On May 13, 2016 AVEO Oncology (NASDAQ:AVEO) treported that it entered into a securities purchase agreement for a private placement with a select group of qualified institutional buyers, institutional accredited investors and accredited investors (Press release, AVEO, MAY 13, 2016, View Source;p=RssLanding&cat=news&id=2168251 [SID:1234512359]).
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The private placement will consist of 17,642,482 units, at a price of $0.965 per unit, for gross proceeds of approximately $17 million, before deducting placement agent fees and estimated offering expenses. Each unit consists of one share of AVEO’s common stock and a warrant to purchase one share of AVEO’s common stock. The warrants will have an exercise price of $1.00 per share and will be exercisable for a period of five years from the date of issuance. The closing of the financing is expected to take place on or about May 18, 2016, and is subject to standard closing conditions. AVEO expects to use the proceeds from the financing to fund its U.S. pivotal Phase 3 trial of tivozanib, to support a combination trial of tivozanib with a PD-1 inhibitor and for general corporate purposes.
The securities to be sold in this private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws, and accordingly may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. AVEO has agreed to file a registration statement with the Securities and Exchange Commission (the "SEC") registering the resale of the shares of common stock, and the shares of common stock issuable upon the exercise of the warrants, issued in this private placement.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state. Any offering of the securities under the resale registration statement will only be by means of a prospectus.