Filed
pursuant to Rule 424(b)(5)
Registration No. 333-226100
Prospectus Supplement
(to Prospectus dated July 18, 2018)
11,600,000 Shares
of Common Stock
We are offering 11,600,000 shares of our
common stock, $0.0001 par value per share, directly to a small number of institutional investors pursuant to this prospectus supplement
and the accompanying prospectus. The offering price of the shares is $0.58. In a concurrent private placement, we are also selling
to the investors warrants to purchase an aggregate of up to 8,700,000 shares of our common stock at an exercise price of $0.70
per share. The private placement warrants will be exercisable commencing on the later of (i) six months from the date of issuance
or (ii) the date that our stockholders approve either an increase in the number of authorized shares of our common stock or a reverse
stock split, in either case in an amount sufficient to permit the exercise in full of all of the warrants, and will expire on the
five year anniversary of the date on which they are first exercisable. The private placement warrants and the shares of common
stock issuable upon the exercise of such warrants are not being registered under the Securities Act of 1933, as amended, or the
Securities Act, are not being offered pursuant to this prospectus supplement and the accompanying prospectus, and are being offered
pursuant to an exemption from the registration requirements of the Securities Act provided in Section 4(a)(2) of the Securities
Act and Rule 506(b) promulgated thereunder.
Our common stock is listed on The NASDAQ
Capital Market under the symbol “ADMP.” On February 20, 2020, the last reported sale price of our common stock on The
Nasdaq Capital Market was $0.69 per share.
Investing in our common stock involves
a high degree of risk. Before buying any of our securities, you should carefully read “Risk Factors” on page S-10 of
this prospectus supplement, and under similar headings in the other documents that are incorporated by reference into this prospectus
supplement and the accompanying prospectus.
We have engaged Maxim Group LLC to act
as our exclusive placement agent in connection with this offering to use its reasonable best efforts to place the shares of common
stock offered by this prospectus supplement. We have agreed to pay the placement agent the fees set forth in the table below.
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Per
Share
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Total
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Offering price
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$
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0.58
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$
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6,728,000
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Placement agent’s fees (1)
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$
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0.0348
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$
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403,680
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Proceeds, before expenses, to us
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$
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0.5452
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$
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6,324,320
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(1)
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In addition, we have agreed to reimburse the placement agent for certain offering-related expenses. See “Plan of Distribution.”
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Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement
and the accompanying prospectus are truthful or complete. Any representation to the contrary is a criminal offense.
Delivery of the shares of common stock being
offered pursuant to this prospectus supplement and the accompanying prospectus is expected to be made on or about February 25,
2020, subject to customary closing conditions.
Placement
Agent
MAXIM
GROUP LLC
The date of this prospectus supplement
is February 21, 2020
TABLE OF CONTENTS
Prospectus Supplement
Prospectus
No dealer, salesperson or other person
is authorized to give any information or to represent anything not contained in this prospectus supplement or the accompanying
prospectus. You must not rely on any unauthorized information or representations. This prospectus supplement and the accompanying
prospectus are an offer to sell only the securities offered hereby, but only under circumstances and in jurisdictions where it
is lawful to do so. The information contained in this prospectus supplement and the accompanying prospectus is current only as
of their respective dates.
You should rely only on this prospectus
supplement, the accompanying prospectus and the information incorporated or deemed to be incorporated by reference in this prospectus
supplement and the accompanying prospectus. We have not authorized anyone to provide you with information that is in addition to
or different from that contained or incorporated by reference in this prospectus supplement and the accompanying prospectus. If
anyone provides you with different or inconsistent information, you should not rely on it. This prospectus supplement, the accompanying
prospectus and any related free writing prospectus, if any, do not constitute an offer to sell or the solicitation of an offer
to buy securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.
You should not assume that the information contained or incorporated by reference in this prospectus supplement or the accompanying
prospectus is accurate as of any date other than as of the date of this prospectus supplement or the accompanying prospectus, as
the case may be, or in the case of the documents incorporated by reference, the date of such documents regardless of the time of
delivery of this prospectus supplement and the accompanying prospectus or any sale of our securities. Our business, financial condition,
liquidity, results of operations and prospects may have changed since those dates.
ABOUT THIS PROSPECTUS SUPPLEMENT
This prospectus supplement is part of the
registration statement on Form S-3 that we filed with the Securities and Exchange Commission, or the SEC, using a “shelf”
registration process to register sales of our securities, under the Securities Act of 1933, as amended, or the Securities Act,
and was declared effective by the SEC on July 18, 2018. This document consists of two parts. The first part is this prospectus
supplement, including the documents incorporated by reference, which describes the specific terms of this offering. The second
part is the accompanying prospectus filed with the SEC as part of the registration statement that was declared effective by the
SEC, including the documents incorporated by reference, that gives more general information, some of which
may not apply to this offering. Generally, when we refer only to the “prospectus,” we are referring to both parts combined.
This prospectus supplement may add to, update or change information in the accompanying prospectus and the documents incorporated
by reference into this prospectus supplement or the accompanying prospectus. We sometimes refer to the shares of common stock offered
hereby as the “securities.”
This prospectus supplement may add, update
or change information contained in the accompanying prospectus. To the extent there is a conflict between the information contained
in this prospectus supplement and the accompanying prospectus, you should rely on information contained in this prospectus supplement.
If information in this prospectus supplement is inconsistent with any document incorporated by reference that was filed with the
SEC before the date of this prospectus supplement, you should rely on this prospectus supplement, provided that if any statement
in, or incorporated by reference into, one of these documents is inconsistent with a statement in another document having a later
date, the statement in the document having the later date modifies or supersedes the earlier statement. Any statement so modified
will be deemed to constitute a part of this prospectus only as so modified, and any statement so superseded will be deemed not
to constitute a part of this prospectus. This prospectus supplement, the accompanying prospectus and the documents incorporated
into each by reference include important information about us, the securities being offered and other information you should know
before investing in our securities. You should also read and consider information in the documents to which we have referred you
in the section of this prospectus entitled “Where You Can Find More Information.”
We further note that the representations,
warranties and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference
into this prospectus supplement or the accompanying prospectus were made solely for the benefit of the parties to such agreement,
including, in some cases, for the purpose of allocating risk among the parties to such agreements, and should not be deemed to
be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate only as
of the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing
the current state of our affairs.
Unless otherwise indicated, all information
contained or incorporated by reference in this prospectus supplement and the accompanying prospectus concerning our industry in
general or any portion thereof, including information regarding our general expectations and market opportunity, is based on management’s
estimates using internal data, data from industry related publications, consumer research and marketing studies and other externally
obtained data.
Unless the context indicates otherwise,
as used in this prospectus supplement, the terms “Adamis,” “the Company,” “the company,” “we,”
“us” and “our” refer to Adamis Pharmaceuticals Corporation and its subsidiaries. The Adamis Pharmaceuticals
logo and other trade names, trademarks or service marks of Adamis Pharmaceuticals Corporation appearing in this prospectus supplement
are the property of Adamis. All other trade names, trademarks or service marks appearing in this prospectus supplement are the
property of their respective owners. We do not intend our use or display of other companies’ trade names, trademarks or service
marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies.
CAUTIONARY NOTE REGARDING FORWARD LOOKING
STATEMENTS
This prospectus supplement
contains “forward-looking statements” that involve substantial risks and uncertainties. All statements other than statements
of historical facts contained in this prospectus supplement, including statements regarding our future results of operations and
financial position, strategy and plans, are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act
of 1934, as amended, or the Exchange Act. We have attempted to identify forward-looking statements by terminology including “anticipates,”
“believes,” “can,” “continue,” “could,” “estimates,” “expects,”
“intends,” “may,” “plans,” “potential,” “predicts,” “should,”
or “will” or the negative of these terms or other comparable terminology. Such statements are not historical facts,
but are based on our current expectations, estimates and beliefs about our business and industry. Such forward-looking statements
may include, without limitation, statements about our strategies, objectives and our future achievements; our expectations for
growth; estimates of future revenue; our sources and uses of cash; our liquidity needs; our current or planned clinical trials
or research and development activities; anticipated completion dates for clinical trials; product development timelines; anticipated
dates for commercial introduction of products; our future products; regulatory matters; our expectations concerning the timing
of regulatory approvals; anticipated dates for meetings with regulatory authorities and submissions to obtain required regulatory
marketing approvals; expense, profit, cash flow, or balance sheet items or any other guidance regarding future periods; and other
statements concerning our future operations and activities. Such forward-looking statements include those that express plans, anticipation,
intent, contingencies, goals, targets or future development and/or otherwise are not statements of historical fact. These forward-looking
statements are based on our current expectations and projections about future events, and they are subject to risks and uncertainties,
known and unknown, that could cause actual results and developments to differ materially from those expressed or implied in such
statements. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this
prospectus supplement, accompanying prospectus and the documents incorporated by reference herein.
The following factors,
among others, could cause our future results and financial performance to differ materially from that expressed in forward-looking
statements in this prospectus supplement:
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our need to raise additional capital;
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our ability to continue as a going concern;
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the commercial success of our SYMJEPI™
(epinephrine) Injection 0.3mg and 0.015mg products and amounts that we may receive with respect to sales of such products;
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future actions by the U.S. Food and
Drug Administration and other regulatory agencies regarding our product candidates and our regulatory filings relating to our
product candidates, including without limitation concerning our ZIMHI New Drug Application;
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the success of our product development
programs and research;
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our future development plans concerning
our product candidates, and ongoing and planned preclinical or clinical trials for our product candidates, including the timing
of initiation of these trials, the timing of progress of those trials, anticipated completion dates of trials, and the results
of any such trials;
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the timing of, or delay in the timing
of, commercial introduction of any of our products;
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our ability to enter into collaborations
and agreements for the development and commercialization of our products and product candidates, and the potential benefits of
any future commercialization or collaboration agreements with third parties;
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regulatory and personnel issues;
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the ability to generate significant revenue
in addition to the sale of our compounded medications and preparations;
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competition and market developments;
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the failure of any of our product candidates,
if approved, to achieve commercial success;
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our ability to protect our intellectual
property from infringement by third parties;
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regulatory and health reform legislation
and regulations;
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the introduction of technological innovations
or new commercial products by our competitors;
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the outcome of any legal proceedings in
which we are involved or in which we may in the future become involved;
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federal and state regulatory matters relating
to compounding pharmacy outsourcing facilities; and
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other risks and uncertainties detailed
from time to time in our filings with the Securities and Exchange Commission.
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In addition,
many forward-looking statements concerning our anticipated future business activities assume that we are able to obtain sufficient
funding to support such activities and continue our operations and planned activities. As discussed elsewhere in this prospectus
supplement, we require additional funding to continue operations, and there are no assurances that such funding will be available.
Failure to timely obtain required funding would adversely affect and could delay or prevent our ability to realize the results
contemplated by such forward looking statements. New factors emerge from time to time, and it is not possible for us to predict
which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Forward-looking statements
should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times
at, or by which, that performance or those results will be achieved. Forward-looking statements are based on information available
at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject
to risks and uncertainties that could cause actual performance or results to differ materially from what is expressed in or suggested
by the forward-looking statements.
Forward-looking statements
speak only as of the date they are made. You should not put undue reliance on any forward-looking statements. We assume no obligation
to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking
information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements,
no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights
selected information about our company, this offering and information appearing elsewhere in this prospectus supplement, in the
accompanying prospectus, and in the documents we incorporate by reference. This summary is not complete and does not contain all
the information that you should consider before investing in our common stock. You should read this entire prospectus supplement
and the accompanying prospectus carefully, including the “Risk Factors” contained in this prospectus supplement beginning
on page S-10, and the risk factors, financial statements and notes incorporated by reference herein, before making an investment
decision. This prospectus supplement may add to, update or change information in the accompanying prospectus.
Company Overview
Adamis Pharmaceuticals Corporation is a
specialty biopharmaceutical company focused on developing and commercializing products in various therapeutic areas, including
respiratory disease, allergy and opioid overdose. Our products and product candidates in the allergy, respiratory, and opioid
overdose markets include: SYMJEPI™ (epinephrine) Injection 0.3mg, which was approved by the U.S. Food and Drug Administration,
or FDA, in 2017 for use in the emergency treatment of acute allergic reactions, including anaphylaxis; SYMJEPI (epinephrine) Injection
0.15mg which was approved by the FDA in September 2018, for use in the treatment of anaphylaxis for patients weighing 33-66 pounds;
a naloxone injection product candidate, ZIMHI™ or APC-6000, based on the approved Symject™ injection device and intended
for the treatment of opioid overdose for which the company submitted a New Drug Application, or NDA, to the FDA in December 2018
and with respect to which the company received a Complete Response Letter, or CRL, from the FDA in November 2019; a beclomethasone
metered dose inhaler product candidate (APC-1000) intended for the treatment of asthma for which the company submitted an Investigational
New Drug application, or IND, in January 2018 and initiated the start-up phase of Phase 3 studies; and a fluticasone (APC-4000)
dry powder inhaler, or DPI, product candidate for the treatment of asthma. Our goal is to create low cost therapeutic alternatives
to existing treatments. Consistent across all specialty pharmaceuticals product lines, we intend to submit NDAs under Section
505(b)(2), of the U.S. Food, Drug & Cosmetic Act, as amended, or FDCA, or Section 505(j) Abbreviated New Drug Applications,
or ANDAs, to the FDA, whenever possible, in order to potentially reduce the time to market and to save on costs, compared to those
associated with Section 505(b)(1) NDAs for new drug products.
Our U.S. Compounding, Inc., subsidiary,
or USC, which we acquired in April 2016 and which is registered as a drug compounding outsourcing facility under Section 503B
of the FDCA and the U.S. Drug Quality and Security Act, or DQSA, provides prescription compounded medications, including compounded
sterile preparations and nonsterile compounds, to patients, physician clinics, hospitals, surgery centers and other clients throughout
most of the United States. USC’s product offerings broadly include, among others, corticosteroids, hormone replacement
therapies, hospital outsourcing products, and injectables. USC also provides compounded pharmaceutical products for animals.
To achieve our goals and support our overall
strategy, we will need to raise a substantial amount of funding and make significant investments in, among other things, product
development and working capital.
The current status of our development programs
is as follows:
Product Portfolio
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Specialty Pharmaceutical Products
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Target Indication
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Status
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SYMJEPI (epinephrine) Injection 0.3mg
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Anaphylaxis
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FDA Approved, June 2017
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SYMJEPI (epinephrine) Injection 0.15mg
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Anaphylaxis
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FDA Approved, September 2018
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ZIMHI (naloxone) Injection (APC-6000)
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Opioid Overdose
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Submitted NDA
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Metered Dose Inhaler Product
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Beclomethasone (APC-1000)
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Asthma
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Phase 3 ready (1)
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Dry Powder Inhaler Product
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Fluticasone (APC-4000)
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Asthma
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Phase 3 ready (2)
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(1)
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The start-up phase of a Phase 3 study was initiated, but enrollment and the study has been suspended in light of among other factors, the availability of adequate funding to continue and complete the studies.
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(2)
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Represents the next anticipated development or
regulatory stage for the product candidate that we may pursue following completion of product development, assuming that we
have the financial resources to pursue any of these opportunities. There are no assurances that we will pursue these
opportunities, for financial or other reasons. Following completion of product development, one or more Phase 3 trials,
without previous Phase 1 or Phase 2 trials, is the anticipated next product development stage. Additional trials, such as
pharmacokinetic, or PK, and/or dose escalation studies, may be conducted in connection with the Phase 3 trials.
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Anaphylaxis; Epinephrine Pre-Filled Syringe
On June 15, 2017, the FDA approved
the company’s SYMJEPI (epinephrine) Injection 0.3mg product for the emergency treatment of allergic reactions (Type I) including
anaphylaxis. SYMJEPI (epinephrine) Injection 0.3mg is intended to deliver a dose of epinephrine, which is used for emergency, immediate
administration in acute anaphylactic reactions to insect stings or bites, allergic reaction to certain foods, drugs and other allergens,
as well as idiopathic or exercise-induced anaphylaxis for patients weighing 66 pounds or more. On September 27, 2018,
FDA approved our lower dose SYMJEPI (epinephrine) Injection 0.15mg, for the emergency treatment of allergic reactions (Type I)
including anaphylaxis in patients weighing 33 to 66 pounds.
