Sunesis Pharmaceuticals Enters into $15.5 Million Common Stock Purchase Agreement with Aspire Capital Fund, LLC
June 25 2018 - 4:10PM
Sunesis Pharmaceuticals, Inc. (Nasdaq:SNSS) today announced that it
has entered into a Common Shares Purchase Agreement (the
“Agreement”) of up to $15.5 million with Aspire Capital Fund, LLC
(“Aspire Capital”).
Under the terms of the Agreement, Aspire Capital
has made an initial investment via purchase of $500,000 worth of
SNSS common shares at a price of $2.19 per common share. In
addition, Aspire Capital has committed to purchasing up to an
additional $15 million of common shares of Sunesis, at Sunesis’
request from time to time during a 24-month period beginning on the
effective date of a registration statement related to the
transaction and at prices based on the market price at the time of
each sale. There are no warrants, derivatives, or other share
classes associated with this Agreement. Under the terms of
the Agreement, Sunesis will control the timing and amount of the
further sale of common shares of Sunesis to Aspire
Capital.
“We are delighted to enter into this transaction
with Aspire Capital and are happy with the control this arrangement
gives us in our fundraising,” said Willie Quinn, Chief Financial
Officer of Sunesis. “This facility gives us another strategic and
flexible financing tool which can efficiently support the
advancement of our kinase inhibitor pipeline, led by the novel,
non-covalent BTK inhibitor vecabrutinib.”
“We are excited to invest in Sunesis and to be
providing additional financial support with this Agreement, as we
believe the company’s lead asset, vecabrutinib, has the potential
to become an important new treatment option for patients with CLL,”
said Steven G. Martin, Managing Member of Aspire Capital. “We are
impressed with the Sunesis team and the work they have done to
understand the science behind non-covalent BTK inhibition and what
that can mean for patients. We look forward to seeing clinical
validation for vecabrutinib.”
Additional Information about the
TransactionProceeds will be used by Sunesis for general
corporate purposes, including working capital. There are no
restrictions on future financings and there are no financial
covenants, participation rights, rights of first refusal, or
penalties in the Agreement. Sunesis has the right to
terminate the Agreement at any time, at its discretion, without any
additional cost or penalty.
As consideration for Aspire Capital’s obligation
under the Agreement, Sunesis issued 212,329 common shares
to Aspire Capital as a commitment fee. Sunesis also
entered into a Registration Rights Agreement with Aspire
Capital in connection with its entry into the Agreement.
Additional detail regarding the Agreement and the related
Registration Rights Agreement is set forth in Sunesis’ Current
Report on Form 8-K filed with the SEC.
About Sunesis
PharmaceuticalsSunesis is a biopharmaceutical company
developing new therapeutics for the treatment of hematologic and
solid cancers. Sunesis has built an experienced drug development
organization committed to improving the lives of people with
cancer. The Company is focused on advancing its novel
kinase-inhibitor pipeline, with an emphasis on establishing proof
of concept that its oral non-covalent BTK-inhibitor vecabrutinib is
effective in ibrutinib-resistant chronic lymphocytic leukemia.
Vecabrutinib is currently being evaluated in a Phase 1b/2 study in
adults with chronic lymphocytic leukemia and other B-cell
malignancies who have progressed after prior therapies. Beyond the
development of vecabrutinib, the Company has two other kinase
inhibitor programs, including Sunesis’ proprietary preclinical PDK1
inhibitor SNS-510, which is in preclinical development with an IND
submission planned in 2019, and the Takeda-partnered pan-RAF
inhibitor TAK-580, which is in a clinical trial for pediatric
low-grade glioma. PDK1 is a master kinase that activates
other kinases important to cell growth and survival including
members of the AKT, PKC, RSK and SGK families. Sunesis is also
seeking a partner to fund the completion of development for
vosaroxin, a Phase 3 investigational product for relapsed or
refractory AML.
For additional information on Sunesis, please
visit www.sunesis.com.
SUNESIS and the logos are trademarks
of Sunesis Pharmaceuticals, Inc.
This press release contains forward-looking
statements, including statements related to Sunesis’ cash
sufficiency forecast, the continued development of vecabrutinib
(SNS-062), including the timing of Phase 1b/2 trial of vecabrutinib
and the therapeutic potential of vecabrutinib, further development
and potential of its kinase inhibitor pipeline, and planned
development of SNS-510. Words such as “believe,” “expect,” “look
forward,” “potential,” “will” and similar expressions are intended
to identify forward-looking statements. These forward-looking
statements are based upon Sunesis' current expectations.
Forward-looking statements involve risks and uncertainties.
Sunesis' actual results and the timing of events could differ
materially from those anticipated in such forward-looking
statements as a result of these risks and uncertainties, which
include, without limitation, the risk related to the timing or
conduct of Sunesis' clinical trials, including the vecabrutinib
Phase 1b/2 trial, the risk that Sunesis' clinical or preclinical
studies for vecabrutinib, SNS-510 or other product candidate may
not demonstrate safety or efficacy or lead to regulatory approval,
the risk that data to date and trends may not be predictive of
future data or results, risks related to the timing or conduct of
Sunesis' clinical trials, that Sunesis' development activities for
vecabrutinib or SNS-510 could be otherwise halted or significantly
delayed for various reasons, that Sunesis may not be able to
receive regulatory approval of vecabrutinib, or SNS-510 in the U.S.
or Europe, and risks related to Sunesis' ability to raise the
capital that it believes to be accessible and is required to fully
finance the development and commercialization of vecabrutinib,
SNS-510 and other product candidates. These and other risk factors
are discussed under "Risk Factors" and elsewhere in Sunesis'
Quarterly Report on Form 10-Q for the quarter ended March 31, 2018
and Sunesis' other filings with the Securities and Exchange
Commission. Sunesis expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein reflect any change in
Sunesis' expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are
based.
Investor and Media
Inquiries:Maeve ConneightonArgot Partners212-600-1902 |
Willie QuinnSunesis Pharmaceuticals Inc.650-266-3716 |
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