Item 1.01
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Entry into a Material Definitive Agreement
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On January 31, 2020, Sierra Oncology, Inc. (the Company) entered into a security purchase agreement (the
SPA) with Gilead Sciences, Inc. (Gilead), pursuant to which the Company agreed to (i) issue to Gilead 725,283 shares (the Shares) of the Companys common stock
(the Common Stock) and (ii) issue a warrant (the Warrant) to purchase up to 725,283 shares of Common Stock (the Warrant Shares), with an exercise price equal to
$13.20 per share, in consideration of the Companys and Gileads agreement to amend that certain Asset Purchase Agreement dated August 20, 2018, as set forth in the Amendment to the Asset Purchase Agreement dated October 28,
2019.
The Warrant contains customary provisions allowing for adjustment to the exercise price and number of Warrant Shares issuable including in the
event of any stock split, reverse stock split, stock dividend, other dividend or distribution of assets, recapitalization or similar transaction as described in the Warrant. In addition, subject to limited exceptions, Gilead will not have the right
to exercise its Warrant to the extent that, after giving effect to such exercise, it, together with any affiliates, would beneficially own in excess of 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to
such exercise, which percentage may be increased or decreased, from time to time, at Gileads election upon 61 days notice to the Company. The Warrant is exercisable from any time after the date of issuance, which was January 31,
2020, until its expiration on January 31, 2025.
The Shares, the Warrant, and Warrant Shares have not been registered under the Securities Act of
1933, as amended (the 1933 Act) and were issued in a private placement pursuant to Section 4(a)(2) of the 1933 Act.
Pursuant to the SPA, upon the request of Gilead, the Company will register the resale of the Shares and Warrant Shares.
As previously stated in a Current Report on Form 8-K filed with the Securities and Exchange Commission on
November 13, 2019, a copy of the Amendment to the Asset Purchase Agreement will be filed with the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2019.
The foregoing summaries of the SPA and the Warrant do not purport to be complete and are subject to and qualified in their entirety by the terms of the SPA
and the Warrant, copies of which are attached hereto as Exhibit 10.1 and Exhibit 10.2, respectively, and are incorporated by reference herein.