In July 2018, we entered into a
Distribution and Commercialization Agreement with Sandoz Inc., a division of Novartis AG, to commercialize both of our
SYMJEPI products. Under the terms of the agreement, we appointed Sandoz as the exclusive distributor of SYMJEPI in the
United States and related territories, or the Sandoz Territory, in all fields including both the retail market and other
markets, and granted Sandoz an exclusive license under our patent and other intellectual property rights and know-how to
market, sell, and otherwise commercialize and distribute the product in the Sandoz Territory, subject to the provisions of
the agreement, in partial consideration of an upfront fee by Sandoz and potential performance-based milestone
payments. The agreement provides that Sandoz will pay to us 50% of the Net Profit from Net Sales, as each such term is
defined in the agreement, of the product in the Sandoz Territory to third parties, determined on a quarterly basis. We will
be the supplier of the product to Sandoz, and Sandoz will order and pay us a supply price for quantities of products ordered.
We will be responsible for all manufacturing and, prior to Sandoz paying the supply price, the component and supply costs
related to manufacturing and supplying the product to Sandoz. The agreement does not include minimum payments to
us by Sandoz, minimum requirements for sales of product by Sandoz or, with certain exceptions, minimum purchase commitments
by Sandoz. Under the agreement, Sandoz has sole discretion in determining pricing, terms of sale, marketing, and selling
decisions relating to the product. On January 16, 2019, we announced that Sandoz had launched SYMJEPI
(epinephrine) 0.3mg Injection in the U.S. market, initially available in the institutional setting. On July 9, 2019, we
announced the full launch (institutional and retail) by Sandoz of both dose forms of the SYMJEPI injection
products.
Opioid Overdose
ZIMHI (naloxone) Injection, APC-6000. Naloxone is an
opioid antagonist used to treat narcotic overdoses. Naloxone, which is generally considered the drug of choice for immediate administration
for opioid overdose, blocks or reverses the effects of the opioid, including extreme drowsiness, slowed breathing, or loss of consciousness.
Common opioids include morphine, heroin, tramadol, oxycodone, hydrocodone and fentanyl.
On December 31, 2018, we filed an
NDA with the FDA relating to our higher dose naloxone injection product, ZIMHI, for the treatment of opioid
overdose. On November 22, 2019, we received a Complete Response Letter, or CRL, from the FDA regarding our NDA for
ZIMHI. The CRL stated that the FDA determined that it could not approve the NDA in its present form and provided
recommendations needed for resubmission. A CRL is issued by the FDA’s Center for Drug Evaluation and
Research when it has completed its review of a file and questions remain that preclude the approval of the NDA in its current
form. The questions raised by the FDA related generally to Chemistry, Manufacturing and Controls (CMC). No other
clinical safety or efficacy issues were raised. In December 2019, we provided responses to the FDA to the comments
included in the CRL. In February 2020, we had a Type A meeting with the FDA to discuss the company’s response to
the CRL and the process and timeline for resubmission of the NDA to the FDA. At the meeting, the Company obtained
concurrence from the agency on the CMC information required for resubmission of the NDA, including additional information
involving extractables and leachables testing from the syringe and glassware. The company believes it can generate the
additional information and, assuming successful testing, resubmit the NDA in the second quarter of 2020. The FDA’s
review processes can extend beyond, and in some cases significantly beyond, anticipated completion dates due to the timing of
the FDA’s review process, FDA requests for additional data, information, materials or clarification, difficulties
scheduling an advisory committee meeting, FDA workload issues, extensions resulting from the submission of additional
information or clarification regarding information already in the submission within the last three months of the target
Prescription Drug User Fee Act date, or other reasons. As a result, the dates of FDA review of any resubmitted NDA, for
regulatory approval, if obtained, and commercial introduction of our product could be delayed beyond our expectations.
Asthma and Bronchospasm
According to
the National Institute of Health, asthma is a chronic lung disease that inflames and narrows the airways. Asthma
causes recurring periods of wheezing, chest tightness, shortness of breath, and coughing. Asthma affects people of all ages,
but it most often starts during childhood. According to information published by Centers for Disease Control &
Prevention, reporting on findings from 2017, the number of people in the U.S. with asthma is approximately 25.2
million and growing. We estimate that global sales of asthma and bronchospasm prescription products were in excess of
approximately $8.1 billion in 2018, based on industry data.
Asthma; APC-1000 Metered Dose Inhaler.
Our APC-1000 product candidate is a steroid hydrofluoroalkane, or HFA, metered dose inhaler product, intended for the treatment
of asthma. Our product candidate, if developed and approved for marketing, will target a small niche within the larger market for
respiratory products. We estimate that the annual global sales of prescription steroid HFA and similar products were approximately
$2.7 billion in 2018, of which we intend to target a subset of that market. In January 2018, we submitted an IND
application to the FDA to begin Phase 3 efficacy studies for a new formulation of APC-1000. We received approval from the agency
to proceed with the Phase 3 studies, and in December 2018, we initiated the start-up phase of the phase 3 studies of APC-1000.
However, we have delayed the continuation of the start-up phase and start of patent enrollment for the studies in light of, among
other factors, the availability of adequate funding to continue and complete the studies. The timing of enrollment for, and
the pace of conduct, progress, and completion of, such studies, and our decisions concerning such matters, are affected by a number
of factors, including without limitation the availability of adequate funding, the absence of unexpected regulatory issues or delays,
the time period required to enroll a sufficient number of patients in the study, and the time required to complete and analyze
the results of the studies.
Dry Powder Inhaler (DPI) Device
Platform. In December 2013, we acquired assets relating to The 3M Company’s, or 3M’s, patented Taper dry
powder inhaler (DPI) technology under development by 3M for the treatment of asthma and bronchospasm. The Taper DPI
technology was designed to efficiently deliver dry powder by utilizing a 3M proprietary microstructured carrier tape. We are
utilizing the Taper DPI assets to develop the DPI device. We believe that, if successfully developed, the device can be
utilized to deliver a variety of different drug compounds and be used as a platform delivery device to develop products that
will compete in the respiratory markets, which may include combination products. Our agreement with 3M contemplates that the
microstructured carrier tape will be supplied by 3M under a separate commercial supply agreement to be negotiated with
3M.
We believe that one advantage of the technology
is that it can deliver drug particles without the need for lactose or formulation excipients. The majority of current dry powder
products use lactose carrier excipients to enhance flowability; however, they have the disadvantage of increased bulk and require
a mechanism for detaching the drug from the surface of the lactose. Lactose carrier formulations require a complicated blending
process and delivery that is highly sensitive to excipient powder properties. To our knowledge, there are currently no excipient-free
dry powder inhalers in the U.S. market.
Asthma; Fluticasone. Our first
product candidate utilizing the DPI technology platform, APC-4000, will deliver Fluticasone Propionate (fluticasone) as a dry powder
formulation for the treatment of asthma. Fluticasone belongs to the family of medicines known as corticosteroids or steroids. It
works by preventing certain cells in the lungs and breathing passages from releasing substances that cause asthma symptoms. APC-4000
is designed to deliver the same active ingredient as GlaxoSmithKline’s Flovent® Diskus® for the treatment of asthma.
We estimate that Flovent® Diskus® generated more than $443 million in U.S. sales and $791 million in global sales in 2018,
based on GSK’s publicly announced results. We conducted a proof of concept study with the DPI for APC-4000 in 2018. Assuming
sufficient funding and successful development, we may conduct one or more additional proof of concept studies for APC-4000 during
2020.
Our development plans concerning
our allergy and respiratory products, including APC-1000 and APC-4000, and our other product candidates are affected by
developments in the marketplace, including the introduction of potentially competing new products by our competitors. As a
result, our product development plans could be affected by such considerations. The anticipated dates for development and
introduction of products in our product pipeline will depend on a number of factors, including the availability of adequate
funding to support product development efforts and, should we choose to seek commercialization partners for one or more of
our products or product candidates, our success in negotiating and entering into development or commercialization agreements
relating to our products. We believe that should we decide to pursue such applications, we would be required to submit data
for an application for approval to market APC-1000 and APC-4000 pursuant to Section 505(b)(2) of the FDCA, although there are
no assurances that this will be the case. In considering development and commercialization alternatives for our
products and product candidates and technologies, we may seek to enter into development or commercialization agreements,
license agreements, or other strategic agreements with third parties relating to development, commercialization and marketing
of one or more of our products or product candidates. Factors that could affect the development and launch dates for our
products and product candidates include general market conditions, the outcome of discussions with the FDA concerning the
regulatory approval pathway of the applicable product candidate including the number and kind of clinical trials that the FDA
will require before the FDA will consider regulatory approval of the applicable product, any unexpected difficulties in
licensing or sublicensing intellectual property rights that may be required for other components of the product, patent
infringement lawsuits relating to Paragraph IV certifications as part of any Section 505(b)(2) or ANDA filings, any
unexpected difficulties in the ability of our suppliers to timely supply quantities for commercial launch of the product, any
unexpected delays or difficulties in assembling and deploying an adequate sales force to market the product, and receipt of
adequate funding to support product development and sales and marketing efforts.
Prescription Compounded Medications
Overview. Our USC
subsidiary, which is registered as a drug compounding outsourcing facility under Section 503B of the FDCA and the DQSA,
provides prescription compounded medications, including compounded sterile preparations or CSPs, and non-sterile compounds to
physician clinics, hospitals, surgery centers and other clients throughout most of the United States. USC’s product
offerings broadly include, among others, corticosteroids, hormone replacement therapies, hospital outsourcing products, and
injectables. USC also provides compounded pharmaceutical products for animals. USC sources raw materials and commercial
products only from suppliers registered with the FDA. Utilizing these raw material components, USC prepares and provides a
broad range of customized stock keeping units to meet the individual requirements of customers located throughout most of the
United States. USC’s business is focused on marketing a portfolio of compounded preparations for hospital
outsourcing, animal health, including sterile injectable and non-sterile integrative therapies. Many of these
formulations are offered in different formats than other available alternatives, such as in suspension or preservative free.
Many hospitals and surgery centers look to outsourcing facilities to obtain medications in ready-to-use, or RTU, format, with
the specific packaging, volume, and strength often unique to individual facilities. Many facilities and outsourcing
facilities when medications are on temporary backorder from the manufacturer or are discontinued. Compounding pharmacies and
outsourcing facilities combine different ingredients, some of which may be FDA-approved drugs or components of FDA-approved
drugs, to create specialized preparations prescribed by a physician. Examples of compounded formulations include medications
with alternative dosage strengths or unique dosage forms, such as topical creams or gels, suspensions, or solutions with more
tolerable drug delivery vehicles. A physician may also work together with a pharmacist to repurpose or reformulate
FDA-approved drugs via the compounding process to meet a patient’s specific medical needs. These compounds are
distributed to hospitals, surgery centers, and practitioners. Examples of compounded medications prepared by outsourcing
facilities include sterile syringes used by hospital and surgery center operating rooms, sterile injectables administered by
the practitioner in the office, and unit-dosed sterile and non-sterile medications.
The pharmacy sterile compounding industry
arose in part because hospitals and other healthcare providers administering drugs require concentrations, dosage forms and delivery
systems that are not readily commercially available from drug manufacturers in a RTU form. Historically, safety
and quality standards for compounded medications were not well defined or implemented, leading to demand for safer compounding
practices, and the level of state regulation varied significantly. The 2012 nationwide fungal meningitis outbreak caused by a compounding
pharmacy led to increased regulatory oversight of the industry which, among other things, led to the passage of the DQSA and its
creation of Section 503B outsourcing facilities as a new, more highly FDA-regulated category of interstate outsourced CSP providers.
Registration as a Section 503B outsourcing facility is currently voluntary. USC was incorporated in Arkansas in 2004 and registered
with the FDA as a Section 503B outsourcing facility in December 2013.
Since we acquired USC in April 2016,
we have invested capital and taken several measures intended to support the growth of the business including hiring additional
personnel, expanding sales channels, and strengthening our production processes, to comply with new and anticipated FDA regulations
applicable to its business and outsourcing facilities, to expand product offerings, enhance production capabilities, improve warehouse
space, develop new packaging, labeling and processing solutions, refine quality and safety measures, and develop technology for
the intake and management of customer orders.
Corporate Information
We are incorporated
under the laws of the State of Delaware. Our principal executive offices are located at 11682 El Camino Real, Suite 300, San Diego,
CA 92130, and our telephone number is (858) 997-2400. Our website address is: www.adamispharmaceuticals.com. We have included
our website address as a factual reference and do not intend it to be an active link to our website. The information that can
be accessed through our website is not part of this prospectus, and investors should not rely on any such information in deciding
whether to purchase our securities.
THE OFFERING
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Common stock offered by us in this offering
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11,600,000 shares
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Offering price per share
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$0.58
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Common stock outstanding immediately before this offering
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61,829,508 shares
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Common stock outstanding immediately after this offering (excluding the shares underlying the private placement warrants)
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73,429,508 shares
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Use of proceeds
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We intend to use the net proceeds from this offering for general corporate purposes, which may include, without limitation, expenditures relating to research, development and clinical trials relating to our products and product candidates, manufacturing, capital expenditures, hiring additional personnel, acquisitions of new technologies or products, the payment, repayment, refinancing, redemption or repurchase of existing or future indebtedness, obligations or capital stock, and working capital. We may also use the proceeds to acquire or invest in complementary products, services, technologies or other assets, although we have no agreements or understandings with respect to any acquisitions or investments at this time.
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Risk factors
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An investment in our common stock involves substantial risks. You should read carefully the “Risk Factors” included and incorporated by reference in this prospectus, including the risk factors incorporated by reference from our filings with the SEC.
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Nasdaq Capital Market symbol for common stock
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“ADMP”
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Concurrent private placement
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In a concurrent private placement, we are
selling to the purchasers of shares of our common stock in this offering warrants to purchase 8,700,000 shares of our common
stock at an exercise price of $0.70 per share. We will receive gross proceeds from the concurrent private placement
transaction solely to the extent such warrants are exercised for cash. The warrants and the shares of our common stock
issuable upon the exercise of the warrants are not being offered pursuant to this prospectus supplement and the accompanying
prospectus. See “Private Placement Transaction.”
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The number of shares of our common stock
that will be outstanding immediately after this offering as shown above is based on 61,829,508 shares outstanding as of December
31, 2019, and excludes:
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7,837,245 shares of common stock issuable upon exercise of outstanding
stock options under our equity incentive plans as of December 31, 2019, with exercise prices ranging from $2.50 to $11.39 and having
a weighted average exercise price of $4.40 per share, and 3,090,397 shares issuable upon the vesting of restricted
stock units outstanding as of December 31, 2019, awarded under our equity incentive plans;
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warrants
to purchase up to 58,824 shares of common stock, as of December 31, 2019, at an exercise
price of $8.50 per share;
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warrants to purchase up to 1,183,432 shares of common
stock or Series A-1 Preferred Stock, and up to 192,414 shares of common stock or Series A-2 Preferred Stock, at an exercise price
of $4.10 and $2.90 per share, respectively (subject to certain beneficial ownership limitations);
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warrants to purchase up to 700,000 shares of common stock, as of
December 31, 2019, at an exercise price of $2.98 per share;
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warrants to purchase up to 13,800,000 shares of our common
stock, as of December 31, 2019, at an exercise price of $1.15
per share; and
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8,700,000 shares of common stock issuable upon exercise of the warrants
being issued in the concurrent private placement.
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RISK FACTORS
Investing in our
securities involves a high degree of risk. You should carefully consider the risks described below and all of the information contained
or incorporated by reference in this prospectus, including the risk factors described in our Annual Report on Form 10-K for the
year ended December 31, 2018, our subsequent Quarterly Reports on Form 10-Q, and all other information contained or incorporated
by reference into this prospectus supplement and the accompanying base prospectus before deciding whether to purchase the securities
offered hereby. Our business, financial condition, results of operations and prospects could be materially and adversely affected
by these risks.
Risks Related to This Offering
There is substantial doubt about our ability to continue
as a going concern, which may hinder our ability to obtain further financing.
