The Oncology Institute announces $16.5M private placement

The Oncology Institute (TOI) entered into a securities purchase agreement with accredited investors for a private placement that is expected to result in gross proceeds of approximately $16.5M, before deducting placement agent fees and offering expenses. The Private Placement includes participation from existing investors, as well as members of the Company’s management team and Board of Directors and is expected to close on March 26, 2025, subject to customary closing conditions. Pursuant to the terms of the Securities Purchase Agreement, the Company will issue to purchasers in the Private Placement units consisting of two shares of common stock and common warrants to purchase one share of common stock of the Company at a price of $2.2084 per unit. The pre-funded warrants will have an exercise price of $0.0001 per share until exercised in full, and the common warrants will have an exercise price of $1.1980 per share. All of the securities to be issued in the Private Placement will be offered by the Company. In connection with the Private Placement, investment funds affiliated with Deerfield Management Company has entered into an exchange agreement pursuant to which Deerfield has agreed to exchange approximately $4.1M aggregate principal amount of the Company’s senior secured convertible notes held by Deerfield in exchange for 37,232.83 shares of common-equivalent preferred stock and warrants to purchase 1,861,642 shares of common stock at the same prices being paid by the investors in the Private Placement. The proceeds from the Private Placement will be used to support organic growth and working capital needs. BTIG is acting as sole placement agent in connection with the Private Placement.