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NEWTOWN, PA – Traws Pharma, Inc., a pharmaceutical company based in Delaware, has entered into an agreement to amend the terms of its Series A Warrants with certain holders as of Monday. The changes include adjustments to the control change threshold, volatility rate, and exercise price provisions. The company’s stock, currently trading at $4.77, has experienced significant volatility, falling nearly 27% in the past week alone. According to InvestingPro analysis, the stock appears undervalued despite recent challenges.
The amendments, effective February 18, 2025, were made to the Series A Warrants originally issued as part of a securities purchase agreement dated December 29, 2024. The modifications to the warrants include an increase in the threshold for a change of control from 50% to greater than 50% of the company’s outstanding common stock. This change affects the determination of whether a Fundamental Transaction (JO:TCPJ) has occurred. While the company maintains a positive cash position relative to its debt, InvestingPro data indicates rapid cash burn and weak overall financial health.
Additionally, the volatility rate used to calculate the Black Scholes Value of the Series A Warrants, which is relevant for consideration payable to holders in certain types of Fundamental Transactions, has been revised. The Warrant Amendment also removes a section that provided for adjustments to the exercise price in the event of a reverse stock split or similar corporate action.
These amendments to the warrant terms were detailed in a Form 8-K filed with the Securities and Exchange Commission (SEC) on February 19, 2025. Traws Pharma, previously known as Onconova Therapeutics (NASDAQ:TRAW), is recognized under the trading symbol TRAW on The Nasdaq Stock Market LLC.
The SEC filing did not disclose the specific reasons for these amendments or any immediate financial impact on the company. However, such adjustments could potentially influence the value and attractiveness of the warrants to current and prospective investors.
Investors and interested parties can refer to the full text of the Warrant Amendment, which is filed as Exhibit 4.1 in the Current Report on Form 8-K, for a more detailed understanding of the changes. The information provided in this article is based on a press release statement.
In other recent news, Traws Pharma has secured up to $72.6 million in funding to support its drug development programs, particularly for its oral treatment targeting respiratory viral diseases like bird flu. The funding will provide an initial $20 million upon closing, with the potential for an additional $52.6 million contingent on warrant exercises. The company recently completed Phase 1 dosing of its investigational treatment, tivoxavir marboxil, for H5N1 bird flu, reporting safety and effective drug levels in the blood for over 23 days. In a separate development, Traws Pharma received stockholder approval for the issuance of a significant number of shares upon the exercise of warrants, which is part of its financing strategy. The company is also facing the possibility of delisting from the Nasdaq Capital Market due to not meeting the minimum stockholders’ equity requirement, despite having resolved a previous bid price issue. Additionally, board member Luba Greenwood has resigned, a decision made voluntarily and not due to disagreements with the company. These updates reflect Traws Pharma’s ongoing efforts to advance its pharmaceutical initiatives and address regulatory challenges.
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