OncoSec Medical Incorporated (OTCBB: ONCS), which is developing its advanced-stage OncoSec Medical System (OMS) ElectroOncology therapies to treat solid tumor cancers, announced today that it has entered into definitive agreements with institutional investors to purchase $7.75 million of securities in a registered public offering. OncoSec has agreed to sell to institutional investors an aggregate of 31,000,000 shares of its common stock at $0.25 per share. Additionally, investors will receive Warrants to purchase up to 31,000,000 shares of common stock at an exercise price of $0.35 per share for a term of five years.
The gross proceeds of the offering are expected to be $7.75 million. Net proceeds, after deducting the placement agent's fee and other estimated offering expenses payable by OncoSec, are expected to be approximately $7.2 million.
OncoSec intends to use proceeds from the offering for general corporate purposes, including clinical trial expenses and research and development expenses.
"We are pleased to have the endorsement of several healthcare institutional investors that recognize the value of our clinical development plan," said Punit Dhillon, President and CEO.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM), acted as the exclusive placement agent for the transaction.
The offering is expected to close on March 28, 2012, subject to customary closing conditions.
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