Olema Oncology announces combined financing up to $180M

Olema Pharmaceuticals has entered into a stock purchase agreement for a private placement of approximately $130 million of common stock to selected institutional and accredited investors, as well as a new senior secured credit facility with an aggregate principal amount of up to $50 million. The Private Placement is expected to close on September 12, 2023, subject to customary closing conditions. The Private Placement was led by Paradigm BioCapital Advisors, with participation by Lightspeed Venture Partners, Deep Track Capital, BVF Partners L.P., Cormorant Asset Management, Vivo Capital, Logos Capital, and Woodline Partners LP. Pursuant to the terms of the stock purchase agreement, Olema will issue 13,211,382 shares of common stock at a purchase price of $9.84 per share, for gross proceeds of approximately $130 million, before deducting offering expenses. The Private Placement is being conducted in accordance with applicable Nasdaq rules and was priced using the average closing price of Olema’s common stock for the five trading days ended September 1, 2023. The Credit Facility is provided by Silicon Valley Bank, a division of First-Citizens Bank & Trust Company and is a four-year senior secured credit facility with an aggregate principal amount of up to $50 million, of which $25 million will be available upon the closing of the Private Placement, and the remaining $25 million may be made available upon approval by SVB in its discretion. The Company does not anticipate drawing on the Credit Facility at Closing. Olema intends to use the net proceeds from the proposed financing to fund research and development of palazestrant and other ongoing research programs, and for working capital and general corporate purposes. The proceeds from these financings, combined with current cash, cash equivalents and marketable securities, is expected to be sufficient to fund the current operating plan into 2027.