Our consolidated financial statements
are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization
of assets and liquidation of liabilities in the normal course of business. However, as shown in our consolidated financial statements
for the year ended December 31, 2018, and our unaudited financial statements for the nine months ended September 30, 2019, we have
sustained substantial recurring losses from operations. In addition, we have used, rather than provided, cash in our continuing
operations. We will need significant funding to continue operations, satisfy our obligations and fund the future expenditures that
will be required to conduct the clinical and regulatory work to develop our product candidates. Without obtaining additional capital,
it would be unlikely for the company to continue as a going concern. The above conditions raise substantial doubt about our ability
to continue as a going concern. Our consolidated financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts and classification of liabilities that might be necessary should the company be unable
to continue in existence. Uncertainty concerning our ability to continue as a going concern may hinder our ability to obtain future
financing. Continued operations and our ability to continue as a going concern are dependent on the market acceptance and success
of our products and our ability to obtain additional required funding in addition to the net proceeds from this offering, and there
are no assurances that such funding will be available at all or will be available in sufficient amounts or on reasonable terms.
Without additional funds from debt or equity financings, sales of assets, sales or out-licenses of intellectual property or technologies,
or other transactions or sources, we will exhaust our resources and will be unable to continue operations. If we cannot continue
as a viable entity, our stockholders would likely lose most or all of their investment in us.
We will require additional funding to continue as a going
concern.
We incurred net losses of approximately
$39.0 million and $23.6 million for the year ended December 31, 2018 and the nine months ended September 30, 2019, respectively,
and a net loss of approximately $25.5 million for the year ended December 31, 2017. At September 30, 2019, we had cash and
cash equivalents of approximately $12.1 million, accounts receivable of approximately $2.7 million and liabilities of approximately
$12.5 million. The development of our business will require additional funds in addition to the net proceeds of this offering
to help fund the development and commercialization of our products and product candidates and conduct research and development
of other product candidates, as well as to fund capital expenditures and our ongoing operations at USC and satisfy our obligations
and liabilities. In addition to product revenues, we have historically relied upon sales of our equity or debt securities to fund
our operations. We currently have no available balance in our credit facility or committed sources of capital. Delays in obtaining
required funding could adversely affect our ability to develop and commercially introduce products and cause us to be unable to
comply with our obligations under outstanding instruments. Our ability to obtain financing if required will be subject
to a number of factors, including market conditions, our operating performance and investor sentiment. If we are unable to raise
additional capital when required or on acceptable terms, we may have to significantly delay, scale back or discontinue the development
or commercialization of one or more of our product candidates, restrict our operations or obtain funds by entering into agreements
on unattractive terms, which would likely have a material adverse effect on our business, stock price and our relationships with
third parties with whom we have business relationships, at least until additional funding is obtained, and which could result
in additional dilution to our stockholders. If we do not have sufficient funds to continue operations, we could be required to
seek bankruptcy protection or other alternatives that would likely result in our stockholders losing some or all of their investment
in us.
Statements in this prospectus supplement concerning our
future plans and operations are dependent on our ability to secure adequate funding and the absence of unexpected delays or adverse
developments. We may not be able to secure required funding.
The statements contained in this prospectus
supplement and accompanying prospectus concerning future events or developments or our future activities, such as concerning current
or planned clinical trials, anticipated research and development activities, anticipated dates for commencement of clinical trials,
anticipated completion dates of clinical trials, anticipated meetings with the FDA or other regulatory authorities concerning our
product candidates, anticipated dates for submissions to obtain required regulatory marketing approvals, anticipated dates for
commercial introduction of products, and other statements concerning our future operations and activities, are forward-looking
statements that in each instance assume that we have or are able to obtain sufficient funding to support such activities and continue
our operations and planned activities in a timely manner. There can be no assurance that this will be the case. Also, such statements
assume that there are no significant unexpected developments or events that delay or prevent such activities from occurring. Failure
to timely obtain any required additional funding, or unexpected developments or events, could delay the occurrence of such events
or prevent the events described in any such statements from occurring which could adversely affect our business, financial condition
and results of operations.
We have not yet completed our impairment
tests with respect to our financial statements for the year ended December 31, 2019. If we determine that our intangible assets
have become impaired, our total assets and earnings would be adversely affected.
Goodwill represents
the purchase price of acquisitions in excess of the amounts assigned to acquire tangible or intangible assets and assumed liabilities.
Goodwill and indefinite lived intangible assets are not amortized but rather are evaluated for impairment annually as of December
31 each year or more frequently, if indicators of impairment exist. Finite lived intangible assets are evaluated for impairment
annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the impairment
evaluations for goodwill and intangible assets indicate the carrying amount exceeds the estimated fair value, an impairment loss
is recognized in an amount equal to that excess. As of the date of this prospectus supplement, our tests for goodwill impairment
with respect to the year ended December 31, 2019, have not been completed and will not be available until after this offering is
completed. It is possible that as a result of this test an impairment will be recorded in the financial statements that will be
included in our annual report on Form 10-K relating to the year ended December 31, 2019, which we will file after the date of this
prospectus supplement. Any such impairment would adversely affect our total assets and earnings.
Because we will have broad discretion and flexibility
in how the net proceeds from this offering are used, we may use the net proceeds in ways in which you disagree.
We currently intend to use the net proceeds
from this offering for general corporate purposes, which include, without limitation, expenditures relating to research, development
and clinical trials relating to our products and product candidates, capital expenditures, hiring additional personnel, acquisitions
of new technologies or products, payment of obligations, the repayment, refinancing, redemption or repurchase of existing or future
indebtedness or capital stock and working capital. We may also use the proceeds to acquire or invest in complementary products,
services, technologies or other assets, although we have no agreements or understandings with respect to any acquisitions or investments
at this time. See “Use of Proceeds” on page S-17 of this prospectus supplement. Other than as described in the “Use
of Proceeds” section, we have not allocated specific amounts of the net proceeds from this offering for any of the foregoing
purposes. Accordingly, our management will have significant discretion and flexibility in applying the net proceeds of this offering.
You will be relying on the judgment of our management with regard to the use of these net proceeds, and you will not have the opportunity,
as part of your investment decision, to assess whether the net proceeds are being used appropriately. It is possible that the net
proceeds will be invested in a way that does not yield a favorable, or any, return for you. The failure of our management to use
such funds effectively could have a material adverse effect on our business, financial condition, operating results and cash flow.
You will experience immediate and
substantial dilution in the net tangible book value per share of the common stock you purchase.
Since the price per
share of our common stock being offered is substantially higher than the net tangible book value per share of our common stock,
you will suffer immediate and substantial dilution in the net tangible book value of the common stock you purchase in this offering.
Based on an offering price of $0.58 per share, if you purchase shares of common stock in this offering, you will suffer immediate
and substantial dilution of approximately $0.209 per share with respect to the net tangible book value of the common stock. See
the section entitled “Dilution” below for a more detailed discussion of the dilution you will incur if you invest in
this offering.
You may experience future dilution
as a result of future equity offerings and other issuances of our common stock or other securities. In addition, this offering
and future equity offerings and other issuances of our common stock or other securities may adversely affect our common stock price.
In order to raise additional
capital, we may in the future offer additional shares of our common stock or other securities convertible into or exchangeable
for our common stock at prices that may not be the same as the price per share in this offering. We may not be able to sell shares
or other securities in any other offering at a price per share that is equal to or greater than the price per share paid by the
investor in this offering, and investors purchasing shares or other securities in the future could have rights superior to existing
stockholders. The price per share at which we sell additional shares of our common stock or securities convertible into common
stock in future transactions may be higher or lower than the price per share in this offering. In addition, we are issuing warrants
to purchase 8,700,000 shares of common stock in a concurrent private placement. You will incur dilution upon exercise of any outstanding
stock options, warrants or upon the issuance of shares of common stock under our stock incentive programs. In addition, the sale
of shares in this offering and any future sales of a substantial number of shares of our common stock in the public market, or
the perception that such sales may occur, could adversely affect the price of our common stock. We cannot predict the effect, if
any, that market sales of those shares of common stock or the availability of those shares for sale will have on the market price
of our common stock
Our failure to meet the continued listing requirements
of Nasdaq could result in a delisting of our common stock, which could negatively impact the market price and liquidity of our
common shares and our ability to access the capital markets.
Our common stock is listed on the Nasdaq
Capital Market. If we fail to satisfy the continued listing requirements of Nasdaq, such as the corporate governance requirements
or the minimum closing bid price requirement, Nasdaq may take steps to delist our common stock. Such a delisting would have a negative
effect on the price of our common stock and would impair the ability to sell or purchase our common stock when persons wish to
do so.
On October 11, 2019, we received a notice
from Nasdaq that, because the closing bid price of our common stock had been below $1.00 per share for 30 consecutive business
days, we no longer complied with the minimum bid price requirement for continued listing on The Nasdaq Capital Market. Nasdaq
Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share, and Listing Rule 5810(c)(3)(A)
provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive
business days. The Notice has no immediate effect on the listing or the trading of our common stock on The Nasdaq Capital Market.
Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), we have been provided an initial compliance period of 180 calendar days, or
until April 8, 2020, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid
price of our common stock must meet or exceed $1.00 per share for a minimum of 10 consecutive business days during the 180 calendar
day grace period. In the event we are not in compliance with the minimum bid price requirement by April 8, 2020, we may
be afforded a second 180 calendar day grace period. To qualify, we would be required to meet the continued listing requirements
for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception
of the minimum bid price requirement. In addition, we would be required to provide written notice of our intention to cure
the minimum bid price deficiency during this second 180 day compliance period.
In addition, on October 15, 2019, the company
notified The Nasdaq Stock Market that as a result of the resignation of one of its directors from the company’s
board of directors, the company was no longer in compliance with Nasdaq Listing Rule 5605(c)(2)(A), which
requires the company’s Audit Committee to be composed of at least three independent directors. The resignation left the Audit
Committee with two directors. This had no immediate effect on the company’s Nasdaq listing or the trading of its common stock.
In accordance with Nasdaq Listing Rule 5605(c)(4)(B), the company has a cure period to regain compliance with Nasdaq Listing Rule
5605(c)(2)(A), until the earlier to occur of the next annual shareholders meeting or September 30, 2020; provided, however, that
if the annual shareholders meeting is held before March 30, 2020, then the company must evidence compliance no later than March
30, 2020. On October 16, 2019, Nasdaq issued a letter to the company confirming the company’s noncompliance with the audit
committee requirements of Nasdaq Listing Rule 5605 as a result of the resignation and the cure period for the Company to regain
compliance under Nasdaq Listing Rule 5605(c)(4).
The price of our common stock may be volatile.
The market price of our common stock may
fluctuate substantially. For example, from January 1, 2018 to December 31, 2019, the closing market price of our common stock has
fluctuated between $0.48 and $5.10. The price of our common stock that will prevail in the market after this offering may be higher
or lower than the price that you have paid, depending on many factors, some of which are beyond our control and may not be related
to our operating performance. Market prices for securities of early-stage pharmaceutical, biotechnology and other life sciences
companies have historically been particularly volatile. Some of the factors that may cause the market price of our common stock
to fluctuate include:
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relatively low trading volume, which can result in significant volatility
in the market price of our common stock based on a relatively smaller number of trades and dollar amount of transactions;
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the timing and results of our current and any future preclinical or
clinical trials of our product candidates;
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our ability to successfully expand sales of our compounded pharmacy
formulations;
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the entry into or termination of key agreements, including, among
others, key collaboration and license agreements;
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the results and timing of regulatory reviews relating to the approval
of our product candidates;
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the timing of, or delay in the timing of, commercial introduction
of any of our products;
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the initiation of, material developments in, or conclusion of, litigation
to enforce or defend any of our intellectual property rights;
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failure of any of our product candidates, if approved, to achieve
commercial success;
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general and industry-specific economic conditions that may affect
our research and development expenditures;
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the results of clinical trials conducted by others on products that
would compete with our product candidates;
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issues in manufacturing our product candidates or any approved products;
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the loss of key employees;
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the introduction of technological innovations or new commercial products
by our competitors;
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changes in estimates or recommendations by securities analysts, if
any, who cover our common stock;
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future sales of our common stock;
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period-to-period fluctuations in our financial results;
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publicity or announcements regarding regulatory developments relating
to our products;
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period-to-period fluctuations in our financial results, including
our cash and cash equivalents balance, operating expenses, cash burn rate or revenue levels;
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common stock sales in the public market by one or more of our larger
stockholders, officers or directors;
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our filing for protection under federal bankruptcy laws;
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a negative outcome in any litigation or potential legal proceeding;
or
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other potentially negative financial announcements, such as a review
of any of our filings by the SEC, changes in accounting treatment or restatement of previously reported financial results or delays
in our filings with the SEC.
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The stock markets in general have experienced
substantial volatility that has often been unrelated to the operating performance of individual companies. These broad market fluctuations
may also adversely affect the trading price of our common stock. In the past, following periods of volatility in the market price
of a company’s securities, stockholders have often instituted class action securities litigation against those companies.
Such litigation, if instituted, could result in substantial costs and diversion of management attention and resources, which could
significantly harm our profitability and reputation.
Future sales of substantial amounts of our common stock,
or the possibility that such sales could occur, could adversely affect the market price of our common stock.
Future sales in the public market of our
common stock, including shares offered by the prospectus supplement or shares issued upon exercise of our outstanding stock options,
warrants or convertible securities, or the perception by the market that these issuances or sales could occur, could lower the
market price of our common stock and value of our warrants or make it difficult for us to raise additional capital. As of December
31, 2019, we had 61,829,508 shares of common stock issued and outstanding, substantially all of which we believe may be sold publicly,
subject in some cases to volume and other limitations, provisions or limitations in registration rights agreements, or prospectus-delivery
or other requirements relating to the effectiveness and use of registration statements registering the resale of such shares.
As of December 31, 2019,
7,837,245 shares of common stock were issuable upon the exercise of outstanding stock options under our equity incentive
plans at a weighted-average exercise price of $4.40 per share, we had outstanding restricted stock units covering 3,090,397
shares of common stock, and we had outstanding warrants to purchase shares of common stock or our preferred stock as
described in the risk factor below. Subject to applicable vesting requirements, upon exercise of these options or warrants or
issuance of shares following vesting of the restricted stock units, the underlying shares may be resold into the public
market, subject in some cases to volume and other limitations or prospectus-delivery requirements pursuant to registration
statements registering the resale of such shares. In the case of outstanding options or warrants that have exercise prices
that are below the market price of our common stock from time to time, or upon issuance of shares following vesting of
restricted stock units, our stockholders would experience dilution upon the exercise or vesting of these options, warrants or
restricted stock units.
Exercise of our outstanding warrants may result in dilution
to our stockholders.
As of December 31, 2019, we had (i)
outstanding warrants to purchase up to 58,824 shares of common stock at an exercise price of $8.50 per share; (ii)
outstanding warrants to purchase up to 1,183,432 shares of common stock or Series A-1 Preferred Stock, and up to 192,414
shares of common stock or Series A-2 Preferred Stock, at an exercise price of $4.10 and $2.90 per share, respectively
(subject to certain beneficial ownership limitations); (iii) outstanding warrants to purchase up to 700,000 shares of common
stock at an exercise price of $2.98 per share; and (iv) outstanding warrants to purchase up to 13,800,000 shares of our
common stock at an exercise price of $1.15 per share. Exercise of these warrants may result in dilution to our stockholders.
Risks Related to our Business
We have incurred losses since our inception, and we anticipate
that we will continue to incur losses. We may never achieve or sustain profitability.
We incurred net losses of approximately
$39.0 million and $23.6 million for the year ended December 31, 2018 and the nine months ended September 30, 2019, respectively,
and a net loss of approximately $25.5 million for the year ended December 31, 2017. From inception through September 30,
2019, we have an accumulated deficit of approximately $176.6 million. We expect that these losses could increase as we continue
our research and development activities, seek regulatory approvals for our product candidates and commercialize any approved products.
These losses will cause, among other things, our stockholders’ equity and working capital to decrease. Any future
earnings and cash flow from operations of our business are dependent on our ability to further develop our products and on revenue
and profitability from sales of products. There can be no assurance that we will be able to generate sufficient product revenue and
amounts payable to us under our commercialization agreement with Sandoz or other commercialization agreements that we may
enter into to become profitable at all or on a sustained basis. We expect to have quarter-to-quarter fluctuations in revenue and
expenses, some of which could be significant, due in part to variations in expenses and activities relating to research, development,
clinical trial, marketing and manufacturing. If our product candidates fail in clinical trials or do not gain regulatory approval,
or if our products do not achieve market acceptance, we may never become profitable. As we commercialize and market products,
we will need to incur expenses for product marketing and brand awareness and conduct significant research, development, testing
and regulatory compliance activities that, together with general and administrative expenses, could result in substantial operating
losses for the foreseeable future. Even if we do achieve profitability, we may not be able to sustain or increase profitability
on a quarterly or annual basis.
