Dallas, Texas 06/29/2015 (Financialstrend) – Bio-Path Holdings Inc (NASDAQ:BPTH) has signed a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald. As part of the deal, the biotechnology company developing a liposomal delivery technology for nucleic acid cancer drugs is to sell its common stock for $0.001 a share through the financial investment firm. However, the company is not obligated to sell any shares under the sales agreement.
Bioline To Incur A 3.4% Commission
Cantor Fitzgerald acting as the sales agent will have to use commercially reasonable efforts as well as the rules and regulations of the NASDAQ Capital Market to sell the shares. Bio-Path Holdings Inc (NASDAQ:BPTH) is to determine the amount time, as well as the price of shares to be sold at each given time.
Bio-Path Holdings Inc (NASDAQ:BPTH) is to pay Cantor Fitzgerald a commission of 3.4% of the aggregate gross proceeds from each sale of the shares. The sales will have to meet certain conditions including customary closing conditions for transactions of the nature.
The sales agreement provides Bio-Path Holdings Inc (NASDAQ:BPTH) with a flexible avenue for capital when needed according to CEO, Peter Nielsen. The CEO expects the agreement to provide the company with the much-needed funds needed to develop and maximize the proprietary drug delivery technology.
Need For Cash
The capital raising initiative will only be used for specific product development initiatives for working capital, general corporate purposes, and mostly when the market dynamics warrants it. Bio-Path Holdings Inc (NASDAQ:BPTH) will have to raise cash going forward having incurred a loss of $1.4 million in the first quarter that had a big impact on its cash balance
Advancing and building a solid pipeline for cancer therapies is the company’s main objective thus the push to have a reliable avenue for raising cash when needed. Bio-Path Holdings Inc (NASDAQ:BPTH) lead product is currently in the first segment of a Phase 2 trial expected to have a big impact on the financial front upon approval.