Leap Therapeutics enters into $21M common stock purchase agreement
Leap Therapeutics has entered into common stock purchase agreements for up to $21M with Lincoln Park Capital Fund, a Chicago-based institutional investor and current shareholder. LPC agreed to purchase $1M of Leap's registered common stock at a price of $1.75 per share. Net proceeds to the company are approximately $950K. Under the terms of a separate common stock purchase agreement, Leap will have the option, but not the obligation, to sell to LPC up to an additional $20M in shares of common stock in tranches over a twenty-four month period and once a registration statement relating to the transaction is declared effective. There is no upper limit as to the price per share that LPC may pay for future stock issuances under the Commitment Purchase Agreement, and Leap will control the timing and amount of any future sales. LPC has agreed not to cause or engage in any direct or indirect short selling or hedging of Leap's common stock. In consideration for entering into the Commitment Purchase Agreement and in lieu of making a cash payment, Leap has issued 330,000 shares of common stock to LPC. Leap maintains the right to terminate the Commitment Purchase Agreement at any time, at its discretion.