Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events

Subsequent Events

14. Subsequent Events

BeiGene Exclusive Option and License Agreement

On January 3, 2020, the Company entered into a Exclusive Option andLicense Agreement with BeiGene for the clinical development and commercialization of DKN-01, the Company’s anti-Dickkopf-1 (DKK1) antibody, in Asia (excluding Japan), Australia, and New Zealand. The Company will retain exclusive rights for the development, manufacturing, and commercialization of DKN-01 for the rest of the world.

Pursuant to the Exclusive Option and License Agreement, the Company received an upfront cash payment of $3,000 from BeiGene in exchange for granting BeiGene an option to an exclusive license to develop and commercialize DKN-01 in Asia (excluding Japan), Australia, and New Zealand, and will be eligible to receive an additional payment upon BeiGene’s exercise of the option following initial proof-of-concept studies. Additionally, the Company is eligible to receive additional payments based upon the achievement of certain development, regulatory, and sales milestones as well as tiered royalties on any product sales of DKN-01 in the licensed territory.

Private Placement – January 2020

On January 3, 2020, the Company entered into a Securities Purchase Agreement with the Purchasers, providing for a private placement transaction exempt from the Securities Act, pursuant to which the Company issued and sold 1,421,801 shares of its Series A Preferred Stock, at a purchase price of $10.54 per share, and 1,137,442 shares of its Series B Preferred Stock at a purchase price of $10.55 per share, and one (1) share of the Company’s Special Voting Stock entitling the Purchaser of Series A Preferred Stock to elect one member of the Company’s Board of Directors for aggregate net proceeds to the Company of approximately $25,300. On March 5, 2020, the Company’s stockholders approved the conversion of the Series A preferred stock into a pre-funded warrant to purchase 14,413,902 shares of common stock and the conversion of the Series B preferred stock into 11,531,133 shares of common stock. Each investor also received a warrant to purchase an equal number of shares at an exercise price of $2.11 per share.

Warrants

Subsequent to December 31, 2019, there were 65,700 warrants exercised for cash resulting in gross proceeds to the Company of $128.

Stock option grants

On March 2, 2020, the Company made a stock option grant to its directors and employees to purchase 765,000 shares of common stock, pursuant to the Company’s 2016 Plan, at an exercise price of $2.94 per share. Each option grant to directors will vest quarterly over a one year period and each option grant to employees will vest in equal monthly installments over a three year period.