We may never commercialize additional product candidates
that are subject to regulatory approval or earn a profit.
Except for our SYMJEPI product, we have
not received regulatory approval for any drugs or products. Since our fiscal 2010 year, except for revenues from sales of compounded
pharmacy formulations after our acquisition of USC in 2016 and amounts received pursuant to our commercialization agreement with
Sandoz relating to SYMJEPI, we have not generated commercial revenue from marketing or selling any drugs or other products. We
expect to incur substantial net losses for the foreseeable future. We may never be able to commercialize any additional product
candidates that are subject to regulatory approval or be able to generate revenue from sales of such products. Because of the risks
and uncertainties associated with developing and commercializing our specialty pharmaceuticals and other product candidates, we
are unable to predict when we may commercially introduce such products, the extent of any future losses or when we will become
profitable, if ever.
Even if they are approved and commercialized, if our potential
products are unable to compete effectively with current and future products targeting similar markets as our potential products,
our commercial opportunities will be reduced or eliminated.
The markets for our SYMJEPI products
and ZIMHI product candidate, our allergy and respiratory product candidates, and our other product candidates, are intensely competitive
and characterized by rapid technological progress. We face competition from numerous sources, including major biotechnology
and pharmaceutical companies worldwide. Many of our competitors have substantially greater financial and technical resources,
and development, production and marketing capabilities, than we do. Our SYMJEPI product will compete with a number of other
currently marketed epinephrine products for use in the emergency treatment of acute allergic reactions, including anaphylaxis.
Our ZIMHI product, if commercialized, will compete with a number of other currently marketed products utilizing naloxone, for
the treatment of acute opioid overdose. Certain companies have established technologies that may be competitive with our
product candidates and any future products that we may develop or acquire. Some of these products may use different approaches
or means to obtain results, which could be more effective or less expensive than our products for similar indications. In
addition, many of these companies have more experience than we do in pre-clinical testing, performance of clinical trials, manufacturing,
and obtaining FDA and foreign regulatory approvals. They may also have more brand name exposure and expertise in sales and
marketing. We also compete with academic institutions, governmental agencies and private organizations that are conducting
research in the same fields. As a result, there is a risk that one or more of our competitors will develop a more effective product
for the same indications for which we are developing a product or, alternatively, bring a similar product to market before we can
do so. Failure to successfully compete will adversely impact the ability to raise additional capital and ultimately achieve
profitable operations.
We have incurred significant indebtedness, which will
require substantial cash to service and which subjects us to certain financial requirements and business restrictions.
As we have previously disclosed in our
SEC filings, in connection with our acquisition of USC and the transactions contemplated by the merger agreement relating to the
USC acquisition, we assumed approximately $5,722,000 principal amount of debt obligations under two loan agreements and related
loan documents relating to the building, real property and equipment that certain third parties agreed to transfer to the company
or USC in connection with the merger, as well as the two loan agreements to which USC is a party, a working capital loan and an
equipment loan, and related loan documents evidencing loans previously made to USC, and we agreed to become an additional co-borrower
under the loan documents. The lender in all of the USC Loan Documents was First Federal Bank and/or its successor Bear State
Bank, and/or Arvest Bank, as successor in interest to Bear State Bank, referred to as Lender or the Bank. We have previously entered
into amendments of these loan agreements with the Bank, or the Amended Loan Documents. We are required to make current periodic
interest and principal payments under the Amended Loan Documents, in an amount of approximately $21,000
per month; the amount of required interest payments is subject to change depending on future changes in interest rates. The
Amended Loan Documents with the Bank include a variety of representations, warranties and covenants that we are required to comply
with. If we do not comply with the provisions of such agreements and documents and the Bank declares an event of default, the
Bank would be entitled to accelerate the maturity date of the loans, the principal and accrued interest would become due and payable,
and the Bank could elect to exercise its remedies as a secured creditor under the loan documents and applicable law. At September
30, 2019, our aggregate indebtedness under the Amended Loan Documents was approximately $2,212,000.
Our ability to make scheduled payments on
our indebtedness depends on our future performance and ability to raise additional capital if required, which is subject to economic,
financial, competitive and other factors, some of which are beyond our control. If we are unable to generate sufficient cash to
service our debt, we may be required to adopt one or more alternatives, such as selling assets, attempting to restructure our debt
or obtaining additional capital through sales of equity or incurrence of additional debt on terms that may be onerous or highly
dilutive to our stockholders. Our ability to engage in any of these activities would depend on the capital markets and our financial
condition at such time, and we may not be able to do so when needed, on desirable terms or at all, which could result in a default
on our debt obligations. Additionally, the Amended Loan Documents contain various restrictive covenants, including, among others,
our obligation to deliver to the Bank certain financial and other information, our obligation to comply with certain notice and
insurance requirements, and our inability, without the Bank’s prior consent, to dispose of certain of our assets, incur certain
additional indebtedness, enter into certain merger, acquisition or change of control transactions, pay certain dividends or distributions
on or make certain repurchases of our capital stock or incur any lien or other encumbrance on our assets, subject to certain permitted
exceptions. Any failure by us to comply with any of these covenants, subject to certain cure periods, or to make all payments under
the debt instruments when due, would cause us to be in default under the applicable debt instrument. In the event of any such default,
the Bank may be able to foreclose on the assets that secure the debt or declare all borrowed funds, together with accrued and unpaid
interest, immediately due and payable, thereby potentially causing all of our available cash to be used to pay our indebtedness
or forcing us into bankruptcy or liquidation if we do not then have sufficient cash available. Any such event or occurrence could
severely and negatively impact our business, financial conditions or results of operations.
USE OF PROCEEDS
We estimate that the
net proceeds from this offering will be approximately $6.1 million, after deducting the placement agent fees and the estimated
offering expenses payable by us.
We currently intend
to use the net proceeds from this offering for general corporate purposes, which include, without limitation, expenditures relating
to research, development and clinical trials relating to our products and product candidates, capital expenditures, hiring additional
personnel, acquisitions of new technologies or products, payment of obligations, the repayment, refinancing, redemption or repurchase
of existing or future indebtedness or capital stock and working capital. We may also use the proceeds to acquire or invest in complementary
products, services, technologies or other assets, although we have no agreements or understandings with respect to any acquisitions
or investments at this time. We may temporarily invest the net proceeds in short-term, interest-bearing instruments or other investment-grade
securities.
DIVIDEND POLICY
We have never declared
or paid cash dividends on our common stock. We currently intend to retain all available funds and any future earnings for use in
the operation of our business and do not anticipate paying any cash dividends in the foreseeable future. Any future determination
to declare cash dividends will be made at the discretion of our board of directors and will depend on our financial condition,
results of operations, capital requirements, general business conditions and other factors that our board of directors may deem
relevant.
DILUTION
Purchasers of shares
of our common stock in this offering will experience an immediate dilution of the net tangible book value per share of our common
stock. Our net tangible book value as of September 30, 2019 was approximately $21,049,000, or $0.3415 per share of our common stock.
Net tangible book value per share is equal to our total tangible assets less our total liabilities, divided by the number of shares
of our outstanding common stock.
Dilution per share
of common stock equals the difference between the amount paid by purchasers of common stock in this offering (ascribing no value
to the warrants issued in the concurrent private placement) and the net tangible book value per share of our common stock immediately
after this offering.
Based on the sale by
us in this offering of 11,600,000 shares of common stock at an offering price of $0.58 per share (assuming no exercise of the warrants
issued in the concurrent private placement), after deducting estimated offering expenses and placement agent fees and expenses
payable by us, our pro forma net tangible book value as of September 30, 2019 would have been approximately $27,168,000, or $0.371
per share of our common stock. This represents an immediate increase in pro forma net tangible book value to existing stockholders
of $0.029 per share of our common stock and an immediate dilution to purchasers in this offering of $0.209 per share of our common
stock.
The following table illustrates this per-share
of our common stock dilution:
|
Offering price per share of common stock
|
|
$
|
0.58
|
|
|
Net tangible book value per share as of September 30, 2019
|
|
$
|
0.3415
|
|
|
Increase in net tangible book value per share attributable to this offering
|
|
$
|
0.029
|
|
|
Pro forma net tangible book value per share as of September 30, 2019 after giving effect to this offering
|
|
$
|
0.371
|
|
|
Dilution per share to the new investor in this offering
|
|
$
|
0.209
|
|
The information above is as of September 30, 2019 and excludes
the following as of December 31, 2019:
|
|
●
|
7,837,245 shares of common stock issuable upon exercise
of outstanding stock options under our equity incentive plans as of December 31, 2019, with exercise prices ranging from $2.50
to $11.39 and having a weighted average exercise price of $4.40 per share, and 3,090,397 shares issuable upon the
vesting of restricted stock units outstanding as of December 31, 2019, awarded under our equity incentive plans;
|
|
|
●
|
warrants to purchase up to 58,824 shares of common stock, as of December 31, 2019, at an
exercise price of $8.50 per share;
|
|
|
●
|
warrants to purchase up to 1,183,432 shares
of common stock or Series A-1 Preferred Stock, and up to 192,414 shares of common stock or Series A-2 Preferred Stock, at an exercise
price of $4.10 and $2.90 per share, respectively (subject to certain beneficial ownership limitations);
|
|
|
●
|
warrants to purchase up to 700,000 shares of common stock, as of December 31, 2019, at an exercise price of $2.98
per share;
|
|
|
●
|
warrants to purchase up to 13,800,000 shares of our common stock, as of December 31, 2019, at an
exercise price
of $1.15
per share;
and
|
|
|
●
|
8,700,000 shares of common stock issuable upon exercise
of the warrants being issued in the concurrent private placement.
|
PRIVATE PLACEMENT TRANSACTION
Concurrently with the
sale of shares of common stock in this offering, we will issue and sell to the investor in this offering warrants to purchase up
to an aggregate of 8,700,000 shares of common stock at an exercise price equal to $0.70 per share.
The
private placement warrants and the shares of common stock issuable upon the exercise of such warrants are not being
registered under the Securities Act, are not being offered pursuant to this prospectus supplement and the accompanying
prospectus and are being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act and Rule
506(b) promulgated thereunder. Accordingly, purchasers may only sell shares of common stock issued upon exercise of the
private placement warrants pursuant to an effective registration statement under the Securities Act covering the resale of
those shares, an exemption under Rule 144 under the Securities Act or another applicable exemption under the Securities Act.
Furthermore, the shares of common stock underlying the warrants are not currently authorized. We have agreed to seek
stockholder approval of a reverse stock split of the common stock or an increase in the number of authorized shares of common
stock under our amended and restated certificate of incorporation, resulting in a number of authorized shares of common stock
sufficient to permit the exercise in full of all of the private placement warrants in accordance with their terms (in either
case, a “Capital Event”).
Exercisability.
The private placement warrants are exercisable for a period of five years commencing the later of six months after the date
of issuance or the effective date of the Capital Event, and expiring five years from the date that the warrants are initially
exercisable. The warrants will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed
exercise notice and, at any time a registration statement registering the resale of the shares of common stock underlying the
warrants under the Securities Act is effective and available for the resale of such shares, by payment in full in immediately
available funds for the number of shares of common stock purchased upon such exercise. If a registration statement
registering the resale of the shares of common stock underlying the private placement warrants under the Securities Act is
not effective or available, the holder may, in its sole discretion, elect to exercise the private placement warrant through a
cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock
determined according to the formula set forth in the warrant.
Exercise Limitation.
A holder will not have the right to exercise any portion of the private placement warrant if the holder (together with its affiliates)
would beneficially own in excess of 4.99% (or, upon election of the holder, 9.99%) of the number of shares of our common stock
outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the
terms of the warrants. However, any holder may increase or decrease such percentage, provided that any increase will not be effective
until the 61st day after such election.
Exercise Price Adjustment.
The exercise price of the private placement warrants is subject to appropriate adjustment in the event of certain stock dividends
and distributions, stock splits, stock combinations, reclassifications or similar events affecting our common stock and also upon
any distributions of assets, including cash, stock or other property to our stockholders.
Exchange Listing.
There is no established trading market for the private placement warrants and we do not expect a market to develop. In addition,
we do not intend to apply for the listing of the private placement warrants on any national securities exchange or other trading
market.
Fundamental Transactions.
If a fundamental transaction occurs, then the successor entity will succeed to, and be substituted for us, and may exercise every
right and power that we may exercise and will assume all of our obligations under the private placement warrants with the same
effect as if such successor entity had been named in the warrant itself. If holders of our common stock are given a choice as to
the securities, cash or property to be received in a fundamental transaction, then the holder shall be given the same choice as
to the consideration it receives upon any exercise of the private placement warrant following such fundamental transaction. In
addition, the successor entity, at the request of warrant holders, will be obligated to purchase any unexercised portion of the
private placement warrants in accordance with the terms of such warrants.
Rights as a Stockholder.
Except as otherwise provided in the private placement warrants or by virtue of such holder’s ownership of shares of our common
stock, the holder of a private placement warrant will not have the rights or privileges of a holder of our common stock, including
any voting rights, until the holder exercises the warrant.
Resale/Registration
Rights. Following the occurrence of a Capital Event, we are required to file a registration statement providing for the resale
of the shares of common stock issued and issuable upon the exercise of the private placement warrants. We are required to use commercially
reasonable efforts to cause such registration to become effective, subject to certain exceptions, and to keep such registration
statement effective at all times until no investor owns any warrants or shares issuable upon exercise thereof.
PLAN OF DISTRIBUTION
Maxim Group LLC has
agreed to act as the exclusive lead placement agent in connection with this offering subject to the terms and conditions of the
placement agency agreement dated February 20, 2020. We refer to Maxim Group LLC as the placement agent. The placement agent is
not purchasing or selling any of the shares of our common stock offered by this prospectus supplement, nor is it required to arrange
the purchase or sale of any specific number or dollar amount of shares of our common stock, but has agreed to use its reasonable
best efforts to arrange for the sale of all of the shares of our common stock offered hereby. Therefore, we will enter into a securities
purchase agreement directly with each investor in connection with this offering and we may not sell the entire amount of shares
of our common stock offered pursuant to this prospectus supplement. We will make offers only to a limited number institutional
accredited investors.
We have agreed to indemnify
Maxim Group LLC against specified liabilities, including liabilities under the Securities Act, and to contribute to payments Maxim
Group LLC may be required to make in respect thereof.
Pursuant to the terms
of the securities purchase agreement, from the date hereof until the later of 75 days after the closing date of this offering,
we may not issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of common stock
or common stock equivalents, subject to certain exceptions set forth in the securities purchase agreement.
In
addition, we have also agreed with the purchasers of our common stock and the private placement warrants from the date of this
prospectus supplement until 60 days following the effective date of a Capital Event that we will not effect or enter into an agreement
to effect a “Variable Rate Transaction” as defined in the securities purchase agreement to be entered into with each
purchaser.
Fees and Expenses
We
have agreed to pay the placement agent a placement agent fee equal to 6.0% of the aggregate purchase price of the shares of our
common stock sold in this offering. The following table shows the per share and total cash placement agent’s fees we will
pay to the placement agent in connection with the sale of the shares of our common stock offered pursuant to this prospectus supplement
and the accompanying prospectus, assuming the purchase of all of the shares offered hereby.
|
|
|
Per
Share
|
|
Total
|
|
Offering price
|
|
$
|
0.58
|
|
|
$
|
6,728,000
|
|
|
Placement agent’s fees (1)
|
|
$
|
0.0348
|
|
|
$
|
403,680
|
|
|
Proceeds, before expenses, to us
|
|
$
|
0.5452
|
|
|
$
|
6,324,320
|
|
|
|
|
|
|
|
|
|
|
|
(1)In
addition, we have agreed to reimburse Maxim Group LLC’s actual out-of-pocket expenses.
We
estimate that the total expenses of the offering payable by us, excluding the placement agent’s fees, will be approximately
$205,000.
