OS Therapies (NYSE: OSTX) Enters into Equity Purchase Agreement with Square Gate Capital Master Fund, LLC-Series 3

On October 31, 2024, OS Therapies Incorporated, a company specializing in ADC and immunotherapy research, disclosed in a Form 8-K filing that it has entered into an Equity Purchase Agreement with Square Gate Capital Master Fund, LLC-Series 3. Under this agreement, OS Therapies has the right, but not the obligation, to sell up to $15,000,000 worth of its common stock to the Investor over the next 24 months.

The Equity Purchase Agreement outlines that the Investor has agreed not to engage in any short sales or hedging transactions with OS Therapies’ common stock. Additionally, there will be no issuance of warrants to purchase common shares in connection with this transaction. The agreement will be in effect until October 31, 2026, or until the Investor has purchased the Maximum Commitment Amount.

OS Therapies holds the discretion to terminate the Equity Purchase Agreement at any time after the effectiveness of the Registration Statement. There are no constraints on future financings, and the Company will utilize the proceeds from the Equity Purchase Agreement to fund clinical development programs and expand its research and preclinical activities.

As part of this agreement, OS Therapies will have the right to direct the Investor to purchase a predetermined number of shares by delivering a written notice. The purchase price for the shares sold will be calculated based on the lowest daily VWAP during the Valuation Period.

Along with the Equity Purchase Agreement, the Company has also entered into a Registration Rights Agreement with the Investor, wherein it will submit an initial registration statement on Form S-1 by November 15, 2024, covering the resale of the Commitment Shares. The Registration Statement aims to facilitate public resale of shares issued under the Equity Purchase Agreement.

The Equity Purchase Agreement and Registration Rights Agreement contain standard representations, warranties, and conditions. The Company’s decision to sell shares under this agreement will be influenced by various factors, including market conditions and funding requirements.

This 8-K filing reveals OS Therapies’ strategic move towards securing funding for future endeavors, emphasizing its commitment to advancing clinical development programs and expanding its research activities significantly.

The full details of the Equity Purchase Agreement and Registration Rights Agreement are available in Exhibits 10.1 and 10.2 of the filing, respectively.

In conclusion, OS Therapies’ collaboration with Square Gate Capital Master Fund, LLC-Series 3 signifies a significant step towards bolstering its financial position and advancing its mission in the biopharmaceutical sector. Investors and stakeholders will be keenly observing how these agreements shape the company’s future prospects.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read OS Therapies’s 8K filing here.

About OS Therapies

OS Therapies Incorporated, a clinical stage biopharmaceutical company, focuses on the identification, development, and commercialization of treatments for osteosarcoma and other solid tumors in the United States. Its pipeline includes OST-HER2, an off-the-shelf immunotherapy for osteosarcoma patients; and OST-tunable drug conjugate (OST-tADC), an antibody-drug conjugate technology, with a plug-and-play platform that features tunable pH sensitive silicone linkers.