NeOnc Technologies Redeems All Outstanding Series A Convertible Preferred Stock and Eliminates Related Potential Dilution

NeOnc used part of a recent $15 million financing to fully redeem Series A preferred shares in cash and remove a near-term dilution overhang.

Rhea-AI Summary

NeOnc Technologies (NTHI) redeemed for cash all 6,000 outstanding shares of its Series A Convertible Preferred Stock at an aggregate stated value of $6.0 million. No Series A Preferred shares remain outstanding, and no common stock was issued in the redemption.

The company used a portion of net proceeds from its recently completed $15 million registered direct offering to fund the buyback, which was completed within the contractual four‑month redemption window. By acting before the preferred stock’s discounted conversion feature became available, NeOnc avoided potential common share dilution and simplified its capital structure while continuing to advance its Phase II CNS cancer candidates NEO100 and NEO212.

Positive

• Cash redemption of all 6,000 Series A preferred shares at $6.0 million eliminates that class and related potential dilution
• Redemption funded from $15 million registered direct offering completed on September 9, 2026
• Action avoids future conversion at 80% of lowest recent closing price, subject to a $1.00 floor
• Redemption executed within the four‑month window, preventing a stated value increase of $166.67 per share

Negative

• Company pays stated value of $6.0 million to redeem preferred originally issued for $5.0 million gross proceeds, implying a higher effective capital cost

News Explained

The completed cash redemption used $6.0 million against $5.0 million originally raised and removed a conversion path that could have issued common shares.

The company reports that it originally issued the Series A Preferred Stock in a private placement for $5.0 million gross, versus an aggregate redemption value of $6.0 million; the two disclosed amounts frame the cash retirement as larger than the original financing.

Without the redemption, each preferred share’s stated value would have risen by $166.67 and its holder could have converted into common stock at 80% of the lowest closing price over the prior five trading days, subject to a $1.00 floor—terms that describe the potential dilution the release says was eliminated.

Argus 15 min delay

+13.72% vs previous close $3.40 last price 6.3x rel. volume Open Argus

Details

Market reaction after Series A preferred redemption: NTHI +13.72%

$3.01 $3.45 Day Range

$97.94M Market Cap

Following this news, NTHI has gained 13.72%, reflecting a significant positive market reaction. Our momentum scanner has triggered 11 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $3.40. Trading volume is exceptionally heavy at 6.3x the average, suggesting very strong buying interest.

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Market Context

The $15 million registered direct offering announced September 9 funded this redemption, linking the...

Analysis

The $15 million registered direct offering announced September 9 funded this redemption, linking the recent financing to the retirement of all outstanding Series A Preferred Stock.

Key Figures

Preferred shares redeemed: 6,000 shares Redemption value: $6.0 million Funding source: $15 million +5 more

Preferred shares redeemed

6,000 shares

Series A Convertible Preferred Stock

Redemption value

$6.0 million

Aggregate stated value paid in cash

Funding source

$15 million

Registered direct offering announced September 9, 2026

Original private placement

$5.0 million

Gross proceeds when Series A Preferred Stock was issued

Redemption window

Four months

Company right to redeem from issuance

Stated-value increase

$166.67 per share

Amount that would have applied absent redemption

Conversion price

80% of the lowest closing price

Potential conversion term before redemption

Conversion price floor

$1.00

Floor under the potential conversion feature

Historical Context

1 past event · Latest: Sep 09

1 event

1. Sep 09

   Registered direct offering

   24h Move

   -11.1%

   The $15 million offering supplied proceeds used to redeem Series A preferred stock.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible preferred stock, registered direct offering, investigational new drug, fda fast-track

4 terms

convertible preferred stock financial

"all 6,000 outstanding shares of its Series A Convertible Preferred Stock"

Convertible preferred stock is a special class of company shares that pays priority, usually fixed, payments to holders and can be exchanged later for a set number of common shares. It matters to investors because it combines steady income and added protection with the chance to share in a company’s upside; think of it as a hybrid between a bond that pays regularly and an option to convert into growth-oriented stock, where the conversion rules influence both potential gains and how much common shareholders’ ownership may be reduced.

registered direct offering financial

"the Company’s $15 million registered direct offering announced on September 9"

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

investigational new drug regulatory

"advancing under FDA Fast-Track and Investigational New Drug (IND) status"

An investigational new drug is a medication that is still being tested in clinical trials to determine if it is safe and effective for treating a specific condition. For investors, it represents a potential breakthrough that could lead to a new treatment and significant financial gains if successful, but also carries risks since it has not yet been approved for widespread use.

fda fast-track regulatory

"advancing under FDA Fast-Track and Investigational New Drug (IND) status"