The
placement agent may be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act, and any commissions
received by it and any profit realized on the resale of the shares sold by it while acting as principal might be deemed to be underwriting
discounts or commissions under the Securities Act. As underwriter, the placement agent would be required to comply with the requirements
of the Securities Act and the Securities Exchange Act of 1934, as amended, or the Exchange Act, including, without limitation,
Rule 415(a)(4) under the Securities Act and Rule 10b-5 and Regulation M under the Exchange Act. These rules and regulations
may limit the timing of purchases and sales of shares by the placement agent acting as principal. Under these rules and regulations,
the placement agent:
|
|
●
|
may not engage in any stabilization activity in connection with our
securities; and
|
|
|
●
|
may not bid for or purchase any of our securities or attempt to induce
any person to purchase any of our securities, other than as permitted under the Exchange Act, until it has completed its participation
in the distribution.
|
This
prospectus supplement and the accompanying prospectus may be made available in electronic format on websites or through other online
services maintained by the placement agent or by an affiliate. Other than this prospectus supplement and the accompanying prospectus,
the information on the placement agent’s website and any information contained in any other website maintained by the placement
agent is not part of this prospectus supplement and the accompanying prospectus or the registration statement of which this prospectus
supplement and the accompanying prospectus form a part, has not been approved and/or endorsed by us or the placement agent, and
should not be relied upon by investors.
The
foregoing does not purport to be a complete statement of the terms and conditions of the placement agency agreement and the securities
purchase agreement. A copy of the securities purchase agreement with the purchasers will be included as an exhibit to our Current
Report on Form 8-K filed or to be filed with the SEC and incorporated by reference into the registration statement of which this
prospectus supplement and the accompanying prospectus form a part. See “Information Incorporated by Reference” and “Where
You Can Find More Information.”
No
action has been or will be taken in any jurisdiction (except in the United States) that would permit a public offering of the securities
offered by this prospectus supplement and accompanying prospectus, or the possession, circulation or distribution of this prospectus
supplement and accompanying prospectus or any other material relating to us or the securities offered hereby in any jurisdiction
where action for that purpose is required. Accordingly, the securities offered hereby may not be offered or sold, directly or indirectly,
and neither of this prospectus supplement and accompanying prospectus nor any other offering material or advertisements in connection
with the securities offered hereby may be distributed or published, in or from any country or jurisdiction except in compliance
with any applicable rules and regulations of any such country or jurisdiction. The placement agent may arrange to sell securities
offered by this prospectus supplement and accompanying prospectus in certain jurisdictions outside the United States, either directly
or through affiliates, where they are permitted to do so.
Relationships
The placement agent
and its affiliates may provide from time to time in the future certain commercial banking, financial advisory, investment banking
and other services for us in the ordinary course of their business, for which they may receive customary fees and commissions.
In addition, from time to time, the placement agent and its affiliates may effect transactions for their own account or the account
of customers, and hold on behalf of themselves or their customers, long or short positions in our debt or equity securities or
loans, and may do so in the future. However, except as disclosed in this prospectus supplement, we have no present arrangements
with the placement agent for any further services.
Transfer Agent and Registrar
The transfer agent
and registrar for our Common Stock is American Stock Transfer & Trust Company, LLC.
Listing
Our common stock is
traded on the Nasdaq Capital Market under the symbol “ADMP.”
LEGAL MATTERS
Certain legal matters
in connection with the validity of the shares of common stock being offered by the prospectus supplement will be passed upon for
us by Weintraub Tobin Chediak Coleman Grodin Law Corporation, Sacramento, California. Ellenoff Grossman & Schole LLP, New York,
New York, is acting as counsel for the placement agent in connection with the securities offered hereby.
EXPERTS
The financial statements
as of December 31, 2018 and 2017 and for the two years in the period ended December 31, 2018, incorporated by reference
in this prospectus have been so included in reliance on the reports of Mayer Hoffman McCann P.C., an independent registered public
accounting firm, given on the authority of said firm as experts in auditing and accounting in giving said reports.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with
the SEC a registration statement on Form S-3 under the Securities Act with respect to the securities offered by this prospectus
supplement. This prospectus supplement and the accompanying prospectus, which are part of the registration statement, omits certain
information, exhibits, schedules and undertakings set forth in the registration statement, as permitted by the SEC. For further
information pertaining to us and the securities offered in this prospectus supplement, reference is made to that registration statement
and the exhibits and schedules to the registration statement. Statements contained in this prospectus supplement and the accompanying
prospectus as to the contents or provisions of any documents referred to in this prospectus are not necessarily complete, and in
each instance where a copy of the document has been filed as an exhibit to the registration statement, reference is made to the
exhibit for a more complete description of the matters involved.
We file annual, quarterly
and current reports, proxy statements and other information with the SEC. Our SEC filings can be read and copied at the SEC’s
Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the
public reference room by calling the SEC at 1-800-SEC-0330. Also, the SEC maintains a website at www.sec.gov that contains reports,
proxy and information statements and other information regarding issuers that file electronically with the SEC, including us.
General information
about our company, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as
well as any amendments and exhibits to those reports, are available free of charge through our website at www.adamispharmaceuticals.com
as soon as reasonably practicable after we file them with, or furnish them to, the SEC. Information on, or than can be accessed
through, our website is not incorporated into this prospectus supplement or other securities filings and is not a part of these
filings.
INCORPORATION OF CERTAIN INFORMATION
BY REFERENCE
The SEC allows us
to “incorporate by reference” into this prospectus supplement the information we file with it, which means that we
can disclose important information to you by referring you to those documents. The information we incorporate by reference is an
important part of this prospectus supplement, and later information that we file with the SEC will automatically update and supersede
some of this information. We incorporate by reference the documents listed below and any future filings we make with the SEC under
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, including filings made after the date of the initial registration statement,
until we sell all of the shares covered by this prospectus supplement or the sale of shares by us pursuant to this prospectus supplement
is terminated. In no event, however, will any of the information that we furnish to, pursuant to Item 2.02 or Item 7.01 of any
Current Report on Form 8-K (including exhibits related thereto) or other applicable SEC rules, rather than file with, the SEC be
incorporated by reference or otherwise be included herein, unless such information is expressly incorporated herein by a reference
in such furnished Current Report on Form 8-K or other furnished document. The documents we incorporate by reference are:
|
|
●
|
Annual Report on Form 10-K for the year
ended December 31, 2018, filed on March 15, 2019;
|
|
|
●
|
Amendment No. 1 to Annual Report on Form
10-K/A for the year ended December 31, 2018, filed April 30, 2019;
|
|
|
●
|
Our quarterly reports on Form 10-Q
for the periods ended March 31, 2019, June 30, 2019 and September 30, 2019, filed on May 5, 2019, August 8, 2019,
and November 12, 2019, respectively;
|
|
|
●
|
Current Reports on Form 8-K and Form 8-K/A
(other than information furnished rather than filed) filed on January 18, 2019, February 5, 2019, May 9, 2019, May 21, 2019,
July 26, 2019, July 30, 2019, August 1, 2019, August 8, 2019, August 27, 2019, October 4, 2019, October 10, 2019, October 15, 2019,
October 16, 2019, November 12, 2019, November 25, 2019, December 26, 2019 and February 21, 2020;
|
|
|
●
|
Our definitive proxy statement
on Schedule 14A, filed with the SEC on June 25, 2019; and
|
|
|
●
|
The description of our common stock contained
in our Registration Statement on Form 8-A filed on December 11, 2013, including any amendments or reports filed for the purpose
of updating such description.
|
Any statement contained
in a document incorporated or deemed to be incorporated by reference into this prospectus supplement will be deemed to be modified
or superseded for purposes of this prospectus supplement to the extent that a statement contained in this prospectus supplement
or any other subsequently filed document that is deemed to be incorporated by reference into this prospectus supplement modifies
or supersedes the statement. Any statement so modified or superseded will not be deemed, except as so modified or superseded, to
constitute a part of this prospectus supplement.
We will provide each person to whom a prospectus
supplement is delivered a copy of all of the information that has been incorporated by reference in this prospectus supplement
but not delivered with the prospectus supplement. You may request, and we will provide you with, a copy of these filings, at no
cost, by calling us at (858) 997-2400 or by writing to us at the following address (Exhibits to the filings will not be sent,
however, unless those exhibits have specifically been incorporated by reference into this prospectus supplement and accompanying
prospectus.):
Adamis Pharmaceuticals Corporation
11682 El Camino Real, Suite 300
San Diego, CA 92130
Attention: Corporate Secretary
Information on, or
that can be accessed through, our website is not incorporated into this prospectus supplement or other securities filings and
is not a part of these filings.
PROSPECTUS
ADAMIS PHARMACEUTICALS CORPORATION
$150,000,000
Common Stock
Preferred Stock
Warrants
Units
From
time to time in one or more offerings, we may offer and sell up to an aggregate amount of $150,000,000 of any combination of the
securities described in this prospectus, either individually or in combination. We may also offer common stock upon conversion
of preferred stock, or common stock or preferred stock upon the exercise of warrants.
We
will provide the specific terms of these offerings and securities in one or more supplements to this prospectus. We may also authorize
one or more free writing prospectuses to be provided to you in connection with these offerings. The prospectus supplement and any
related free writing prospectus may also add, update or change information contained in this prospectus. You should carefully read
this prospectus, the applicable prospectus supplement and any related free writing prospectus, as well as any documents incorporated
by reference or deemed to be incorporated by reference into this prospectus, before buying any of the securities being offered.
This prospectus may not be used to offer
or sell our securities, unless accompanied by a prospectus supplement relating to the offered securities.
Our common stock is currently listed on
the Nasdaq Capital Market under the symbol “ADMP.” On July 6, 2018, the last reported sale price of our common stock
was $4.50. The applicable prospectus supplement will contain information, where applicable, as to any other listing, if any, on
the Nasdaq Capital Market or other securities exchange, of the securities covered by the applicable prospectus supplement.
These securities may be sold directly by
us, through dealers or agents designated from time to time, to or through underwriters or dealers or through a combination of these
methods on a continuous or delayed basis. See “Plan of Distribution” in this prospectus. We may also describe the plan
of distribution for any particular offering of our securities in a prospectus supplement. If any underwriters or agents are involved
in the sale of any securities with respect to which this prospectus is being delivered, we will disclose their names and the nature
of our arrangements, including applicable fees, commissions, discounts and over-allotment
options, in a prospectus supplement. The price to the public of such securities and the net proceeds we expect to receive from
such sale will also be set forth in a prospectus supplement.
Investing
in our securities involves a high degree of risk. You should review carefully the risks and uncertainties described under the heading
“Risk Factors” on page 6 of this prospectus and any similar section contained in the applicable prospectus supplement
and in any free writing prospectuses we have authorized for use in connection with a specific offering, and under similar headings
in the documents that are incorporated by reference into this prospectus.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities, or passed upon the adequacy or accuracy of
this prospectus or any accompanying prospectus supplement. Any representation to the contrary is a criminal offense.
The date of this prospectus is July 18,
2018.
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a shelf registration
statement that we filed with the Securities and Exchange Commission, or the SEC, using a “shelf” registration process.
Under this shelf registration process, we may sell any combination of the securities described in this prospectus in one or more
offerings from time to time having an aggregate initial offering price of $150,000,000. This prospectus provides you only with
a general description of the securities we may offer. Each time we offer securities, we will provide you with a prospectus supplement
that will contain more specific information about the securities being offered and the terms of that offering. We may also authorize
one or more free writing prospectuses to be provided to you that may contain material information relating to these offerings and
securities. We may also add, update or change in the prospectus supplement any of the information contained in this prospectus
or in the documents that we have incorporated by reference into this prospectus, including, without limitation, a discussion of
any risk factors or other special considerations that apply to these offerings or securities or the specific plan of distribution.
If there is any inconsistency between the information in this prospectus and a prospectus supplement or any related free writing
prospectus or information incorporated by reference having a later date, you should rely on the information in that prospectus
supplement or any related free writing prospectus we may authorize to be provided to you or incorporated information having a later
date. THIS PROSPECTUS MAY NOT BE USED TO CONSUMMATE A SALE OF SECURITIES, UNLESS IT IS ACCOMPANIED BY A PROSPECTUS SUPPLEMENT.
This prospectus does not contain all the
information provided in the registration statement we filed with the SEC. You should read this prospectus, and any accompanying
prospectus supplement and any related free writing prospectus, together with additional information incorporated by reference as
described under the headings “Where You Can Find More Information” and “Incorporation of Certain Information
by Reference,” before you invest in any of the securities being offered hereby.
You should rely only on the information
contained in or incorporated by reference into this prospectus and any applicable prospectus supplement, along with the information
contained in any free writing prospectuses that we have authorized for use in connection with a specific offering. We have not
authorized any other person to provide you with different information. If anyone provides you with different or inconsistent information,
you should not rely on it. We take no responsibility for, and can provide no assurances as to the reliability of, any information
not contained in this prospectus, any applicable prospectus supplement or any related free writing prospectus that we may authorize
to be provided to you. No dealer, salesperson or other person is authorized to give any information or to represent anything not
contained in this prospectus, any applicable prospectus supplement or any related free writing prospectus. This prospectus is not
an offer to sell securities, and it is not soliciting an offer to buy securities, in any jurisdiction where the offer or sale is
not permitted. The information appearing in this prospectus, the applicable prospectus supplement or any related free writing prospectus
is accurate only as of the date on the front of the document (unless the information specifically indicates that another date applies),
and any information that we have incorporated by reference is accurate only as of the date of the document incorporated by reference,
regardless of the time of delivery of this prospectus, any applicable prospectus supplement or any related free writing prospectus,
or any sale of a security. Our business, financial condition, results of operations and prospects may have changed since those
dates.
This prospectus contains summaries of certain
provisions contained in some of the documents described herein, but reference is made to the actual documents for complete information.
All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred to herein
have been filed, will be filed, or will be incorporated by reference as exhibits to the registration statement of which this prospectus
is a part, and you may obtain copies of those documents as described below under “Where You Can Find More Information.”
Unless otherwise stated or the context requires
otherwise, references in this prospectus to “Adamis,” the “company,” or the “Company,” “we,”
“us,” or “our” refer to Adamis Pharmaceuticals Corporation and our subsidiaries, taken together. The Adamis
Pharmaceuticals logo and other trademarks or service marks of Adamis Pharmaceuticals Corporation appearing in this prospectus are
the property of Adamis Pharmaceuticals Corporation. All other brand names or trademarks appearing in this prospectus are the property
of their respective owners.
PROSPECTUS SUMMARY
This summary highlights selected information
appearing elsewhere in this prospectus or incorporated by reference in this prospectus, and does not contain all of the information
that you need to consider in making your investment decision. You should carefully read the entire prospectus, the applicable prospectus
supplement and any related free writing prospectus, including the risks of investing in our securities discussed under the heading
“Risk Factors” contained in the applicable prospectus supplement and any related free writing prospectus, and under
similar headings in the other documents that are incorporated by reference into this prospectus. You should also carefully read
the information incorporated by reference into this prospectus, including our financial statements, and the exhibits to the registration
statement of which this prospectus is a part.
Company Overview
We are a specialty biopharmaceutical company
focused on developing and commercializing products including in the therapeutic areas of respiratory disease and allergy. Our current
products and product candidates in development in the allergy and respiratory markets include Symjepi™ (epinephrine) Injection
0.3mg, which was approved by the U.S. Food and Drug Administration, or FDA, in 2017 for use in the emergency treatment of acute
allergic reactions, including anaphylaxis; Symjepi™ (epinephrine) Injection 0.15mg, which is intended for use in the treatment
of anaphylaxis for patients weighing 33-65 pounds and for which the company submitted a supplemental new drug application, or sNDA,
to the FDA in November 2017; a naloxone injection product candidate (APC-6000) utilizing the approved Symject™ injection
device used for our epinephrine product, intended for the treatment of opioid overdose, for which the company submitted an investigational
new drug application, or IND, to the FDA in December 2017; a beclomethasone hydrofluoroalkane, or HFA, metered dose inhaler product
candidate (APC-1000) intended for the treatment of asthma, for which the company submitted an IND to the FDA in January 2018; and
a fluticasone (APC-4000) dry powder inhaler, or DPI, product candidate for the treatment of asthma. We may also develop other product
candidates addressing other indications or markets. Our goal is to create low cost therapeutic alternatives to existing treatments.
Consistent across all specialty pharmaceuticals product lines, we intend to submit New Drug Applications, or NDAs, under Section
505(b)(2), or Section 505(j) Abbreviated New Drug Applications, or ANDAs, to the FDA, whenever possible, in order to potentially
reduce the time to market and to save on costs, compared to those associated with Section 505(b)(1) NDAs for new drug products.
