Onconetix secures new financing, appoints auditor, sees executive exit

Onconetix, Inc., a pharmaceutical preparations company with a market capitalization of $4.48 million, has entered into a material definitive agreement and created a direct financial obligation, according to its recent 8-K filing with the SEC. On February 12, 2025, the Cincinnati-based company issued a promissory note to Keystone Capital Partners (WA:CPAP), LLC for an aggregate principal amount of $117,647.06, carrying an original issue discount of $17,647.06. According to InvestingPro analysis, the company already operates with a significant debt burden, with a concerning current ratio of 0.06. This financial obligation is due by November 12, 2025, or earlier if the company secures sufficient proceeds from its Equity Line of Credit with the Investor. The note is subordinate to Onconetix’s existing debt with Veru (NASDAQ:VERU) Inc. The company’s financial health score from InvestingPro currently stands at "WEAK," with analysts anticipating sales decline in the current year.

In addition to the financing update, Onconetix announced changes in its accounting oversight. Effective February 13, 2025, MaloneBailey LLP has been appointed as the company’s new independent registered public accounting firm for the fiscal year ended December 31, 2024. This decision by the Audit Committee follows no consultations or disagreements with MaloneBailey in the two most recent fiscal years or the subsequent interim period.

Moreover, Onconetix reported a significant change in its executive team. On Monday, Christian Brühlmann resigned from his role as Chief Strategy Officer. However, he will continue his tenure as Chief Business Officer at Proteomedix AG.

This series of corporate developments, detailed in the 8-K filing, reflects Onconetix’s strategic financial and operational adjustments as it navigates through its fiscal year. The company, formerly known as Blue Water Vaccines Inc., has undergone previous name changes, indicating an evolving business strategy. The stock has experienced significant volatility, with a 92% decline over the past year. InvestingPro subscribers have access to 12 additional key insights about Onconetix’s financial health and market performance.

The information disclosed in this article is based on the statements provided in the company’s SEC filing.

In other recent news, Onconetix, Inc. has been navigating various financial and regulatory developments. The pharmaceutical company received a notification from The Nasdaq Stock Market LLC for non-compliance with the minimum bid price requirement, but remains actively listed and has been granted a 180-day period to address the issue. In addition, Onconetix has settled a potential termination payment with IQVIA, Inc., leading to an adjustment of approximately negative $0.9 million in its accounts payable.

Onconetix also filed an overdue Quarterly Report on Form 10-Q after receiving a deficiency notice from Nasdaq, and has successfully addressed this issue by submitting the required form. Further, the company has negotiated an amendment to its existing forbearance agreement with Veru Inc., modifying the payment terms and providing Onconetix with additional financial flexibility.

These developments are based on recent filings and agreements, and further details can be found in the respective documents. The company continues to comply with market regulations and maintains transparency with its investors.

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