A U.S. Food and Drug Administration (FDA) fast-track designation is a regulatory program that speeds the development and review of a drug or biologic intended to treat a serious condition when there is an unmet medical need. It gives the sponsor more frequent interactions with the agency and options like rolling review of application materials, which can shorten the route to approval. For investors, fast-track status can reduce regulatory uncertainty and potentially accelerate the timeline for a product to reach market, similar to getting access to an express lane in a regulatory review process.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Cash redemption simplifies the capital structure with no common shares issued in the redemption

CALABASAS, Calif., Sept. 17, 2026 (GLOBE NEWSWIRE) -- NeOnc Technologies Holdings, Inc. (Nasdaq: NTHI) (“NeOnc” or the “Company”), a multi-Phase 2 clinical-stage biopharmaceutical company developing novel therapies for central nervous system (CNS) cancers, today announced that it has redeemed for cash all 6,000 outstanding shares of its Series A Convertible Preferred Stock (the “Series A Preferred Stock”) at their aggregate stated value of $6.0 million. Following the redemption, no shares of Series A Preferred Stock remain outstanding.

The redemption was funded with a portion of the net proceeds from the Company’s $15 million registered direct offering announced on September 9, 2026, consistent with the use of proceeds disclosed for that offering.

“We made a deliberate decision to redeem the Series A Preferred Stock in cash and eliminate the potential dilution these securities represented for our shareholders,” said Amir F. Heshmatpour, Executive Chairman, President and Chief Executive Officer of NeOnc. “Our recent financing enabled us to retire all outstanding Series A Preferred Stock before its discounted conversion feature became available, simplifying our capital structure without issuing common shares in the redemption. As we advance NEO100 and NEO212, disciplined management of shareholder capital remains central to our strategy. We are focused on translating clinical progress into lasting value for patients and shareholders.”

NeOnc issued the Series A Preferred Stock in June 2026 in a private placement for gross proceeds of $5.0 million. Under its terms, the Company had the right to redeem all outstanding shares for cash at stated value within four months of issuance. Had the Company elected not to redeem, the stated value would have increased by $166.67 per share, and the shares would have become convertible, at the holders’ option, into NeOnc common stock at a conversion price equal to 80% of the lowest closing price during the five trading days prior to conversion, subject to a $1.00 floor price.

About NeOnc Technologies Holdings, Inc.

NeOnc Technologies Holdings, Inc. is a clinical-stage life sciences company focused on the development and commercialization of central nervous system therapeutics that are designed to address the persistent challenges in overcoming the blood-brain barrier. The company’s NEO™ drug development platform has produced a portfolio of novel drug candidates and delivery methods with patent protections extending to 2038. These proprietary chemotherapy agents have demonstrated positive effects in laboratory tests on various types of cancers and in clinical trials treating malignant gliomas. NeOnc’s NEO100™ and NEO212™ therapeutics are in Phase II human clinical trials and are advancing under FDA Fast-Track and Investigational New Drug (IND) status. The company has exclusively licensed an extensive worldwide patent portfolio from the University of Southern California consisting of issued patents and pending applications related to NEO100, NEO212, and other products from the NeOnc patent family for multiple uses, including oncological and neurological conditions.

For more about NeOnc and its pioneering technology, visit https://neonc.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the advancement of NEO100 and NEO212, the Company's clinical development and capital management strategies, and its ability to translate clinical progress into long-term value for patients and shareholders. These statements are based on management's current expectations and are subject to known and unknown risks and uncertainties that may cause actual results to differ materially.

The Company undertakes no obligation to update any forward-looking statement except as required by law.

“NEO100” and “NEO212” are registered trademarks of NeOnc Technologies Holdings, Inc.

Contacts

Company Contact:
info@neonc.com 

Investor Contact:
Jon Nugent
Jon Nugent Communications
jon@jonnugent.com 
205-566-3026

This press release was published by a CLEAR® Verified individual.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did NeOnc Technologies fund the redemption of its Series A Preferred Stock?

The redemption was funded with a portion of the net proceeds from NeOnc’s $15 million registered direct offering that was announced on September 9, 2026. The company stated that this use of proceeds is consistent with what was disclosed for that financing.

What would have happened if NeOnc had not redeemed the Series A Preferred Stock?

If the Series A Preferred Stock had not been redeemed within four months of its June 2026 issuance, the stated value would have increased by $166.67 per share, and holders would have gained the right to convert into NeOnc common stock. The conversion price would have been equal to 80% of the lowest closing price during the five trading days prior to conversion, subject to a $1.00 floor price.

When was the Series A Preferred Stock originally issued and for how much capital?

NeOnc issued the Series A Preferred Stock in June 2026 through a private placement that generated $5.0 million in gross proceeds. The shares carried a company option to redeem all outstanding shares for cash at stated value within four months of issuance.

What stage are NeOnc’s lead drug candidates and what indications do they target?

NeOnc’s lead therapeutics, NEO100 and NEO212, are in Phase II human clinical trials for central nervous system cancers, including malignant gliomas. The company states that these programs are advancing under FDA Fast-Track and Investigational New Drug (IND) status.