SEATTLE, March 29, 2012 /PRNewswire/ - Oncothyreon Inc. (NASDAQ: ONTY) today
announced that it has priced an underwritten public offering of
11,750,000 shares of its common stock at a price to the public of $4.00
per share for gross proceeds of $47.0 million. The net proceeds from
the sale of the shares, after deducting the underwriters' discounts and
other estimated offering expenses payable by Oncothyreon, will be
approximately $43.6 million. Oncothyreon has also granted the
underwriters a 30-day option to purchase up to an additional 15 percent
of the shares of common stock offered in the public offering to cover
overallotments, if any, which would result in additional gross proceeds
of approximately $7.1 million if exercised in full.
Oncothyreon currently intends to use the net proceeds of the offering to
fund the development of PX-866, Oncothyreon's irreversible pan-isoform
PI-3 kinase inhibitor, and ONT-10, Oncothyreon's proprietary follow-on
vaccine to Stimuvax. Stimuvax, currently in a Phase 3 pivotal trial, is
a vaccine for patients with non-small cell lung cancer and is partnered
with Merck KGaA. The offering proceeds may also be used for general
corporate purposes. The offering is expected to close on or about April
4, 2012, subject to the satisfaction of customary closing conditions.
Cowen and Company, LLC is acting as sole book-running manager for the
offering and Stifel, Nicolaus & Company, Incorporated is acting as
co-manager. Cantor Fitzgerald & Co., Rodman & Renshaw, LLC and Wedbush
PacGrow Life Sciences acted as financial advisors to Oncothyreon in
connection with this offering.
A shelf registration statement (File # 333-178726) relating to these
securities was filed on December 23, 2011, as amended on January 10,
2012, and declared effective by the Securities and Exchange Commission
on January 10, 2012. A preliminary prospectus supplement related to the
offering was filed with the Securities and Exchange Commission on March
28, 2012. The securities may be offered only by means of a prospectus,
including a prospectus supplement, forming a part of the effective
registration statement. Copies of the prospectus supplement and
accompanying prospectus relating to the offering may be obtained, when
available, from Cowen and Company, LLC (c/o Broadridge Financial
Services, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn:
Prospectus Department, Phone: 631-274-2806, Fax: 631-254-7140). An
electronic copy of the prospectus supplement and accompanying relating
to the offering is available on the website of the Securities and
Exchange Commission at www.sec.gov.
This press release does not constitute an offer to sell or the
solicitation of offers to buy any securities of Oncothyreon, and shall
not constitute an offer, solicitation or sale of any security 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.
Oncothyreon is a biotechnology company specializing in the development
of innovative therapeutic products for the treatment of cancer.
In order to provide Oncothyreon's investors with an understanding of our
current intentions and future prospects, this release may contain
statements that are forward-looking. Any statements contained in this
press release that are not statements of historical fact may be deemed
to be forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "will," "intends," "potential,"
"possible" and similar expressions are intended to identify
forward-looking statements. These forward-looking statements include
our expectations regarding future expenses, clinical development
activities, the timing of clinical trial results and the use and
adequacy of cash resources.
Forward-looking statements involve risks and uncertainties related to
our business and the general economic environment, many beyond our
control. These risks, uncertainties and other factors could cause our
actual results to differ materially from those projected in
forward-looking statements, including market risk, the risks associated
with the costs and expenses of developing our product candidates, the
adequacy of financing and cash reserves on hand, changes in general
accounting policies, general economic factors, achievement of the
results we anticipate from clinical trials with our products and our
ability to adequately obtain and protect our intellectual property
Although we believe that the forward-looking statements contained herein
are reasonable, we can give no assurance that our expectations are
correct. All forward-looking statements are expressly qualified in
their entirety by this cautionary statement. For a detailed description
of our risks and uncertainties, you are encouraged to review the
official corporate documents filed with the securities regulators in
the United States on U.S. EDGAR and in Canada on SEDAR. Oncothyreon
does not undertake any obligation to publicly update its
forward-looking statements based on events or circumstances after the
Additional information relating to Oncothyreon can be found on U.S.
EDGAR at www.sec.gov and on SEDAR at www.sedar.com.
SOURCE Oncothyreon Inc.