strong buy consensus with price targets ranging from $8 to $21 per share.
Brookline Capital Markets acted as the placement agent for the transaction, with Ceros Financial Services serving as a selected dealer.
OS Therapies focuses on developing treatments for Osteosarcoma and other solid tumors. Its lead asset, OST-HER2, is an immunotherapy that targets the HER2 protein and has shown promise in preclinical and early clinical settings. The company also develops a next-generation Antibody Drug Conjugate (ADC) platform called tunable ADC (tADC), featuring proprietary technology. According to InvestingPro's financial health assessment, the company maintains a "GOOD" overall health score, though its current ratio of 0.76 and last twelve months EBITDA of -$5.0 million reflect its development-stage status.
This press release serves as a factual report based on a press release statement and does not constitute an offer to sell the securities mentioned.
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