Sunesis Announces Pricing of $12 Million Offering of Common Stock

Rhea-AI Summary

Sunesis Pharmaceuticals, Inc. (Nasdaq: SNSS) has priced an underwritten public offering of 52,173,913 shares of its common stock at $0.23 per share, aiming for gross proceeds of approximately $12 million. The offering is anticipated to close on or about July 31, 2020. Proceeds will be used for the ongoing development of the PDK1 inhibitor SNS-510 and for general corporate purposes. Underwriters hold a 30-day option to purchase an additional 7,826,086 shares to cover over-allotments. The offering is registered under a prior shelf registration statement with the SEC.

Positive

• Gross proceeds expected to be approximately $12 million.
• Funding allocated for the development of PDK1 inhibitor SNS-510.

Negative

• Potential dilution of shares due to additional share offering.

SOUTH SAN FRANCISCO, Calif., July 29, 2020 (GLOBE NEWSWIRE) -- Sunesis Pharmaceuticals, Inc. (Nasdaq: SNSS) today announced the pricing of an underwritten public offering of 52,173,913 shares of its common stock. The public offering price of each share of common stock is $0.23.

Sunesis expects to receive gross proceeds of approximately $12 million from this offering, before deducting the underwriting discounts and estimated offering expenses. Sunesis has granted the underwriters a 30-day option to purchase up to an additional 7,826,086 shares of common stock to cover over-allotments, if any. This offering is expected to close on or about July 31, 2020, subject to customary closing conditions. Sunesis anticipates using the net proceeds from the proposed offering to fund ongoing development of PDK1 inhibitor SNS-510 and general corporate purposes.

Oppenheimer & Co. Inc. is acting as the sole book-running manager in this offering.

The securities described above are being offered by Sunesis pursuant to a shelf registration statement previously filed with the Securities and Exchange Commission (the "SEC"), originally filed with the SEC on June 8, 2017 and which the SEC declared effective on November 21, 2017. A preliminary prospectus supplement related to the offering has been filed with the SEC and a final prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC's website at http://www.sec.gov. Copies of the preliminary and final prospectus supplements and the accompanying prospectus relating to this offering, when available, may be obtained on the SEC's website or from Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, New York 10004, by telephone at 212-667-8055, or by email at EquityProspectus@opco.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Sunesis Pharmaceuticals

Sunesis is a biopharmaceutical company developing novel targeted inhibitors for the treatment of hematologic and solid cancers. SUNESIS and the logos are trademarks of Sunesis Pharmaceuticals, Inc.

Forward-Looking Statements

This press release contains forward-looking statements, including statements related to the expectations regarding the completion, timing and use of proceeds of Sunesis’ offering. Words such as "may," “intend,” “will,” “potential,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Sunesis' current expectations. Forward-looking statements involve risks and uncertainties. Sunesis' actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to market conditions and the satisfaction of customary closing conditions related to the offering. These and other risk factors are discussed under "Risk Factors" in the applicable prospectus supplement and in Sunesis' Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and Sunesis' other filings with the Securities and Exchange Commission. Sunesis expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Sunesis' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

Investor and Media Inquiries: Maeve Conneighton Argot Partners 212-600-1902

Par Hyare Sunesis Pharmaceuticals, Inc. 650-266-3784

FAQ

What is the price of the shares in the SNSS public offering?

The public offering price is $0.23 per share.

How many shares is Sunesis Pharmaceuticals offering in this public offering?

Sunesis Pharmaceuticals is offering 52,173,913 shares.

What will Sunesis do with the proceeds from the SNSS offering?

The proceeds will fund ongoing development of PDK1 inhibitor SNS-510 and general corporate purposes.

What is the expected closing date for the SNSS public offering?

The offering is expected to close on or about July 31, 2020.

Is there an option for underwriters in the SNSS offering?

Yes, the underwriters have a 30-day option to purchase up to an additional 7,826,086 shares.