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OncoSec Announces $30 Million USD Strategic Investment at a Premium to Market by China Grand Pharmac

CGP Obtains a 12-Month Option to Offer to Acquire the Remaining Shares of OncoSec at the Greater of $4.50 Per Share or 110% of the Market Price PENNINGTON, N.J., Oct. 10, 2019 /PRNewswire/ --

OncoSec Medical Incorporated (OncoSec) (Nasdaq:ONCS), a late-stage intratumoral cancer immunotherapy company, today announced it entered into a strategic transaction with Grand Decade Developments Limited (Grand Decade), a direct, wholly-owned subsidiary of China Grand Pharmaceutical and Healthcare Holdings Limited (CGP) (HKG:512), and its affiliate, Sirtex Medical US Holdings, Inc. (Sirtex).

Details of the transaction are as follows:

  • OncoSec will receive a $30 million investment from CGP and its affiliate Sirtex at $2.50 per share, an approximate 25% premium to the average share price over the last 20 days since October 9, 2019. The transaction is subject to shareholder approval.

  • Upon the closing of this transaction, CGP and Sirtex together will hold 53% of OncoSec common shares and will be entitled to three of nine seats on the OncoSec Board of Directors.

  • Should CGP seek to offer to acquire the remaining shares of OncoSec within the 12 months following the closing of the transaction, the offer price for the outstanding shares of OncoSec must be the greater of $4.50 per share or 110% of the last closing stock price of the common stock on the date prior to making an offer to acquire the remaining outstanding shares of common stock.

  • OncoSec will grant Grand Decade and its affiliates an exclusive license to develop, manufacture, commercialize, or otherwise exploit OncoSec's current and future products, including TAVO™ and OncoSec's new Visceral Lesion Applicator (VLA), in Greater China[1] and 35 other Asian countries (the "Territory"). Grand Decade will pay up to 20% royalties on the net sales of such products in the Territory.

  • Sirtex will support and assist OncoSec with pre-marketing activities for TAVO and VLA in exchange for low single-digit royalties on TAVO and VLA net sales outside the Territory.

More details of the transaction documents can be found in OncoSec's filings with the U.S. Securities and Exchange Commission.