OS Therapies Incorporated (NYSE American: OSTX) announced the initial closing of a warrant exercise inducement and exchange offer on October 15, 2026. The offer, which commenced on October 11, 2026, was made to less than 10 accredited investors holding existing warrants. Under the terms of the agreement, these investors exercised or pre-funded their existing warrants to purchase shares of common stock at a reduced exercise price of $1.30 per share.
At the initial closing, seven investors participated, exercising warrants to purchase an aggregate of 5,517,253 shares of common stock. In exchange for this cash exercise, the Company issued new common stock purchase warrants to the participating investors. These new warrants allow the purchase of an equal number of shares at an exercise price of $1.40 per share. The Company received aggregate gross proceeds of approximately $7.2 million from this transaction, before deducting solicitation agent fees and other offering expenses.
The Company has engaged a registered broker-dealer as its exclusive solicitation agent to manage the offer, which is scheduled to expire at 11:59 p.m. Eastern time on October 30, 2026. The solicitation agent is to be paid a cash fee equal to 7.0% of the aggregate gross cash proceeds received by the Company from the exercise and pre-funding of the existing warrants, along with a non-accountable expense allowance of $25,000.
OS Therapies stated that if all outstanding warrants are exercised or pre-funded, the Company expects to receive aggregate gross proceeds of approximately $12.3 million. The Company intends to use the net proceeds from this offering to fund clinical development activities, including ongoing and planned clinical trials, regulatory activities, and commercialization preparation. The Company also reported accrued refundable U.K. research and development tax credits totaling $7 million, which are expected to be submitted for filing in the fourth quarter of 2026.
The Company is advancing its lead asset, Herlystic, an immunotherapy for osteosarcoma. Herlystic has received various designations from the U.S. FDA and the EMA, including Orphan Drug Designation, Fast Track Designation, and Rare Pediatric Disease Designation. The Company intends to submit Biologics License Application (BLA) requests to the U.S. FDA and Conditional Marketing Authorisation Applications to regulators in the U.K., Europe, and Australia in the fourth quarter of 2026.
