OncoSec Medical Inc (NASDAQ:ONCS), a company developing DNA-based intratumoral cancer immunotherapies, announced today that it has entered into definitive agreements with institutional investors to purchase approximately $7.5 million of securities in a registered direct offering. OncoSec has agreed to sell to such investors an aggregate of 2,142,860 shares of its common stock at a price of $3.50 per share. Additionally, investors will receive warrants to purchase up to an aggregate of 1,071,430 shares of common stock at an exercise price of $4.50 per share for a term of 5.5 years. The warrants will become exercisable after a six-month waiting period.
The gross proceeds of the offering are approximately $7.5 million. Net proceeds, after deducting the placement agent’s fee and other estimated offering expenses payable by OncoSec, are expected to be approximately $6.9 million. OncoSec intends to use proceeds from the offering for general corporate purposes, including clinical trial expenses and research and development expenses.
H.C. Wainwright & Co., LLC acted as the exclusive placement agent for the transaction. Maxim Group LLC and Noble Life Science Partners acted as financial advisors to OncoSec in connection with the transaction. The offering is expected to close on or before November 6, 2015, subject to the satisfaction of customary closing conditions.(Original Source)
Shares of OncoSec are trading down 16.55% to $3.58. ONCS has a 1-year high of $8.40 and a 1-year low of $0.22. The stock’s 50-day moving average is $4.89 and its 200-day moving average is $5.73.
On the ratings front, OncoSec has been the subject of a number of recent research reports. In a report issued on September 28, Maxim Group analyst Jason Kolbert reiterated a Buy rating on ONCS, with a price target of $17, which implies an upside of 296.3% from current levels. Separately, on August 19, H.C. Wainwright’s Mark Breidenbach initiated coverage with a Buy rating on the stock and has a price target of $25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Kolbert and Mark Breidenbach have a total average return of -13.6% and -7.3% respectively. Kolbert has a success rate of 30.3% and is ranked #3819 out of 3824 analysts, while Breidenbach has a success rate of 36.4% and is ranked #3230.
OncoSec Medical Inc is a biotechnology company focused on designing, developing and commercializing gene therapies, therapeutics and proprietary medical approaches to stimulate and guide an anti-tumor immune response for the treatment of cancer.