On August 31, 2020 Sun BioPharma, Inc. (OTCQB:SNBP Nasdaq:SNBP), a clinical stage biopharmaceutical company developing disruptive therapeutics for the treatment of patients with pancreatic cancer, reported the pricing of an underwritten public offering of 2,545,454 shares of common stock and the same number of warrants to purchase shares of common stock for a price to the public of $4.125 per share and warrant (Press release, Sun BioPharma, AUG 31, 2020, View Source [SID1234564155]). Gross proceeds to the company are expected to be approximately $10.5 million. Each warrant entitles the holder to purchase one share of common stock at an exercise price of $4.54 per share.
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Sun BioPharma also announced that, in connection with the offering, its common stock has been approved for listing on the Nasdaq Capital Market and will begin trading on the Nasdaq Capital Market under the symbol "SNBP" on August 28, 2020.
The offering is expected to close on September 1, 2020, subject to the satisfaction of customary closing conditions. The company intends to use the net proceeds of the offering for working capital and general corporate purposes, including the continued development of our initial product candidate SBP-101.
Craig-Hallum Capital Group is acting as sole book-running manager for the offering.
A registration statement relating to the securities being sold in this offering was filed with the Securities and Exchange Commission (SEC) on July 2, 2020 and was declared effective on August 27, 2020. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities 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. Copies of the final prospectus will be filed with the Securities and Exchange Commission and, when available, electronic copies of the final prospectus may be obtained by contacting Craig-Hallum Capital Group at 222 South Ninth Street, Suite 350, Minneapolis, Minnesota 55402, Attention: Equity Capital Markets, by telephone at 612-334-6300, by email [email protected], or by accessing the SEC’s website, www.sec.gov.
About SBP-101
SBP-101 is a proprietary polyamine analogue designed to induce polyamine metabolic inhibition (PMI) by exploiting an observed high affinity of the compound for the exocrine pancreas and pancreatic ductal adenocarcinoma. The molecule has shown signals of tumor growth inhibition in clinical studies of US and Australian metastatic pancreatic cancer patients, suggesting complementary activity with an existing FDA-approved chemotherapy regimen. In clinical studies to date, SBP-101 has not shown exacerbation of the typical chemotherapy-related adverse events of bone marrow suppression and peripheral neuropathy. The safety data and PMI profile observed in Sun BioPharma’s current clinical trial provides support for continued evaluation of the compound in a randomized clinical trial.