Our U.S. Compounding, Inc., subsidiary,
or USC, which we acquired in April 2016 and which is registered as a drug compounding outsourcing facility under Section 503B of
the U.S. Food, Drug & Cosmetic Act, as amended, or FDCA, and the U.S. Drug Quality and Security Act, or DQSA, provides prescription
compounded medications, including compounded sterile preparations and nonsterile compounds, to patients, physician clinics, hospitals,
surgery centers and other clients throughout most of the United States. USC’s product offerings broadly include, among others,
corticosteroids, hormone replacement therapies, hospital outsourcing products, injectables, urological preparations, ophthalmic
preparations, topical compounds for pain, and men’s and women’s health products. USC’s compounded formulations
in many circumstances are offered as alternatives to drugs approved by the FDA. USC also provides certain veterinary pharmaceutical
products for animals.
To achieve our goals and support our overall
strategy, we will need to raise a substantial amount of funding and make significant investments in, among other things, product
development and working capital.
For a more detailed description of our business,
financial condition, results of operations and other important information, we refer you to our filings with the Securities and
Exchange Commission that are incorporated by reference in this prospectus, including our Annual Report on Form 10-K for the year
ended December 31, 2017, as amended, and filings that we subsequently make with the SEC. For instructions on how to find copies
of these documents, see “Where You Can Find More Information.”
Corporate Background
We are incorporated under the laws of the
State of Delaware. Our principal executive offices are located at 11682 El Camino Real, Suite 300, San Diego, CA 92130, and our
telephone number is (858) 997-2400. Our website address is: www.adamispharmaceuticals.com. We have included our website address
as a factual reference and do not intend it to be an active link to our website. The information that can be accessed through our
website is not part of this prospectus or any prospectus supplement, and investors should not rely on any such information in deciding
whether to purchase our securities.
Risks Associated with Our Business
Our business is subject to numerous risks,
as described under the heading “Risk Factors” contained in the applicable prospectus supplement and in any free writing
prospectuses that we have authorized for use in connection with a specific offering, and under similar headings in the documents
that are incorporated by reference into this prospectus.
The Securities We May Offer
We may offer and sell from time to time,
in one or more offerings, shares of our common stock or preferred stock, warrants to purchase any of such securities, and/or units
consisting of any of the foregoing securities, either individually or in combination, up to a total dollar amount of $150,000,000,
from time to time under this prospectus, together with the applicable prospectus supplement and any related free writing prospectus,
at prices and on terms to be determined at the time of sale and by market conditions at the time of any offering. We may issue
securities that are exchangeable for or convertible into common stock or any of the other securities that may be sold under this
prospectus. We may also offer common stock, preferred stock, or units consisting of any of the foregoing securities, upon the exercise
of warrants. This prospectus provides you with a general description of the securities we may offer. If we indicate in the applicable
prospectus supplement, the terms of the securities may differ from the terms we have summarized below. Each time we offer a type
or series of securities under this prospectus, we will provide a prospectus supplement that will describe the specific amounts,
prices and other important terms of the securities, offered by that prospectus supplement, including, to the extent applicable:
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designation or classification;
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aggregate offering price;
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rates and times of payment of dividends, if any;
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redemption, conversion, exercise, exchange or sinking fund terms, if any;
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voting or other rights, if any;
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conversion or exchange prices or rates, if any and, if applicable, any provisions for changes to or adjustments in the conversion or exchange prices or rates and in the securities or other property receivable upon conversion or exchange;
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restrictive covenants, if any;
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ranking, if applicable;
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material or special U.S. federal income tax considerations, if any; and
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the securities exchange, if any, on which the securities will be listed.
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The applicable prospectus supplement and
any related free writing prospectus that we may authorize to be provided to you may also supplement or, as applicable, add, update
or change any of the information contained in this prospectus or in documents we have incorporated by reference. However, no prospectus
supplement or free writing prospectus will offer a security that is not registered and described in this prospectus at the time
of the effectiveness of the registration statement of which this prospectus is a part.
The terms of any particular offering, the
initial offering price and the net proceeds to us will be contained in the prospectus supplement, information incorporated by reference
or free writing prospectus relating to such offering. This prospectus may not be used to consummate a sale of securities, unless
it is accompanied by a prospectus supplement.
We may issue securities in book-entry form
through one or more depositaries, such as The Depository Trust Company, named in the applicable prospectus supplement. If any securities
are to be listed or quoted on a securities exchange or quotation system, the applicable prospectus supplement will say so.
We may sell the securities directly to investors
or to or through agents, underwriters, agents or dealers. We, and our agents, underwriters or dealers reserve the right to accept
or reject all or part of any proposed purchase of securities. If we do offer securities to or through agents, underwriters or dealers,
we will include in the applicable prospectus supplement:
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the names of those agents, underwriters or dealers;
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applicable fees, discounts and commissions to be paid to them;
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details regarding over-allotment or other options, if any; and
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the net proceeds to us.
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Common Stock. We may issue shares
of our common stock from time to time. Each holder of our common stock is entitled to one vote for each share on all matters submitted
to a vote of the stockholders, including the election of directors. Subject to preferences that may be applicable to any then-outstanding
preferred stock, holders of common stock are entitled to receive ratably those dividends, if any, as may be declared from time
to time by the board of directors, or the Board, out of legally available funds. In the event of our liquidation, dissolution or
winding up, holders of common stock are entitled to share ratably in the net assets legally available for distribution to stockholders
after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders
of any then-outstanding shares of preferred stock. Holders of common stock have no preemptive, conversion or subscription rights
and there are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of
the holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series
of preferred stock that we may designate in the future. In this prospectus, we have summarized certain general features of the
common stock under “Description of Capital Stock—Common Stock.” We urge you, however, to read the applicable
prospectus supplement (and any related free writing prospectus that we may authorize to be provided to you) related to any common
stock being offered.
Preferred Stock. We may issue shares
of our preferred stock from time to time, in one or more series. Our board of directors will determine the designations, voting
powers, preferences and rights of the preferred stock, as well as the qualifications, limitations or restrictions thereof, including
dividend rights, conversion rights, preemptive rights, terms of redemption or repurchase, liquidation preferences, sinking fund
terms and the number of shares constituting any series or the designation of any series. Convertible preferred stock will be convertible
into our common stock or exchangeable for other securities. Conversion may be mandatory or at the holder’s option and would
be at prescribed conversion rates.
If we sell any series of preferred stock
under this prospectus, we will fix the designations, voting powers, preferences and rights of such series of preferred stock, as
well as the qualifications, limitations or restrictions thereof, in the certificate of designation relating to that series. We
will file as an exhibit to the registration statement of which this prospectus is a part, or will incorporate by reference from
reports that we file with the SEC, the form of any certificate of designation that contains the terms of the series of preferred
stock we are offering. In this prospectus, we have summarized certain general features of the preferred stock under “Description
of Capital Stock—Preferred Stock.” We urge you, however, to read the applicable prospectus supplement (and any related
free writing prospectus that we may authorize to be provided to you) related to the series of preferred stock being offered, as
well as the complete certificate of designation that contains the terms of the applicable series of preferred stock.
Warrants. We may issue warrants for
the purchase of common stock and/or preferred stock in one or more series. We may issue warrants independently or in combination
with common stock and/or preferred stock, and the warrants may be attached to or separate from these securities. In this prospectus,
we have summarized certain general features of the warrants under “Description of Warrants.” We urge you, however,
to read the applicable prospectus supplement (and any related free writing prospectus that we may authorize to be provided to you)
related to the particular series of warrants being offered, as well as any warrant agreements and warrant certificates that contain
the terms of the warrants. We will file as exhibits to the registration statement of which this prospectus is a part, or will incorporate
by reference from reports that we file with the SEC, the form of warrant and the warrant agreement, if any, including a form of
warrant certificate, as applicable, that contain the terms of the particular series of warrants we are offering, and any supplemental
agreements, before the issuance of such warrants.
Any warrants issued under this prospectus
may be evidenced by warrant certificates. Warrants also may be issued under an applicable warrant agreement that we enter into
with a warrant agent. We will indicate the name and address of the warrant agent, if applicable, in the prospectus supplement relating
to the particular series of warrants being offered.
Units. We may issue units comprised
of one or more of the other securities described in this prospectus in any combination. Units will be issued so that the holder
of the unit is also the holder of each security included in the unit. The agreement under which a unit is issued may provide that
the securities included in the unit may not be held or transferred separately, at any time or at any time before a specified date.
In this prospectus, we have summarized certain
general features of the units under “Description of Units.” We urge you, however, to read the applicable prospectus
supplement (and any related free writing prospectus that we may authorize to be provided to you) related to the particular series
of units being offered, as well as any unit agreements and unit certificates that contain the terms of the units. We will file
as exhibits to the registration statement of which this prospectus is a part, or will incorporate by reference from reports that
we file with the SEC, the form of unit certificate and the unit agreement, if any and as applicable, that contain the terms of
the particular series of units we are offering, and any supplemental agreements, before the issuance of such units.
Use of Proceeds
Except as otherwise provided in any applicable
prospectus supplement or in any free writing prospectuses that we have authorized for use in connection with a specific offering,
we currently intend to use the net proceeds from the sale of the securities offered by us hereunder, if any, and from the exercise
of any warrants issued pursuant hereto, if any, for working capital and general corporate purposes, which may include, without
limitation, working capital, capital expenditures, research and development expenditures, regulatory affairs expenditures, clinical
trial expenditures, the repayment, refinancing, redemption or repurchase of existing or future indebtedness, obligations or capital
stock, funding expenditures relating to launch, manufacture or sale of products, and acquisition of or investment in complementary
or strategic products, technologies or business. See “Use of Proceeds” in this prospectus.
Nasdaq Capital Market Listing
Our common stock is currently listed on
the Nasdaq Capital Market under the symbol “ADMP.” The applicable prospectus supplement will contain information, where
applicable, as to any other listing, if any, on the Nasdaq Capital Market or other securities exchange of the securities covered
by the applicable prospectus supplement.
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus contains forward-looking
statements within the meaning of the federal securities laws. For this purpose, any statements contained in this prospectus, except
for historical information, may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words
such as “expects,” “anticipates,” “intends,” “projects,” “estimates,”
“assumes,” “plans,” “believes,” “seeks,” “may,” “should,”
“could” or the negative of such terms or other similar expressions, are intended to identify such forward-looking statements.
These statements include but are not limited to statements under the captions “Business,” “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in other sections
incorporated by reference from our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as applicable, as well as our
other filings with the SEC.
Such statements may include, without limitation,
statements relating to: our expectations concerning regulatory approvals for our products; our expectations for growth; estimates
of future revenue; our strategies and objectives; our sources and uses of cash; our liquidity needs; our ability to obtain sufficient
funding to support our planned activities; our current or planned clinical trials or research and development activities; product
development timelines; our future products; regulatory matters; anticipated dates for commencement of clinical trials; anticipated
completion dates of clinical trials; anticipated dates for meetings with regulatory authorities and submissions to obtain required
regulatory marketing approvals; anticipated dates for commercial introduction of products; expense, profits, cash flow balance
sheet items; guidance regarding results in future periods; and other statements concerning our future operations and activities.
Such statements are not historical facts, but are based on our current expectations, estimates and beliefs about our business,
industry and future events. They are subject to risks and uncertainties, known and unknown, that could cause actual results and
developments to differ materially from those expressed or implied in such statements.
You should read this prospectus and any
accompanying prospectus supplement and the documents that we reference herein and therein and have filed as exhibits to the registration
statement of which this prospectus is part, completely and with the understanding that our actual future results may be materially
different from what we expect. You should assume that the information appearing in this prospectus and any accompanying prospectus
supplement is accurate as of the date on the front cover of this prospectus or such prospectus supplement only. Because the risk
factors referred to elsewhere in the prospectus could cause actual results or outcomes to differ materially from those expressed
in any forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statements.
In addition, many forward-looking statements concerning our anticipated future business activities assume that we are able to obtain
sufficient funding to support such activities and continue our operations and planned activities, which may not be the case. Further,
any forward-looking statement speaks only as of the date on which it is made, and except as may be required by applicable law,
we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the
statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible
for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent
to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking
statements. We qualify all of the information presented in this prospectus and any accompanying prospectus supplement, and particularly
our forward-looking statements, by these cautionary statements.
RISK FACTORS
Any investment in our common stock or other
securities involves a high degree of risk. Investors should carefully consider the risks and uncertainties described under the
heading “Risk Factors” contained in the applicable prospectus supplement and any related free writing prospectus, and
discussed in the documents incorporated or deemed to be incorporated by reference herein, including
the risks and uncertainties discussed under “Risk Factors” in our most recent Annual Report on Form 10-K and in subsequent
filings that are incorporated herein by reference, together with the other information contained in this prospectus, before
deciding whether to purchase the securities offered hereby. Our business, financial condition, results of operations and prospects
could be materially and adversely affected by these risks if any of them actually occur. The risks and uncertainties described
in these documents are not the only ones we face. Additional risks not currently known to us or other factors not perceived by
us to present significant risks to our business at this time also could adversely affect our business, operating results and financial
condition, as well as adversely affect the value of an investment in our securities. This prospectus also contains forward-looking
statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking
statements as a result of certain factors, including the risks described elsewhere in this prospectus and in the documents incorporated
or deemed to be incorporated by reference herein. For more information, see the section entitled “Where You Can Find
More Information.”
USE OF PROCEEDS
Except as otherwise provided in the applicable
prospectus supplement or in any free writing prospectuses, we intend to use the net proceeds from the sale of the securities offered
by this prospectus and from the exercise of any warrants issued pursuant hereto, for general corporate purposes, which may include,
without limitation, working capital, capital expenditures, research and development expenditures, regulatory affairs expenditures,
clinical trial expenditures, the repayment, refinancing, redemption or repurchase of existing or future indebtedness, obligations
or capital stock, funding expenditures relating to launch, manufacture or sale of products, and acquisition of or investment in
complementary or strategic products, technologies or businesses. Further, from time to time, we may evaluate acquisition opportunities
and engage in related discussions with other companies.
The intended application of proceeds from
the sale of any particular offering of securities using this prospectus will be described in the accompanying prospectus supplement
relating to such offering. The precise amount and timing of the application of these proceeds will depend upon a number of factors,
such as funding requirements, timing and progress of research, development and commercialization efforts, and the availability
and costs of other funds. We may temporarily invest the net proceeds in investment-grade, interest-bearing securities until they
are used for their stated purpose. We have not determined the amount of net proceeds to be used specifically for such purposes.
As a result, management will retain broad discretion over the use of net proceeds from the sale of securities offered hereby.
DESCRIPTION OF CAPITAL STOCK
General
The following description of common stock
and preferred stock, together with the additional information we include in any applicable prospectus supplements or related free
writing prospectuses, summarizes the material terms and provisions of the common stock and preferred stock that we may offer under
this prospectus but is not complete. For the complete terms of our common stock and preferred stock, please refer to our restated
certificate of incorporation, as the same may be amended from time to time, any certificates of designation for our preferred stock,
and our amended and restated bylaws, as amended from time to time. For directions on obtaining these documents, please refer to
“Where You Can Find More Information” in this prospectus. The Delaware General Corporation Law, or DGCL, may also affect
the terms of these securities. While the terms we have summarized below will apply generally to any future common stock, preferred
stock or warrants that we may offer, we will describe the particular terms of any series of these securities in more detail in
the applicable prospectus supplement. If we so indicate in a prospectus supplement, the terms of any securities we offer under
that prospectus supplement may differ from the terms we describe below.
As of the date of this prospectus, our authorized
capital stock consisted of 100,000,000 shares of common stock, $0.0001 par value per share, and 10,000,000 shares of preferred
stock, $0.0001 par value per share. Our board of directors may establish the rights and preferences of the preferred stock from
time to time. As of June 30, 2018, there were approximately 33,390,130 shares of our common stock outstanding and no shares of
preferred stock outstanding.
