On October 08, 2015 Onconova Therapeutics, Inc. (NASDAQ:ONTX), a clinical-stage biopharmaceutical company focused on discovering and developing novel products to treat cancer, reported that the Company has entered into a share purchase agreement and a registration rights agreement ("Agreements") with Lincoln Park Capital Fund, LLC ("LPC") (Press release, Onconova, OCT 8, 2015, View Source [SID:1234507682]). Upon signing the Agreements, LPC made an initial purchase of 846,755 shares of the Company’s common stock for $1,500,000. Under the terms and subject to the conditions of the Agreements, the Company has the right to sell to, and LPC is obligated to purchase, up to an additional $15,000,000 in amounts of shares of the Company’s common stock, subject to certain limitations, from time to time, over the 36-month period commencing on the date that a registration statement, which the Company agreed to file with the Securities and Exchange Commission, is declared effective and a final prospectus is filed. In consideration for entering into the Agreements, Onconova has issued common shares to LPC as a commitment fee.
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LPC cannot require any sales by the Company, but is obligated to make purchases from Onconova as the Company directs. Onconova has the right to terminate the Agreements at any time, at no cost or penalty. LPC has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s common stock.
The Company expects that any net proceeds received from this offering will be used to support the clinical development of rigosertib, as well as for general corporate purposes and working capital requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any shares of common stock, nor shall there be any sale of shares of common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.