Private Placement and Equity Line of Credit Announcement by Onconetix, Inc.
Private Placement Details
CINCINATTI, Oh., Oct. 03, 2024 (GLOBE NEWSWIRE) — Onconetix, Inc. (Nasdaq: ONCO) (“Onconetix” or “the Company”) (formerly Blue Water Biotech, Inc. (BWV)), a cancer diagnostics company focused on the research, development and commercialization of innovative solutions for oncology, today announced the signing and closing of a private placement of (i) 3,499 shares of the Company’s Series C Convertible Preferred Stock, $0.00001 par value (the “Series C Preferred Stock”), and (ii) warrants (the “Warrants”) to acquire up to an aggregate of 591,856 additional shares of the Company’s common stock, $0.00001 par value per share (the “Common Stock”), for aggregate gross proceeds of approximately $2.0 million. The Series C Preferred Stock are initially convertible into an aggregate of 776,590 shares of Common Stock, subject to certain anti-dilution adjustments.
Equity Line of Credit Agreement
Additionally, on October 2, 2024, Onconetix entered into a Common Stock Purchase Agreement with an equity line institutional investor (the “Purchaser”), whereby the Company has the right, but not the obligation, to sell to the Purchaser, and, subject to limited exceptions, the Purchaser is obligated to purchase, up to $25 million of newly issued shares of the Company’s common stock. The Company’s right to commence sales of Common Stock to the Purchaser are subject to certain conditions, including that a registration statement covering the resale of such shares is declared effective by the SEC.
Use of Proceeds
The Company intends to use the gross proceeds from the private placement for working capital and general corporate purposes.
Financial Advisor
Tungsten Advisors (through its broker-dealer, Finalis Securities, LLC), served as financial advisor to Onconetix.
CEO Statement
“We are pleased to announce this private placement and the equity line of credit,” said Ralph Schiess, Interim CEO. “The Company expects to use the proceeds from the financing to fund operations and potential growth opportunities.”
Impact on Individuals
Based on the announcement, individuals may not directly feel any immediate impact unless they are shareholders of Onconetix. However, the financing received by the company could potentially lead to advancements in cancer diagnostics and treatments which may benefit individuals in the future.
Global Ramifications
The private placement and equity line of credit obtained by Onconetix could have a significant impact on the global healthcare industry. With funding for research and development, the company may be able to introduce groundbreaking solutions for oncology that could positively impact cancer patients worldwide.
Conclusion
In conclusion, the private placement and equity line of credit secured by Onconetix represent a strategic move to advance their research and development efforts in the field of cancer diagnostics. The financial support received will enable the company to pursue growth opportunities and potentially make valuable contributions to the healthcare industry.
