OS Therapies' Private Placement: A Boost for OST-HER2 and Investor Confidence

OS Therapies, Inc. (NYSE-A: OSTX) has announced a private placement of 1.5 million units at $4.00 per unit, expected to yield gross proceeds of $6 million. This move is set to provide the company with sufficient cash runway into 2026 and support its lead therapeutic candidate, OST-HER2, in the treatment of recurrent, resected metastatic osteosarcoma in the United States in 2025. The private placement is expected to close on or about December 27, 2024, subject to customary closing conditions.

The private placement is primarily focused on working capital, with funds allocated for clinical and regulatory milestones to support the commercialization of OST-HER2. The FDA has granted OST-HER2 rare pediatric disease, fast track, and orphan drug designations, indicating the potential significance of this therapy for a specific patient population. Brookline Capital Markets, a division of Arcadia Securities, LLC, served as the placement agent, and Ceros Financial Services, Inc. was engaged as a selected dealer to the placement agent.

The securities being issued and sold in the private placement, as well as the common shares the securities are convertible or exercisable into, have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. The Company has agreed to file a registration statement with the Securities and Exchange Commission (the SEC") registering the resale of the shares of common stock issued in this private placement (the "Resale Shares").



The private placement is expected to have a significant impact on OS Therapies' stock price and market capitalization. With a current stock price of $3.83, the private placement will raise $6 million, increasing the company's cash runway into 2026. Analysts have a consensus Strong Buy rating, with an average price target of $14.5, predicting a 278.59% increase from the current price. The private placement could boost investor confidence, potentially driving the stock price closer to these targets. However, the dilution effect of issuing new shares may temporarily impact the stock price. Assuming the private placement is fully subscribed, the number of outstanding shares will increase by approximately 1.5 million, which could temporarily lower the stock price per share. Nevertheless, the raised funds and positive analyst sentiment suggest a potential long-term positive impact on OS Therapies' stock price and market capitalization.



The 95% investment from Pre-IPO and/or IPO investors in OS Therapies' private placement reflects a strong vote of confidence in the company's lead therapeutic candidate, OST-HER2. This high proportion of investment from these sources suggests that investors are optimistic about the drug's potential and the company's prospects. The fact that these investors are willing to commit significant capital at an early stage indicates that they believe in the company's ability to successfully develop and commercialize OST-HER2, which has received rare pediatric disease, fast track, and orphan drug designations from the FDA. Additionally, the upcoming data release from the Phase 2b clinical trial of OST-HER2 in recurrent, resected metastatic osteosarcoma during the week of the JP Morgan Healthcare Conference in January 2025 is expected to further validate the drug's efficacy and potential market impact.

In conclusion, OS Therapies' private placement is a strategic move that will provide the company with the necessary funds to support its lead therapeutic candidate, OST-HER2, and potentially drive its stock price and market capitalization. The strong investor confidence and positive analyst sentiment suggest a promising future for the company and its innovative cancer immunotherapy.