OncoSec Medical Closes $42.0 Million Public Offering of Common Stock

Rhea-AI Summary

OncoSec Medical Incorporated (NASDAQ:ONCS) announced the completion of a public offering of 7,711,284 shares at $5.45 per share, raising approximately $42 million in gross proceeds. The funds will support clinical development, regulatory, and manufacturing efforts for its lead candidate TAVO™ and general corporate purposes. The offering was managed by BTIG, LLC and others. TAVO™ targets various cancers using a unique gene therapy approach, having received Orphan Drug and Fast-Track Designation from the FDA for metastatic melanoma.

Positive

• Raised approximately $42 million for clinical and regulatory activities.
• Funds allocated for the development of innovative cancer therapies using TAVO™.

Negative

• Potential dilution of existing shareholder equity from the public offering.

PENNINGTON, N.J. and SAN DIEGO, Jan. 25, 2021 /PRNewswire/ -- OncoSec Medical Incorporated (NASDAQ:ONCS) (the "Company" or "OncoSec"), a late-stage biotechnology company focused on designing, developing and commercializing innovative therapies and proprietary medical approaches to stimulate and guide an anti-tumor immune response for the treatment of cancer today announced the closing of a previously announced underwritten public offering of 7,711,284 shares of its common stock at a price of $5.45 per share. The gross proceeds to OncoSec from the offering, before deducting underwriting discounts, commissions and other offering expenses payable by OncoSec, were approximately $42 million.

BTIG, LLC acted as sole book-running manager for the offering. A.G.P./Alliance Global Partners and ThinkEquity, a division of Fordham Financial Management, Inc. acted as lead managers for the offering, and Maxim Group LLC and Dawson James Securities, Inc. acted as co-managers for the offering

OncoSec intends to use the net proceeds from this offering for (i) clinical, regulatory, manufacturing and, if and when approved, potential commercial activities of its product candidates; (ii) clinical development of the company's product candidates; (iii) research and development activities; (iv) potential acquisitions and in-licensing; and (v) other general corporate purposes.

OncoSec has filed a final prospectus supplement and accompanying base prospectus to its effective shelf registration statement on Form S-3 (File No. 333-233447), and the related registration statement on Form S-3 (File No. 333-252281), filed under Rule 462(b) of the Securities Act of 1933, as amended, with the U.S. Securities and Exchange Commission ("SEC") for the public offering of its common stock. Copies of the final prospectus supplement and the accompanying base prospectus relating to these securities may also be obtained by contacting BTIG, LLC 65 East 55^th Street, New York, NY, 10022, or by telephone at (212) 593-7555 or by e-mail at equitycapitalmarkets@btig.com.

The offering of these securities is being made under an effective shelf registration statement on file with the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About TAVO^™ 
OncoSec's gene therapy technology combines TAVO^™ (tavokinogene telseplasmid), a DNA plasmid-based interleukin-12 ("IL-12"), with an intra-tumoral electroporation gene delivery platform to achieve endogenous IL-12 production in the tumor microenvironment that enables the immune system to target and attack tumors throughout the body. TAVO has demonstrated a local and systemic anti-tumor response in several clinical trials, including the pivotal Phase 2b trial KEYNOTE-695 for metastatic melanoma and the KEYNOTE-890 Phase 2 trial in triple negative breast cancer ("TNBC"). TAVO has received both Orphan Drug and Fast-Track Designation by the U.S.  Food & Drug Administration for the treatment of metastatic melanoma.

About OncoSec Medical Incorporated
OncoSec Medical Incorporated (the "Company," "OncoSec," "we" or "our") is a late-stage biotechnology company focused on developing cytokine-based intratumoral immunotherapies to stimulate the body's immune system to target and attack cancer. OncoSec's lead immunotherapy investigational product candidate – TAVO (tavokinogene telseplasmid) – enables the intratumoral delivery of DNA-based interleukin-12 ("IL-12"), a naturally occurring protein with immune-stimulating functions. The technology, which employs electroporation, is designed to produce a controlled, localized expression of IL-12 in the tumor microenvironment, enabling the immune system to target and attack tumors throughout the body. OncoSec has built a deep and diverse clinical pipeline utilizing TAVO as a potential treatment for multiple cancer indications either as a monotherapy or in combination with leading checkpoint inhibitors; with the latter potentially enabling OncoSec to address a great unmet medical need in oncology: anti-PD-1 non-responders. Results from recently completed clinical studies of TAVO have demonstrated a local immune response, and subsequently, a systemic effect as either a monotherapy or combination treatment approach along with an acceptable safety profile, warranting further development. In addition to TAVO,  OncoSec is identifying and developing new DNA-encoded therapeutic candidates and tumor indications for use with its new Visceral Lesion Applicator, to target deep visceral lesions, such as liver, lung or pancreatic lesions. For more information, please visit www.oncosec.com. 

TAVO™ is a trademark of OncoSec Medical Incorporated.

Risk Factors and Forward-Looking Statements
This release, as well as other information provided from time to time by the Company or its employees, may contain forward-looking statements, including statements regarding the anticipated use of proceeds,  that involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Forward-looking statements provide the Company's current beliefs, expectations and intentions regarding future events and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will" and "would" and similar expressions (including the negative of these terms). Although we believe that expectations reflected in the forward- looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company intends these forward-looking statements to speak only at the time they are published on or as otherwise specified and does not undertake to update or revise these statements as more information becomes available, except as required under federal securities laws and the rules and regulations of the Securities Exchange Commission ("SEC"). In particular, you should be aware that the success and timing of our clinical trials, including safety and efficacy of our product candidates, patient accrual, unexpected or expected safety events, the impact of COVID-19 on the supply of our candidates or the initiation or completion of clinical trials and the usability of data generated from our trials may differ and may not meet our estimated timelines. Please refer to the risk factors and other cautionary statements provided in the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2020 and subsequent periodic and current reports filed with the SEC (each of which can be found at the SEC's website www.sec.gov), as well as other factors described from time to time in the Company's filings with the SEC.

Company Contact
Kim Jaffe, Ph.D.
Assistant Vice President, Business Development & Operations  
+1-858-210-7330 
kjaffe@oncosec.com 

Media Contact
Patrick Bursey
LifeSci Communications
+1-646-970-4688
pbursey@lifescicomms.com

 

 

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SOURCE OncoSec Medical Incorporated

FAQ

What was the total amount raised in the OncoSec public offering on January 25, 2021?

OncoSec raised approximately $42 million in gross proceeds from the public offering.

How many shares of common stock did OncoSec offer in its January 2021 public offering?

OncoSec offered 7,711,284 shares of its common stock.

What is the intended use of proceeds from OncoSec's public offering?

The proceeds will be used for clinical development, regulatory activities, manufacturing, acquisitions, and general corporate purposes.

Who managed the OncoSec public offering?

The offering was managed by BTIG, LLC, along with A.G.P./Alliance Global Partners, ThinkEquity, Maxim Group LLC, and Dawson James Securities, Inc.

What is TAVO™ and its significance to OncoSec?

TAVO™ is OncoSec's lead gene therapy product aimed at treating various cancers by stimulating the immune response, having received FDA designations for melanoma treatment.