SAN DIEGO, Feb. 10, 2016 /PRNewswire/ -- Mast Therapeutics,
Inc. (NYSE MKT: MSTX), a biopharmaceutical company developing
novel, clinical-stage therapies for sickle cell disease and heart
failure, today announced the pricing of an underwritten public
offering of 29,090,910 units at a price to the public of
$0.275 per unit. Each unit consists
of one share of the Company's common stock and one warrant to
purchase one share of the Company's common stock at an exercise
price of $0.42 per share. The
warrants are exercisable six months and one day following issuance
and have a term of exercise of five years following issuance.
The gross proceeds from this offering are expected to be
approximately $8 million and, after
deducting the underwriting discount and estimated offering
expenses, Mast Therapeutics expects to receive net proceeds of
approximately $7.3 million, not
including any future proceeds from the exercise of the warrants.
The offering is expected to close on or about February 16, 2016, subject to customary closing
conditions.
Roth Capital Partners is acting as sole book-running manager for
the offering. Maxim Group LLC is acting as co-manager for the
offering.
Mast Therapeutics intends to use the net proceeds from the
offering primarily to fund its clinical development programs of
vepoloxamer in sickle cell disease and vepoloxamer and AIR001 in
heart failure, for regulatory, manufacturing and other
commercial-readiness activities for vepoloxamer in sickle cell
disease, and for working capital and general corporate
purposes.
The securities described above are being offered by Mast
Therapeutics pursuant to a shelf registration statement that was
previously filed with and declared effective by the U.S. Securities
and Exchange Commission (SEC). The securities may be offered only
be means of a prospectus supplement relating to the offering and
the accompanying base prospectus, which form a part of the shelf
registration statement. A preliminary prospectus supplement related
to the offering has been filed with the SEC. A final prospectus
supplement relating to the offering will be filed with the SEC and
will be available on the SEC's website at http://www.sec.gov.
Copies of the final prospectus supplement and accompanying base
prospectus relating to this offering may be obtained from Roth
Capital Partners, 888 San Clemente, Newport Beach, CA 92660, (800) 678-9147 or by
accessing the SEC's website, http://www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Mast Therapeutics
Mast Therapeutics, Inc. is a publicly traded biopharmaceutical
company headquartered in San
Diego, California. The Company is leveraging its
Molecular Adhesion and Sealant Technology (MAST) platform, derived
from over two decades of clinical, nonclinical and manufacturing
experience with purified and non-purified poloxamers, to develop
vepoloxamer (also known as MST-188), its lead product candidate,
for serious or life-threatening diseases and conditions typically
characterized by impaired microvascular blood flow and damaged cell
membranes. The Company is also developing AIR001, a sodium nitrite
solution for inhalation via nebulization.
Vepoloxamer is an investigational new drug being evaluated in a
pivotal Phase 3 study called EPIC for the treatment of
vaso-occlusive crisis in patients with sickle cell disease and in a
Phase 2 study for the treatment of patients with chronic heart
failure. AIR001 is an investigational new drug in Phase 2a
clinical development for the treatment of patients with heart
failure with preserved ejection fraction (HFpEF). More information
can be found on the Company's web site at www.masttherapeutics.com.
(Twitter: @MastThera)
Mast Therapeutics™ and the corporate logo are trademarks of Mast
Therapeutics, Inc.
Forward Looking Statements
Mast Therapeutics cautions you that statements included in this
press release that are not a description of historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that are based on the
Company's current expectations and assumptions. Such
forward-looking statements may be identified by the use of
forward-looking words such as "intend," "plan," "anticipate,"
"believe," "expect," among others, and include, but are not limited
to, statements relating to the closing of public offering of the
Company's securities and the Company's intended use of proceeds
from the offering. There are a number of factors that could
cause or contribute to material differences between actual events
or results and the expectations indicated by the forward-looking
statements. These factors include, but are not limited to: market
and other conditions that affect whether and when the public
offering may be completed; the inherent uncertainty of outcomes in
ongoing and future studies of the Company's product candidates and
the risk that its product candidates, including vepoloxamer, may
not demonstrate adequate safety, efficacy or tolerability in one or
more such studies, including EPIC; delays in the commencement or
completion of clinical studies, including as a result of
difficulties in obtaining regulatory agency agreement on clinical
development plans or clinical study design, opening trial sites,
enrolling study subjects, manufacturing sufficient quantities of
clinical trial material, being subject to a "clinical hold," and/or
suspension or termination of a clinical study, including due to
patient safety concerns or lack of funding; delays in clinical
study closeouts, including blinded data review and quality
assurance procedures; the risk that, even if current and planned
clinical studies are successful, the FDA or other regulatory
agencies may determine they are not sufficient to support a new
drug application; the potential that, even if clinical studies of a
product candidate in one indication are successful, clinical
studies in another indication may not be successful; the Company's
dependence on third parties to assist with important aspects of
development of its product candidates, including conduct of its
clinical studies and supply and manufacture of clinical trial
material, and, if approved, commercial product, and the risk that
such third parties may fail to perform as expected; the risk that
the Company may be required to repay its outstanding debt
obligations on an accelerated basis and/or at a time that could be
detrimental to its financial condition, operations and/or business
strategy; risk associated with the Company's ability to manage
operating expenses and/or obtain additional funding to support its
operations on a timely basis or on acceptable terms, or at all; the
potential for the Company to delay, reduce or discontinue current
and/or planned development activities, including clinical studies,
or partner its product candidates at inopportune times if it is
unable to raise sufficient additional capital as needed; the risk
that, even if the Company successfully develops a product candidate
in one or more indications, it may not realize commercial success
and may never achieve profitability; the risk that the Company is
not able to obtain and maintain effective patent coverage or other
market exclusivity protections for its products, if approved,
without infringing the proprietary rights of others; and other
risks and uncertainties more fully described in the Company's press
releases and periodic filings with the Securities and Exchange
Commission. The Company's public filings with the Securities and
Exchange Commission are available at www.sec.gov.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date when made. Mast
Therapeutics does not intend to revise or update any
forward-looking statement set forth in this press release to
reflect events or circumstances arising after the date hereof,
except as may be required by law.
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SOURCE Mast Therapeutics, Inc.