GERMANTOWN, Md., Jan. 22, 2020 /PRNewswire/ -- Seneca
Biopharma, Inc. (Nasdaq: SNCA), a clinical-stage biopharmaceutical
company developing novel treatments for various diseases of high
unmet medical need, today announced the closing of the previously
announced agreement by several accredited investors to exercise
certain warrants to purchase up to an aggregate of 5,555,554 shares
of common stock having an exercise price of $2.70 issued by the company on July 30, 2019, at a reduced exercise price of
$1.36 per share.
The shares of common stock issuable upon exercise of the
warrants were registered pursuant to a registration statement on
Form S-1 (File No. 333-232273) which became effective by the
Securities and Exchange Commission (SEC) on July 25, 2019. The gross proceeds to the company
from the exercise of the warrants are approximately $7.55 million, prior to deducting placement agent
fees and estimated offering expenses.
H.C. Wainwright & Co. acted as the exclusive placement agent
for the offering.
In consideration for the immediate exercise of the warrants for
cash, the exercising holders received new unregistered warrants to
purchase shares of common stock in a private placement pursuant to
Section 4(a)(2) of the Securities Act of 1933, as amended (the
"1933 Act"). The warrants will be exercisable into an
aggregate of up to 5,555,554 shares of common stock, at an exercise
price of $1.23 per share, 2,777,777
of which have a term of exercise equal to two years and 2,777,777
of which have a term of exercise equal to five years.
Seneca intends to use the net
proceeds from the offering as working capital for general business
purposes, including continued development of SNCA's stem cell
assets and seeking partnership opportunities, as well as pursuing
the in-licensing or acquisition of new innovative medicines to
strengthen the company's pipeline.
The new warrants described above were offered in a private
placement pursuant to an applicable exemption from the registration
requirements of the 1933 Act and, along with the shares of common
stock issuable upon their exercise, have not been registered under
the 1933 Act, and may not be offered or sold in the United States absent registration with the
SEC or an applicable exemption from such registration requirements.
The securities were offered only to accredited investors. The
company agreed to file a registration statement with the SEC
covering the resale of the shares of common stock issuable upon
exercise of the new warrants.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy 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 the registration or
qualification under the securities laws of any such state or
jurisdiction.
About Seneca Biopharma, Inc.
Seneca Biopharma, Inc., is a clinical-stage biopharmaceutical
company developing novel treatments for various diseases of high
unmet medical need. The Company is in the process of transforming
the organization through the acquisition or in-licensing of new
science and technologies, to develop with the goal of providing
meaningful therapies for patients.
Cautionary Statement Regarding Forward Looking
Information:
This news release contains "forward-looking statements" made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
relate to future, not past, events and may often be identified by
words such as "expect," "anticipate," "intend," "plan," "believe,"
"seek" or "will." Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. Specific
risks and uncertainties that could cause our actual results to
differ materially from those expressed in our forward-looking
statements include the completion of the offering, including
the satisfaction of the closing conditions, and the use of
anticipated proceeds, risks inherent in the development and
commercialization of potential products, uncertainty of clinical
trial results or regulatory approvals or clearances, market
conditions, need for future capital, dependence upon collaborators
and maintenance of our intellectual property rights. Actual results
may differ materially from the results anticipated in these
forward-looking statements. Additional information on potential
factors that could affect our results and other risks and
uncertainties are detailed from time to time in Seneca's periodic reports, including its
Annual Report on Form 10-K for the year ended December 31, 2018, as well as our Quarterly
Reports on Form 10-Q, filed with the Securities and Exchange
Commission (SEC), and in other reports filed with the SEC. We do
not assume any obligation to update any forward-looking statements,
except as required by law.
Contact:
Hibiscus Bioventures
josh@hibiscusbio.com
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SOURCE Seneca Biopharma, Inc.