Sun BioPharma, a clinical-stage biotech developing small molecule therapies for pancreatic cancer, revised the terms of its upcoming IPO on Thursday.
The Waconia, MN-based company now plans to raise $11 million by offering 2.1 million shares at $5, below the last close of its shares on the OTCQB (SNBP). The company had previously filed to offer 1.1 million shares at $8.75, before revising terms yesterday increasing its share offering to 2 million shares at $5. The company is also offering warrants to purchase 2.1 million shares at an assumed exercise price of $6.25 per share (125% of assumed offer price). At the revised price, Sun BioPharma will command a market value of $46 million, a 48% cut from its original terms. Because it is offering warrants and its market cap is less than $50 million, Sun BioPharma will be excluded from RC stats.
Sun BioPharma was founded in 2011 and plans to list on the Nasdaq under the symbol SNBP. Craig-Hallum Capital Group is the sole bookrunner on the deal.
