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OncoCyte Corporation (NYSEMKT: OCX) 3.24 M unit sale with 100% warrant coverage raises $10.5 M

August 30, 2016 8:27am

BioTime’s (NYSEMKT: BTX) majority-owned subsidiary OncoCyte Corporation sold an aggregate of 3,246,153 "units," with each unit consisting of one share of OCX's common stock and one warrant to purchase one share at a price of $3.25 per unit.

The investors include certain OncoCyte shareholders, including George Karfunkel who beneficially owns more than 5% of the outstanding OCX’s stock.

OncoCyte has agreed to pay a commission to its placement agent, Cowen and Company, LLC, in the amount of $511 K in cash.

The Bottom Line: OncoCyte received gross proceeds of approximately $10.5 M from the Offering. Because BioTime holds more than a majority of the outstanding shares of OncoCyte’s stock, the approval of the issuance of the warrants by written consent by BioTime will be sufficient to constitute Shareholder Approval.

The units immediately separated pursuant to the terms and conditions of one of two forms of securities purchase agreement, each dated August 29, 2016, by and between OncoCyte and each of several institutional and accredited individual investors.

The Warrants have an exercise price of $3.25 per share become exercisable on the earlier of November 28, 2016 or the date OncoCyte shareholders approve the issuance of shares of stock upon the exercise of the Warrants.

OCX closed at $4.02 on Friday and was DOWN -$0.07 to $3.95

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