Common Stock
We may issue shares of our common stock
from time to time. Holders of our common stock are entitled to one vote per share for each share held of record on all matters
submitted to a vote of stockholders and do not have cumulative voting rights. Our restated certificate of incorporation does not
provide for cumulative voting. Subject to preferences that may be applicable to any outstanding preferred stock, the holders of
our common stock are entitled to receive ratably such dividends, if any, as may be declared by our board of directors, or the Board,
out of legally available funds. However, the current policy of the Board is to retain earnings, if any, for the operation and expansion
of the company. Upon liquidation, dissolution or winding-up, the holders of our common stock are entitled to share ratably in all
of our assets which are legally available for distribution, after payment of or provision for all liabilities and the liquidation
preference of any outstanding preferred stock. The holders of our common stock have no preemptive, subscription, redemption or
conversion rights. Our common stock is currently listed on the Nasdaq Capital Market under the symbol “ADMP.”
Preferred Stock
Our restated certificate of incorporation
provides that the Board is authorized, without further action by the stockholders (unless such stockholder action is required by
applicable law or the rules of any stock exchange or market on which our securities are then traded), to provide for the issuance
of shares of preferred stock in one or more series and, by filing a certificate of designation pursuant to the applicable law of
the State of Delaware, to establish from time to time for each such series the number of shares to be included in each such series
and to fix the designations, powers, rights and preferences of the shares of each such series, and the qualifications, limitations
and restrictions thereof, which may include, among others, dividend rights, voting rights, liquidation preferences, conversion
rights, preemptive rights, and the number of shares constituting any series or the designation of any series, any or all of which
may be greater than the rights of the common stock. Any convertible preferred stock we may issue will be convertible into our common
stock or our other securities. Conversion may be mandatory or at the holder’s option and would be at prescribed conversion
rates. We will describe in the applicable prospectus supplement the terms of the series of preferred stock being offered, including,
to the extent applicable:
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the designation of the series, which may be by distinguishing number, letter or title;
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the number of shares of the series, which number the Board may thereafter (except where otherwise provided in the certificate of designation) increase or decrease (but not below the number of shares thereof then outstanding);
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whether dividends, if any, shall be paid, and, if paid, the date or dates upon which, or other times at which, such dividends shall be payable, whether such dividends shall be cumulative or noncumulative, the rate of such dividends (which may be variable) and the relative preference in payment of dividends of such series;
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whether shares of such series shall be redeemable, the time or times when, and the price or prices at which, shares of such series shall be redeemable, the redemption price and the terms and conditions of redemption;
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the terms and amounts of any sinking fund or similar fund provided for the purchase or redemption of shares of the series;
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the amounts payable on shares of such series and the rights of holders of such shares in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of our corporation;
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whether the shares of the series shall be convertible into shares of any other class or series, or convertible into or exchangeable for debt securities or any other security, of our corporation or any other corporation, and, if so, the specification of such other class or series of such other security, the conversion or exchange price or prices, or rate or rates, any adjustments thereto, the date or dates on which such shares shall be convertible or exchangeable and other terms and conditions upon which such conversion may be made;
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the preemptive or preferential rights, if any, of the holders of shares of such series to subscribe for, purchase, receive, or otherwise acquire any part of any new or additional issue of stock of any class, whether now or hereafter authorized, or of any bonds, debentures, notes, or any of other securities, whether or not convertible into shares of common stock;
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if applicable, material U.S. federal income tax considerations applicable to the preferred stock;
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restrictions on the issuance of shares of the same series or of any other class or series; and
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the voting rights, if any, and whether full or limited, of the holders of shares of the series, which may include no voting rights, one vote per share, or such higher or lower number of votes per share as may be designated by the Board.
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Preferred stock may be issued in the future
in connection with acquisitions, financings, or other matters as the Board deems appropriate. In the event that any shares of preferred
stock are to be issued, a certificate of designation containing the rights, privileges and limitations of such series of preferred
stock may be filed with the Secretary of State of Delaware. The effect of such preferred stock is that, subject to federal securities
laws and Delaware law, the Board alone may be able to authorize the issuance of preferred stock, which could have the effect of
delaying, deferring or preventing a change in control of us without further action by the stockholders, and may adversely affect
the other rights of the holders of our common stock. The issuance of preferred stock with voting and conversion rights may also
adversely affect the voting power of holders of our common stock, including the loss of voting control to others. We do not have
any shares of our preferred stock presently outstanding.
The issuance of preferred stock, while providing
desirable flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of making it
more difficult for a third party to acquire, or of discouraging a third party from acquiring, a majority of our outstanding voting
stock. The effects of issuing preferred stock could include one or more of the following:
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decreasing the amount of earnings and assets available for distribution to holders of common stock;
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diluting the voting power of the common stock;
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impairing the liquidation rights of the common stock; or
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delaying, deferring or preventing changes in our control or management.
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Anti-Takeover Effects of Certain Provisions of our Certificate
of Incorporation, Bylaws and the DGCL
Delaware Law
We are subject to Section 203 of the DGCL.
This provision generally prohibits a Delaware corporation from engaging in any business combination with any interested stockholder
for a period of three years following the date the stockholder became an interested stockholder, unless:
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prior to such date, the board of directors approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;
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upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned by persons who are directors and also officers and by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
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on or subsequent to such date, the business combination is approved by the board of directors and authorized at an annual meeting or special meeting of stockholders and not by written consent, by the affirmative vote of at least 66-2/3% of the outstanding voting stock that is not owned by the interested stockholder.
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Section 203 defines a business combination to include:
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any merger or consolidation involving the corporation and the interested stockholder;
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any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;
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subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;
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any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or
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the receipt by the interested stockholder of the direct or indirect benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.
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In general, Section 203 defines an “interested
stockholder” as any entity or person beneficially owning 15% or more of the outstanding voting stock of a corporation, or
an affiliate or associate of the corporation and was the owner of 15% or more of the outstanding voting stock of a corporation
at any time within three years prior to the time of determination of interested stockholder status; and any entity or person affiliated
with or directly or indirectly controlling or controlled by such entity or person, who presently holds the power to direct management
or is in a director or officer of the corporation.
These statutory provisions could delay or
frustrate the removal of incumbent directors or a change in control of our company. They could also discourage, impede, or prevent
a merger, tender offer, or proxy contest, even if such event would be favorable to the interests of stockholders.
Restated Certificate of Incorporation and Bylaw Provisions
Our restated certificate of incorporation
and bylaws contain provisions that could have the effect of discouraging potential acquisition proposals or making a tender offer
or delaying or preventing a change in control, including changes a stockholder might consider favorable. In particular, the restated
certificate of incorporation and bylaws, as applicable, among other things:
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permit the Board to issue up to 10,000,000 shares of preferred stock, without further action by the stockholders, with any rights, preferences and privileges as they may designate;
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provide that all vacancies on the Board, including newly created directorships, may, except as otherwise required by law, or as determined otherwise by resolution of the Board, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum;
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do not provide for cumulative voting rights (therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose);
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provide that no action shall be taken by the stockholders, except at an annual or special meeting of stockholders, and no action shall be taken by the stockholders by written consent or by electronic transmission;
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set forth an advance notice procedure with regard to the nomination, other than by or at the direction of the Board, of candidates for election as directors and with regard to business to be brought before a meeting of stockholders; and
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provide the Board with the ability to alter its bylaws without stockholder approval.
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Such provisions may make it more difficult
for holders of our common stock to replace our board of directors and may have the effect of discouraging a third-party from making
tender offers for our shares or acquiring us, even if doing so would be beneficial to our stockholders. These provisions also may
have the effect of preventing changes in our management.
Transfer Agent and Registrar
The Transfer Agent and Registrar for our
common stock is First American Stock Transfer, Inc. The transfer agent for any series of preferred stock that we may offer under
this prospectus will be named and described in the prospectus supplement related to that series.
Indemnification of Directors and Officers
Section 145 of the DGCL provides, in general,
that a corporation incorporated under the laws of the State of Delaware, as we are, may indemnify any person who was or is a party
or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than a derivative
action by or in the right of the corporation) by reason of the fact that such person is or was a director, officer, employee or
agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another
enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by such person in connection with such action, suit or proceeding if such person acted in good faith and in a manner such
person reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action
or proceeding, had no reasonable cause to believe such person’s conduct was unlawful. In the case of a derivative action,
a Delaware corporation may indemnify any such person against expenses (including attorneys’ fees) actually and reasonably
incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good faith
and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation, except that no
indemnification will be made in respect of any claim, issue or matter as to which such person will have been adjudged to be liable
to the corporation, unless and only to the extent that the Court of Chancery of the State of Delaware or any other court in which
such action was brought determines such person is fairly and reasonably entitled to indemnity for such expenses.
Our bylaws provide that we will indemnify
our directors and officers, to the maximum extent permitted by the DGCL, or any other applicable law, except that we are not required
to indemnify any director or officer in connection with any proceeding initiated by such person, unless (i) such indemnification
is expressly required to be made by law or the bylaws, (ii) the proceeding was authorized by the Board, or (iii) such indemnification
is provided by us pursuant to the powers vested in the company under the DGCL or any other applicable law. In addition, our bylaws
provide that we may indemnify our employees and other agents as set forth in the DGCL or any other applicable law. Our bylaws also
provide for the advancement of expenses incurred by a person who was or is a party or is threatened to be made a party to any threatened,
pending or completed proceeding by reason of the fact that the person is or was a director or officer of the company, or is or
was serving at the request of the company as a director or officer of another corporation, partnership, joint venture, trust or
other enterprise, prior to the final disposition of the proceeding, provided, however, that if the DGCL requires, an advancement
of expenses incurred by a director or officer in his or her capacity as a director or officer shall be made only upon delivery
to the company of an undertaking by or on behalf of the indemnitee to repay all amounts so advanced if it shall ultimately be determined
by final judicial decision from which there is no further right to appeal the indemnitee is not entitled to be indemnified for
such expenses under the bylaws. In addition, our restated certificate of incorporation provides that the liability of any of our
directors for monetary damages shall be eliminated to the fullest extent under applicable law. We carry officer and director liability
insurance with respect to certain matters, including matters arising under the Securities Act of 1933, as amended.
Disclosure of Commission Position on Indemnification for
Securities Act Liabilities
Insofar as indemnification for liabilities
arising under the Securities Act, may be permitted to our directors, officers and persons controlling us, we have been advised
that it is the Securities and Exchange Commission’s opinion that such indemnification is against public policy as expressed
in the Securities Act and is, therefore, unenforceable.
DESCRIPTION OF WARRANTS
The following description, together with
the additional information we may include in any applicable prospectus supplements, summarizes the material terms and provisions
of the warrants that we may offer under this prospectus and the related warrant agreements and warrant certificates. While the
terms summarized below will apply generally to any warrants that we may offer, we will describe the particular terms of any series
of warrants in more detail in the applicable prospectus supplement, information incorporated by reference or a free writing prospectus.
If we so indicate in the prospectus supplement, information incorporated by reference or free writing prospectus, the terms of
any warrants offered under that prospectus supplement, information incorporated by reference and free writing prospectus may differ
from the terms described below. If there are differences between that prospectus supplement, information incorporated by reference
or free writing prospectus and this prospectus, such prospectus supplement, information incorporated by reference or free writing
prospectus will control. Thus, the statements we make in this section may not apply to a particular series of warrants. Specific
warrant agreements will contain additional important terms and provisions and will be incorporated by reference as an exhibit to
the registration statement which includes this prospectus. The following description, and any description of the warrants included
in a prospectus supplement, may not be complete and is subject to and qualified in its entirety by reference to the terms and provisions
of the applicable warrant agreement, which we will file with the SEC in connection with any offering of warrants.
We may issue warrants for the purchase of
common stock, preferred stock, or units, in one or more series. We may issue warrants independently or together with common stock,
preferred stock and/or units, and the warrants may be attached to or separate from these securities.
We will evidence each series of warrants
by warrant certificates that we may issue under a separate agreement. We may enter into the warrant agreement with a warrant agent
which may be a bank or other institution that we select. We may also choose to act as our own warrant agent. We will indicate the
name and address of any such warrant agent in the applicable prospectus supplement relating to a particular series of warrants.
We will describe in the applicable prospectus
supplement, information incorporated by reference or free writing prospectus the terms of the series of warrants, including:
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the title of the warrants;
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the offering price and aggregate number of warrants offered;
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the currency for which the warrants may be purchased;
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if applicable, the designation and terms of the securities with which the warrants are issued and the number of warrants issued with each such security;
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if applicable, the date on and after which the warrants and the related securities will be separately transferable;
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if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time;
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in the case of warrants to purchase common stock or preferred stock, the number of shares of common stock or preferred stock, as the case may be, purchasable upon the exercise of one warrant and the price at which these shares may be purchased upon such exercise;
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the warrant agreement under which the warrants will be issued;
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the effect of any merger, consolidation, sale or other disposition of our business on the warrant agreement and the warrants;
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anti-dilution provisions of the warrants, if any;
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the terms of any rights to redeem or call the warrants;
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any provisions for changes to or adjustments in the exercise price or number of securities issuable upon exercise of the warrants;
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the dates on which the right to exercise the warrants will commence and expire or, if the warrants are not continuously exercisable during that period, the specific date or dates on which the warrants will be exercisable;
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the manner in which the warrant agreement and warrants may be modified;
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the identities of the warrant agent and any calculation or other agent for the warrants;
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a discussion of any material or special U.S. federal income tax consequences of holding or exercising the warrants;
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the terms of the securities issuable upon exercise of the warrants;
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information with respect to book-entry procedures, if any;
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any securities exchange or quotation system on which the warrants or any securities deliverable upon exercise of the warrants may be listed; and
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any other specific terms, preferences, rights or limitations of or restrictions on the warrants.
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Unless otherwise described in an applicable
prospectus supplement, information incorporated by reference or free writing prospectus, before exercising their warrants, holders
of warrants will not have any of the rights of holders of the securities purchasable upon such exercise, including, in the case
of warrants to purchase common stock or preferred stock, the right to receive dividends, if any, or, payments upon our liquidation,
dissolution or winding up, or to exercise voting rights, if any.
Exercise of Warrants
Each warrant will entitle the holder to
purchase the securities that we specify in the applicable prospectus supplement, information incorporated by reference or free
writing prospectus, at the exercise price that we describe therein. Unless we otherwise specify in the applicable prospectus supplement,
information incorporated by reference or free writing prospectus, holders of the warrants may exercise the warrants at any time
up to the close of business on the expiration date that we set forth in the applicable prospectus supplement, information incorporated
by reference or free writing prospectus. After the close of business on the expiration date, unexercised warrants will become void.
A warrant will entitle the holder to purchase
for cash an amount of securities at an exercise price that will be stated in, or that will be determinable as described in, the
applicable prospectus supplement, information incorporated by reference or free writing prospectus. Warrants may be exercised,
or redeemed, as set forth in the applicable offering material.
Upon receipt of the required payment and
the warrant certificate properly completed and duly executed at the corporate trust office of the warrant agent or any other office
indicated in the applicable prospectus supplement, information incorporated by reference or free writing prospectus, we will issue
and deliver the securities purchasable upon such exercise. If fewer than all of the warrants represented by the warrant certificate
are exercised, then we will issue a new warrant certificate for the remaining amount of warrants. If we so indicate in the applicable
prospectus supplement, information incorporated by reference or free writing prospectus, holders of the warrants may surrender
securities as all or part of the exercise price for warrants.
Warrant Agreement
We may issue the warrants in one or more
series under one or more warrant agreements, each to be entered into between us and a warrant agent, which may include a bank,
trust company or other financial institution as warrant agent. We may add, replace or terminate warrant agents from time to time.
We may also choose to act as our own warrant agent or may choose one of our subsidiaries to do so.
The warrant agent under a warrant agreement
will act solely as our agent in connection with the warrants issued under that agreement, and will not assume any obligation or
relationship of agency or trust with any holder of any warrant. Unless otherwise provided in the applicable warrant or warrant
agreement, any holder of warrants may, without the consent of the related warrant agent or the holder of any other warrant, enforce
by appropriate legal action, on its own behalf, its right to exercise those warrants in accordance with their terms.
Form, Exchange and Transfer
We may issue the warrants in registered
form or bearer form. Warrants issued in registered form, that is, book-entry form, will be represented by a global security registered
in the name of a depository, which will be the holder of all the warrants represented by the global security. Those investors who
own beneficial interests in a global warrant will do so through participants in the depository’s system, and the rights of
these indirect owners will be governed solely by the applicable procedures of the depository and its participants. In addition,
we may issue warrants in non-global form, that is, bearer form. If any warrants are issued in non-global form, warrant certificates
may be exchanged for new warrant certificates of different denominations, and holders may exchange, transfer or exercise their
warrants at the warrant agent’s office or any other office indicated in the applicable prospectus supplement, information
incorporated by reference or free writing prospectus.
