Leap Therapeutics, Inc. announced that it has entered into a securities purchase agreement to issue 1,421,801 series A and 1,137,442 series B mandatorily convertible preferred stock for gross proceeds of $27,000,000 on January 3, 2020. The transaction will be led by the affiliates of Baker Bros. Advisors LP, and will also include participation from Perceptive Advisors LLC, and BeiGene, Ltd. The company will issue series B mandatorily convertible preferred stock at a price of $10.55 per share.

At the closing of the transaction, the holder of series A mandatorily convertible preferred stock will also receive a special preferred stock and a special voting preferred stock that will be automatically converted into pre funded warrants to purchase 14,218,010 shares of common stock and series B mandatorily convertible preferred stock will be automatically converted into 11,374,420 shares of common stock plus additional shares representing payment of an 8% per annum accruing dividend. Subject to stockholder approval and conversion of preferred stock the investors will also receive warrants to purchase up to an equal number of shares of common stock at an exercise price of $2.11 per share. The transaction is expected to close on January 8, 2020.