Alpha Holdings Renews Offer To OncoSec

Provides $9.3 Million in Additional Value Compared with China Grand Takeover and Gives Stockholders the Opportunity to Receive a Cash Premium Binding Term Sheet Expires on February 1 Stockholders who Oppose

Benzinga · 01/27/2020 16:04

Provides $9.3 Million in Additional Value Compared with China Grand Takeover and Gives Stockholders the Opportunity to Receive a Cash Premium

Binding Term Sheet Expires on February 1

Stockholders who Oppose China Grand Takeover Must Vote on BLUE Card Only

Alpha Holdings, Inc. (KOSDAQ: 117670) ("Alpha"), the largest stockholder of OncoSec Medical Incorporated (NASDAQ:ONCS) ("OncoSec"), with an approximate 15.1% ownership stake, today announced that it has renewed its alternative financing proposal and provided a revised binding term sheet to OncoSec. Alpha continues to believe its proposed financing is significantly more favorable to OncoSec and its stockholders than the $30 million takeover offer from China Grand.1

As previously announced, the proposal represents:

  • $9.3 million in additional value compared with the China Grand Takeover;
  • The opportunity for stockholders to receive a cash premium for 35% of OncoSec shares through a tender offer of $2.50 per share; and
  • $30 million in financing for OncoSec at a premium valuation.

Under the terms of its proposal, Alpha would purchase two tranches of newly issued OncoSec common stock: the first tranche of $10 million would be at a purchase price of $2.50 per share and the second tranche of $20 million would be at a 25% premium of the volume weighted average price of OncoSec common stock for the 30 days prior to the date of Alpha exercising the second tranche. The first tranche would be completed within six months of and the second tranche would be completed no later than one year after a definitive agreement. Alpha's binding offer does not include a financing contingency.