The Oncobiologics Inc. (NASDAQ: ONSIU) initial public offering suffered a devastating first day. Shares ended down 20% to $4.80.
The equity being offered was not via traditional common shares:
Oncobiologics, Inc. (NASDAQ: ONSIU), a clinical-stage biopharmaceutical company focused on identifying, developing, manufacturing and commercializing complex biosimilar therapeutics, today announced the pricing of its initial public offering of 5,833,334 units at a price to the public of $6.00 per unit. Each unit consists of one share of common stock, one-half of a Series A warrant and one-half of a Series B warrant. Each whole Series A warrant entitles the holder to purchase one share of Oncobiologics’ common stock at an initial exercise price of $6.60, subject to adjustment. Each whole Series B warrant entitles the holder to purchase one share of Oncobiologics’ common stock at an initial exercise price of $8.50, subject to adjustment. Oncobiologics, Inc. also has granted the underwriters a 30-day option to purchase up to an additional 875,000 units at the initial public offering price per unit to cover over-allotments, if any.
The company lost $48 million last year and $13 million in 2014.