Onconetix Completes Warrant Exercise, Raises $1.11 Million

On July 15, 2024, Onconetix, Inc., a biotechnology company based in Cincinnati and listed on Nasdaq under the ticker ONCO, announced the successful closure of an exercise of certain existing warrants. These warrants were used to purchase 7,458,642 shares of the company's common stock at reduced prices ranging from $1.09 to $2.546 per share, which were lowered to $0.15 per share for this transaction. Through this exercise, Onconetix raised approximately $1.11 million in gross proceeds before accounting for placement agent fees and other related expenses. H.C. Wainwright acted as the exclusive placement agent for the transaction.

The company plans to utilize the net proceeds for working capital needs and general corporate purposes. The shares issued upon exercise of these existing warrants were registered under an already effective registration statement on Form S-1, which was approved by the Securities and Exchange Commission (SEC) on July 1, 2024.

In exchange for the immediate exercise of these warrants for cash, Onconetix granted new unregistered warrants to purchase up to a total of 22,375,926 shares of common stock. These new warrants were issued in a private placement under Section 4(a)(2) of the Securities Act of 1933. The shares issuable upon the exercise of these new warrants will require stockholder approval to become exercisable. The new warrants come with an exercise price of $0.15 per share. One-third of these warrants will have a five-year term from the date of stockholder approval, while the remaining two-thirds will have a twenty-four-month term.

The new warrants issued in the private placement have not been registered under the Securities Act of 1933 or applicable state securities laws, meaning they cannot be offered or sold in the U.S. without meeting specific registration requirements or exemptions. As part of the offering, Onconetix agreed to file a resale registration statement on Form S-3 with the SEC to register the resale of the shares issuable upon exercise of the new warrants, as soon as possible.

Onconetix emphasized that this announcement does not constitute an offer to sell or solicit the purchase of these securities, nor will there be any sale of these securities in any state or jurisdiction where such offers or sales would be illegal without proper registration or qualification under applicable securities laws.

Onconetix, Inc. is actively involved in developing and marketing innovative solutions for men’s health and oncology. Through its recent purchase of Proteomedix AG, Onconetix has acquired Proclarix, an in vitro diagnostic test for prostate cancer approved in the European Union. The company aims to market Proclarix in the U.S. as a lab-developed test through a licensing agreement with Labcorp. Additionally, Onconetix owns ENTADFI, which is a daily pill approved by the FDA to treat benign prostatic hyperplasia. This medication combines finasteride and tadalafil.