--- title: "Onconetix sells convertible preferred and warrants for approximately $6.25" url: "https://aibio.space/news/onconetix-sells-convertible-preferred-warrants-approximately-6-25/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-10-03" section: "Financings" tickers: "OMXSTO:ONCO" source: "https://www.sec.gov/Archives/edgar/data/1782107/000121390025095847/ea0259860-8k_onconetix.htm" summary: "Institutional investors bought 7,813 shares of Series E convertible preferred stock and warrants for 2,025,223 common shares. The preferred converts at $3." --- By the aibio.space news desk. Sources - [Onconetix, Inc. 8-K (2025-10-03)](https://www.sec.gov/Archives/edgar/data/1782107/000121390025095847/ea0259860-8k_onconetix.htm) - [Onconetix, Inc. 10-K (2025-06-02): business](https://www.sec.gov/Archives/edgar/data/1782107/000121390025049687/ea0244122-10k_onconetix.htm) [ONCO](https://aibio.space/companies/oncopeptides/) 2025-10-03 # Onconetix sells convertible preferred and warrants for approximately $6.25 million Tickers [ONCO](https://aibio.space/companies/oncopeptides/) Institutional investors bought 7,813 shares of Series E convertible preferred stock and warrants for 2,025,223 common shares. The preferred converts at $3.8576. ## Key facts - **Company**: Oncopeptides AB (OMXSTO: ONCO) - **News type**: Financings - **Primary source**: [Onconetix, Inc. 8-K (2025-10-03)](https://www.sec.gov/Archives/edgar/data/1782107/000121390025095847/ea0259860-8k_onconetix.htm) *The New York Stock Exchange trading floor. Photo: Carol M. Highsmith, public domain, via Wikimedia Commons. The picture shows the field, not the companies named.* Onconetix, Inc. (Nasdaq: [ONCO](https://aibio.space/companies/oncopeptides/)) said it sold convertible preferred stock and warrants to institutional investors on October 1, 2025, in a private investment in public equity, or PIPE. The aggregate purchase price was approximately $6.25 million, according to a [Form 8-K](https://www.sec.gov/Archives/edgar/data/1782107/000121390025095847/ea0259860-8k_onconetix.htm) dated October 3, 2025. The Cincinnati company sold 7,813 shares of Series E convertible preferred stock and warrants to buy 2,025,223 shares of common stock. ## The basic terms The board authorized up to 10,000 shares of Series E preferred, each with a stated value of $1,000. The preferred converts into common stock at $3.8576 a share, subject to adjustment. The warrants have an initial exercise price of the same $3.8576, are exercisable from issuance and expire on the third anniversary. The Series E ranks equal to the company's Series C and Series D preferred and ahead of its other capital stock in a liquidation. Dividends are paid when the board declares them, but default dividends accrue at 15.0% a year on the stated value while a triggering event continues, and they are added to the amount that converts. ## Terms that can lower the price The fixed $3.8576 is not a ceiling on dilution. After the Stockholder Approval Date, if a triggering event occurs and continues, holders may convert at an alternate price: the lowest of the conversion price and the greater of a $0.7715 floor price and 90% of the lowest VWAP over the five prior trading days. Holders may also convert after that date at an alternate optional price based on 95% of the lowest VWAP over the same period, subject to the same floor. The warrant exercise price resets downward to the market price if that is lower, with the market price set as the greater of the floor price and the lowest closing price in the prior five trading days. A sale of common stock below the current conversion or exercise price drops the price to the new issuance price. ## What counts as a triggering event The 8-K lists more than a dozen events. They include failing to file the resale registration statement or get it declared effective, a trading suspension of five consecutive trading days, failing to keep authorized shares equal to 150% of the underlying shares, defaults or judgments above $500,000, bankruptcy proceedings, a change of control without consent, a material adverse effect, and any preferred shares still outstanding on or after April 2, 2027. The company may redeem the preferred at a 25% premium to the greater of the conversion amount and a stock-price-based value. Holders may require an exchange on a change of control. ## Who bought and who sold The 8-K does not name a placement agent or any other bank for the PIPE, the investors beyond calling them institutional investors, or any legal counsel. The securities were sold without registration, relying on Section 4(a)(2) of the Securities Act. ## Investor protections and registration Holders may not own more than 4.99% of the common stock through conversion or exercise, a limit the 8-K calls the PIPE Blocker. They can raise it to as much as 9.99% on 61 days' notice. If Onconetix completes a later placement and a holder elects to take part, the holder may exchange preferred shares for those securities at a 20% premium to the conversion amount, subject to Nasdaq restrictions. Under the registration rights agreement, the company must file a resale registration statement within 45 days after closing and have it effective within 120 days, or 90 days if the SEC will not review it. ## What the company is not saying The 8-K states no use of proceeds, no cash balance and no cash burn. The company's 10-K for 2024, filed June 2, 2025, reported a working capital deficit of approximately $17.3 million and an accumulated deficit of approximately $113.0 million at December 31, 2024. It said the company would need to raise additional capital within the next 12 months and that its circumstances raise substantial doubt about its ability to continue as a going concern. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story ONCO Oncopeptides AB OMXSTO ยท Sweden Open the starter desk ## More in Financings Financings ### [INmune Bio raises $4.50 million in registered direct offering with warrants](https://aibio.space/news/inmune-bio-raises-4-50-million-registered-direct-offering-warrants/) Oct 29, 2026 Financings ### [Lexeo Therapeutics files $300 million shelf registration](https://aibio.space/news/lexeo-therapeutics-files-300-million-shelf-registration/) Oct 29, 2026 Financings ### [ProKidney files $650 million shelf with $200 million Jefferies sales program](https://aibio.space/news/prokidney-files-650-million-shelf-200-million-jefferies-sales-program/) Oct 29, 2026 --- Source page: https://aibio.space/news/onconetix-sells-convertible-preferred-warrants-approximately-6-25/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Onconetix sells convertible preferred and warrants for approximately $6.25", 2025-10-03, https://aibio.space/news/onconetix-sells-convertible-preferred-warrants-approximately-6-25/