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PROSPECTUS SUPPLEMENT
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SUBJECT TO COMPLETION, DATED JANUARY 17, 2019
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(To Prospectus dated November 21, 2017)
SUNESIS PHARMACEUTICALS, INC.
Shares of Series E Convertible Preferred Stock
We are offering shares of our Series E Convertible Preferred Stock (Series E Preferred Stock)
(and the common stock issuable from time to time upon conversion of the Series E Preferred Stock), pursuant to this prospectus supplement and the accompanying prospectus. The purchase price for each share of Series E Preferred Stock is
$ .
Our common stock is listed on the Nasdaq
Capital Market under the symbol SNSS. On January 16, 2019, the last reported sale price of our common stock was $0.68 per share. There is no established public trading market for the Series E Preferred Stock and we do not expect a market
to develop. In addition, we do not intend to apply for listing of the Series E Preferred Stock on any securities exchange or recognized trading system.
Each share of Series E Preferred Stock is convertible into 1,000 shares of our common stock at any time at the option of the holder, provided that the holder will be prohibited from converting the Series
E Preferred Stock into shares of our common stock if, as a result of such conversion, the holder, together with its affiliates, would own more than 9.98% of the total number of shares of our common stock then issued and outstanding (Beneficial
Ownership Limitation); provided, however, that a holder may, upon written notice to us, elect to increase or decrease the Beneficial Ownership Limitation (not to exceed the limits under Nasdaq Marketplace Rule 5635(b), to the extent
applicable). In the event of our liquidation, dissolution, or winding up, holders of our Series E Preferred Stock will receive a payment equal to the amount that would be paid on the common stock underlying the Series E Preferred Stock, determined
on an as-converted basis. Shares of Series E Preferred Stock will generally have no voting rights, except as required by law and except that the consent of holders of a majority of the outstanding Series E Preferred Stock will be required to amend
the terms of the Series E Preferred Stock.
Certain of our existing significant stockholders have submitted indications of interest to purchase
shares of our Series E Preferred Stock in this offering at the public offering price, or common stock in the concurrent offering. However, because indications of interest are not binding agreements or commitments to purchase, the underwriters may
determine to sell more, fewer or no shares in this offering to these stockholders, and the stockholders may determine to purchase more, fewer or no shares in this offering, or common stock in the concurrent offering.
Concurrently with this offering of Series E Preferred Stock and pursuant to a separate prospectus supplement, we are offering
shares of our common stock.
Our business and an investment in
our securities include significant risks. See
Risk Factors
beginning on page
S-5
of this prospectus supplement and in our Quarterly Report on Form
10-Q
for the quarterly period ended September 30, 2018, which has been filed with the Securities and Exchange Commission and is incorporated by reference in this prospectus supplement and the accompanying
prospectus.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these
securities or determined if this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
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Per Share
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Total
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Public offering price
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$
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$
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Underwriting discount
(1)
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$
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$
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Proceeds, before expenses, to us
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$
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$
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(1)
See
Underwriting
beginning on page
S-16
for a description of the compensation payable to the underwriters.
The underwriters expect to
deliver the shares of Series E Preferred Stock against payment on or about , 2019.
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Wells Fargo Securities
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Oppenheimer & Co.
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The date of this prospectus supplement is
, 2019.