Veru settles $8.8 million debt with Onconetix for cash, preferred stock, and warrants

Published 26/09/2025, 14:06
Veru settles $8.8 million debt with Onconetix for cash, preferred stock, and warrants

Veru Inc. (NASDAQ:VERU), a pharmaceutical company with a current market capitalization of $52.59 million, reported this week that it has settled outstanding promissory notes with Onconetix, Inc., formerly known as Blue Water Vaccines Inc., according to a statement filed with the Securities and Exchange Commission.

As of Sunday, Veru was owed a total of $8,826,155.41 under two promissory notes and related amendments. On Sunday, the company entered into a settlement agreement with Onconetix to resolve these obligations. According to InvestingPro data, Veru maintains a healthy liquidity position with a current ratio of 2.42, indicating its ability to cover short-term obligations.

Under the terms of the settlement, Veru agreed to accept a cash payment of $6,326,155.41, 3,125 shares of Onconetix’s Series D Convertible Preferred Stock, and 846,975 warrants to purchase shares of Onconetix’s common stock. Each share of Series D Preferred Stock carries a stated value of $1,000 and is convertible into Onconetix common stock at Veru’s option. The preferred shares also provide certain registration rights, and Onconetix may redeem them under specified conditions.

On Tuesday, Onconetix paid the agreed settlement amounts to Veru, resulting in the termination of the promissory notes and the amended forbearance agreement between the parties.

Veru noted in its filing that there can be no assurance as to whether or when it will be able to receive any cash proceeds from the Series D Preferred Stock, the warrants, or any shares of Onconetix common stock that may be acquired upon exercise of the warrants.

This information is based on a statement by Veru Inc. filed with the SEC.

In other recent news, Veru Inc. reported its third-quarter financial results for fiscal year 2025, which included a significant earnings per share (EPS) miss. The company posted an EPS of -$0.50, which was 900% below the forecasted -$0.05. This earnings report comes as Veru prepares for an upcoming End-of-Phase 2 meeting with the FDA regarding its enobosarm obesity program. Additionally, the FDA has provided regulatory clarity for Veru’s drug candidate enobosarm, accepting incremental weight loss as a primary endpoint for approval. This drug is being developed to preserve muscle mass in combination with GLP-1 receptor agonists for obesity treatment.

Meanwhile, Oppenheimer raised its price target on Veru to $25.00 from $4.00, maintaining an Outperform rating, following a quarterly update on enobosarm. Conversely, Raymond James lowered its price target to $20.00 from $30.00, also maintaining an Outperform rating. These adjustments reflect differing analyst perspectives as Veru continues its clinical development efforts. The company’s strategic focus on its enobosarm program remains a key point of interest for investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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