DESCRIPTION OF UNITS
We may issue units comprised of one or more
of the other securities described in this prospectus in any combination. Each unit will be issued so that the holder of the unit
is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a
holder of each included security. The unit agreement under which a unit is issued may provide that the securities included in the
unit may not be held or transferred separately, at any time or at any time before a specified date.
The following description is a summary of
selected provisions relating to units that we may offer. The summary is not complete. When units are offered in the future, a prospectus
supplement, information incorporated by reference or a free writing prospectus, as applicable, will explain the particular terms
of those securities and the extent to which these general provisions may apply. The specific terms of the units as described in
a prospectus supplement, information incorporated by reference, or free writing prospectus will supplement and, if applicable,
may modify or replace the general terms described in this section.
This summary and any description of units
in the applicable prospectus supplement, information incorporated by reference or free writing prospectus is subject to and is
qualified in its entirety by reference to the unit agreement, collateral arrangements and depositary arrangements, if applicable.
We will file each of these documents, as applicable, with the SEC and incorporate them by reference as an exhibit to the registration
statement of which this prospectus is a part on or before the time we issue a series of units. See “Where You Can Find More
Information” and “Incorporation of Documents by Reference” for information on how to obtain a copy of a document
when it is filed.
The applicable prospectus supplement, information
incorporated by reference or free writing prospectus will describe:
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the designation and terms of the units and of the securities comprising the units, including whether and under what circumstances those securities may be held or transferred separately;
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any unit agreement under which the units will be issued;
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any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units; and
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whether the units will be issued in fully registered or global form.
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The applicable provisions described in this
section, as well as those described under “Description of Capital Stock” and “Description of Warrants”
above, will apply to each unit and to each security included in each unit, respectively.
PLAN OF DISTRIBUTION
We may sell the securities being offered
pursuant to this prospectus to or through underwriters or dealers, through agents, or directly to one or more purchasers (including
our affiliates and shareholders), through a specific bidding or auction process, a rights offering or otherwise, through a combination
of these methods or through any other methods described in a prospectus supplement. The applicable prospectus supplement will describe
the terms of the offering of the securities, including, to the extent applicable:
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the name or names of any underwriters, if any, and if required, any dealers or agents;
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the purchase price of the securities or other consideration therefor, and the proceeds we will receive from the sale;
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any over-allotment option under which the underwriters may purchase additional securities from us;
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any underwriting discounts, concessions, commissions and other items constituting underwriters’ compensation;
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any public offering price;
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any discounts or concessions allowed or reallowed or paid to dealers;
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the nature of the underwriter’s or agent’s obligations, if any, to take the securities; and
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any securities exchange or market on which the securities may be listed.
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The distribution of securities may be effected,
from time to time, in one or more transactions, including:
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block transactions (which may involve crosses) and transactions on the Nasdaq Capital Market or any other organized market where the securities may be traded;
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purchases by a broker-dealer as principal and resale by the broker-dealer for its own account pursuant to a prospectus supplement;
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ordinary brokerage transactions and transactions in which a broker-dealer solicits purchasers;
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sales “at the market” to or through a market maker or into an existing trading market, on an exchange or otherwise; and
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sales in other ways not involving market makers or established trading markets, including direct sales to purchasers.
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The securities may be sold at a fixed price
or prices, which may be changed, or at market prices prevailing at the time of sale, at prices relating to the prevailing market
prices, or at negotiated prices. The consideration may be cash or another form negotiated by the parties.
We may also make direct sales through subscription
rights distributed to our existing shareholders on a pro rata basis, which may or may not be transferable. In any distribution
of subscription rights to our shareholders, if all of the underlying securities are not subscribed for, we may then sell the unsubscribed
securities directly to third parties or may engage the services of one or more underwriters, dealers or agents, including standby
underwriters, to sell the unsubscribed securities to third parties.
Some or all of the securities that we offer
through this prospectus may be new issues of securities with no established trading market. Any underwriters to whom we sell our
securities for public offering and sale may make a market in those securities, but they will not be obligated to do so and they
may discontinue any market making at any time without notice. Accordingly, we cannot assure you of the liquidity of, or continued
trading markets for, any securities that we offer.
Only underwriters named in the prospectus
supplement are underwriters of the securities offered by the prospectus supplement.
If underwriters are used in an offering,
we will execute an underwriting agreement with such underwriters and will specify the name of each underwriter and the terms of
the transaction (including any underwriting discounts and other terms constituting compensation of the underwriters and any dealers)
in a prospectus supplement. The securities may be offered to the public either through underwriting syndicates represented by managing
underwriters or directly by one or more investment banking firms or others, as designated. If an underwriting syndicate is used,
the managing underwriter(s) will be specified on the cover of the prospectus supplement. If underwriters are used in the sale,
the offered securities will be acquired by the underwriters for their own accounts and may be resold from time to time in one or
more transactions, including negotiated transactions, at a fixed public offering price or at varying prices determined at the time
of sale, or under delayed delivery contracts or other contractual commitments. Any public offering price and any discounts or concessions
allowed or reallowed or paid to dealers may be changed from time to time. We may use underwriters with whom we have a material
relationship. We will describe in the prospectus supplement, naming the underwriter, the nature of any such relationship. Unless
otherwise set forth in the prospectus supplement, the obligations of the underwriters to purchase the offered securities will be
subject to conditions precedent and the underwriters will be obligated to purchase all of the offered securities if any are purchased.
We may grant to the underwriters options
to purchase additional securities to cover over-allotments, if any, at the public offering price, with additional underwriting
commissions or discounts, as may be set forth in a related prospectus supplement. The terms of any over-allotment option will be
set forth in the prospectus supplement for those securities.
If we use a dealer in the sale of the securities
being offered pursuant to this prospectus or any prospectus supplement, we or an underwriter will sell the securities to the dealer,
as principal. The dealer may then resell the securities to the public at varying prices to be determined by the dealer at the time
of resale. To the extent required, we will set forth in the prospectus supplement, document incorporated by reference or free writing
prospectus, as applicable, the name of the dealer and the terms of the transactions.
We may directly solicit offers to purchase
the securities and may make sales of securities directly to institutional investors or others. These persons may be deemed to be
underwriters with respect to any resale of the securities. To the extent required, the prospectus supplement, document incorporated
by reference or free writing prospectus, as applicable, will describe the terms of any such sales, including the terms of any bidding
or auction process, if used.
We may sell the securities directly or through
agents we designate from time to time. We will name any agent involved in the offering and sale of securities and we will describe
any commissions we will pay the agent in the prospectus supplement. Unless the prospectus supplement states otherwise, any agent
will act on a best-efforts basis for the period of its appointment.
We may authorize agents or underwriters
to solicit offers by institutional investors to purchase securities from us at the public offering price set forth in the prospectus
supplement pursuant to delayed delivery contracts providing for payment and delivery on a specified date in the future. We will
describe the conditions to these contracts and the commissions we must pay for solicitation of these contracts in the prospectus
supplement.
In connection with the sale of the securities,
underwriters, dealers or agents may receive compensation from us or from purchasers of the securities for whom they act as agents
in the form of discounts, concessions, commissions or other payments. Underwriters may sell the securities to or through dealers,
and those dealers may receive compensation in the form of discounts, concessions or commissions from the underwriters or commissions
from the purchasers for whom they may act as agents. Underwriters, dealers and agents that participate in the distribution of the
securities, and any institutional investors or others that purchase securities directly and then resell the securities, may be
deemed to be underwriters, and any discounts or commissions received by them from us and any profit on the resale of the securities
by them may be deemed to be underwriting discounts and commissions under the Securities Act. If such persons were deemed to be
underwriters, they may be subject to statutory liabilities under the Securities Act.
We may provide agents and underwriters with
indemnification against particular civil liabilities, including liabilities under the Securities Act, or contribution with respect
to payments that the agents or underwriters may make with respect to such liabilities. Agents and underwriters may engage in transactions
with, or perform services for, us in the ordinary course of business.
In addition, we may enter into derivative
transactions with third parties (including the writing of options), or sell securities not covered by this prospectus to third
parties in privately negotiated transactions. If the applicable prospectus supplement indicates, in connection with such a transaction,
the third parties may, pursuant to this prospectus and the applicable prospectus supplement, sell securities covered by this prospectus
and the applicable prospectus supplement. If so, the third party may use securities borrowed from us or others to settle such sales
and may use securities received from us to close out any related short positions. We may also loan or pledge securities covered
by this prospectus and the applicable prospectus supplement to third parties, who may sell the loaned securities or, in an event
of default in the case of a pledge, sell the pledged securities pursuant to this prospectus and the applicable prospectus supplement.
The third party in such sale transactions will be an underwriter and will be identified in the applicable prospectus supplement
or in a post-effective amendment.
To facilitate an offering of a series of
securities, persons participating in the offering may engage in transactions that stabilize, maintain, or otherwise affect the
market price of the securities. This may include over-allotments or short sales of the securities, which involves the sale by persons
participating in the offering of more securities than have been sold to them by us. In those circumstances, such persons would
cover such over-allotments or short positions by purchasing in the open market or by exercising the over-allotment option granted
to those persons. In addition, those persons may stabilize or maintain the price of the securities by bidding for or purchasing
securities in the open market or by imposing penalty bids, whereby selling concessions allowed to underwriters or dealers participating
in any such offering may be reclaimed if securities sold by them are repurchased in connection with stabilization transactions.
The effect of these transactions may be to stabilize or maintain the market price of the securities at a level above that which
might otherwise prevail in the open market. Such transactions, if commenced, may be discontinued at any time. We make no representation
or prediction as to the direction or magnitude of any effect that the transactions described above, if implemented, may have on
the price of our securities.
Any common stock sold pursuant to a prospectus
supplement will be eligible for quotation and trading on the Nasdaq Capital Market. Any underwriters to whom securities are sold
by us for public offering and sale may make a market in the securities, but such underwriters will not be obligated to do so and
may discontinue any market making at any time without notice. Any person participating in the distribution of common stock registered
under the registration statement that includes this prospectus will be subject to applicable provisions of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, and the applicable SEC rules and regulations, including, among others, Regulation
M, which may limit the timing of purchases and sales of any of our common stock by any such person. Furthermore, Regulation M may
restrict the ability of any person engaged in the distribution of our common stock to engage in market-making activities with respect
to our common stock. These restrictions may affect the marketability of our common stock and the ability of any person or entity
to engage in market-making activities with respect to our common stock. Any underwriters
or agents that are qualified market makers on the Nasdaq Capital Market may engage in passive market making transactions in the
common stock on the Nasdaq Capital Market in accordance with Regulation M under the Exchange Act, during the business day prior
to the pricing of the offering, before the commencement of offers or sales of the common stock. Passive market makers must comply
with applicable volume and price limitations and must be identified as passive market makers. In general, a passive market maker
must display its bid at a price not in excess of the highest independent bid for such security; if all independent bids are lowered
below the passive market maker’s bid, however, the passive market maker’s bid must then be lowered when certain purchase
limits are exceeded. Passive market making may stabilize the market price of the securities at a level above that which might otherwise
prevail in the open market and, if commenced, may be discontinued at any time.
In order to comply with the securities laws
of some states, if applicable, the securities offered pursuant to this prospectus will be sold in those states only through registered
or licensed brokers or dealers. In addition, in some states securities may not be sold, unless they have been registered or qualified
for sale in the applicable state or an exemption from the registration or qualification requirement is available and complied with.
In compliance with the guidelines of the
Financial Industry Regulatory Authority (“FINRA”), the aggregate maximum discount, commission or agency fees or other
items constituting underwriting compensation to be received by any FINRA member or independent broker-dealer will not exceed 8%
of any offering pursuant to this prospectus and any applicable prospectus supplement, as the case may be.
If more than 10% of the net proceeds of
any offering of securities made under this prospectus will be received by FINRA members participating in the offering or affiliates
or associated persons of such FINRA members, the offering will be conducted in accordance with FINRA Conduct Rule 5110(h).
If the aggregate market value of our voting
and non-voting common equity held by non-affiliates is less than $75,000,000, and if required by the rules of the SEC, the amount
of securities we may offer hereunder will be limited such that the aggregate market value of securities sold by us during a period
of 12 calendar months cannot exceed one-third of the aggregate market value of the voting and non-voting common equity held by
non-affiliates.
To the extent required, this prospectus
may be amended or supplemented from time to time to describe a specific plan of distribution.
LEGAL MATTERS
The validity of the issuance of the securities
offered hereby will be passed upon for us by Weintraub Tobin Chediak Coleman Grodin, Law Corporation.
EXPERTS
The financial statements as of December
31, 2017 and 2016, and for the two years in the period ended December 31, 2017, included in this prospectus have been so included
in reliance on the report of Mayer Hoffman McCann P.C., an independent registered public accounting firm, appearing elsewhere herein,
given on the authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration
statement on Form S-3 under the Securities Act of 1933, as amended (“Securities Act”), with respect to the securities
covered by this prospectus. This prospectus and any prospectus supplement which form a part of the registration statement, do not
contain all of the information set forth in the registration statement or the exhibits and schedules filed therewith. For further
information with respect to us and the securities covered by this prospectus, please see the registration statement and the exhibits
filed with the registration statement. Any statements made in this prospectus or any prospectus supplement concerning legal documents
are not necessarily complete and you should read the documents that are filed as exhibits to the registration statement or otherwise
filed with the SEC for a more complete understanding of the document or matter. We file annual, quarterly and current reports,
proxy statements and other information with the SEC. You may read and copy the registration statement and exhibits filed with the
registration statement, and other documents that we file with the SEC, at the Public Reference Room maintained by the SEC, located
at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for more information about the operation of
the Public Reference Room. The SEC also maintains an Internet website that contains reports, proxy and information statements and
other information regarding registrants that file electronically with the SEC. The address of the website is http://www.sec.gov.
INCORPORATION OF DOCUMENTS BY REFERENCE
We have filed a registration statement on
Form S-3 with the Securities and Exchange Commission under the Securities Act. This prospectus is part of the registration statement
but the registration statement includes and incorporates by reference additional information and exhibits. The Securities and Exchange
Commission permits us to “incorporate by reference” the information contained in documents we file with the Securities
and Exchange Commission, which means that we can disclose important information to you by referring you to those documents rather
than by including them in this prospectus. Information that is incorporated by reference is considered to be part of this prospectus
and you should read it with the same care that you read this prospectus. Information that we file later with the Securities and
Exchange Commission will automatically update and supersede the information that is either contained, or incorporated by reference,
in this prospectus, and will be considered to be a part of this prospectus from the date those documents are filed. We have filed
with the Securities and Exchange Commission, and incorporate by reference in this prospectus:
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Annual Report on Form 10-K for the year ended December 31, 2017, filed on March 16, 2018;
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Amendment No. 1 to Annual Report on Form 10-K/A, filed April 30, 2018;
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Quarterly Report on Form 10-Q for the period ended March 31, 2018, filed on May 10, 2018;
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Current Reports on Form 8-K (other than information furnished rather than filed) filed on January 5, 2018, February 27, 2018, May 11, 2018, July 2, 2018, and July 2, 2018;
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The description of our common stock contained in our Form 8-A filed on December 11, 2013.
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All documents that we file with the Securities
and Exchange Commission under the terms of Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (1) on or after the date of initial
filing of the registration statement of which this prospectus is a part and prior to the effectiveness of the registration statement,
and (2) on or after the date of this prospectus until the earlier of the date on which all of the securities registered hereunder
have been sold or the registration statement of which this prospectus is a part has been withdrawn shall be deemed incorporated
by reference in this prospectus and to be in part of this prospectus from the date of filing of those documents. We are not, however,
incorporating, in each case, any documents or information that we are deemed to furnish and not file in accordance with Securities
and Exchange Commission rules, including, without limitation, any information filed under items 2.02 or 7.01 of Form 8-K, unless
such Form 8-K expressly provides to the contrary.
You may request, and we will provide you
with, a copy of these filings, at no cost, by calling us at (858) 997-2400 or by writing to us at the following address:
Adamis Pharmaceuticals Corporation
11682 El Camino Real, Suite 300
San Diego, CA 92130
Attn: Corporate Secretary
11,600,000 Shares of Common Stock
PROSPECTUS SUPPLEMENT
MAXIM GROUP LLC
Placement Agent
February 21, 2020
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