Filed
pursuant to Rule 424(b)(5)
Registration
No. 333-219202
PROSPECTUS
SUPPLEMENT
(To
Prospectus Dated March 28, 2018)
2,135,550
Shares
PolarityTE,
Inc.
Common
Stock
We
are offering 2,135,550 shares of our common stock.
Our
common stock is listed on the Nasdaq Capital Market under the symbol “COOL.” On June 4, 2018, the last reported sale
price of our common stock on the Nasdaq Capital Market was $27.82 per share.
The
underwriter has agreed to purchase the common stock from us at a price of $23.65 per share, which will result in approximately
$50.5 million of proceeds to us, before offering expenses, and assuming no exercise by the underwriter of the option described
below. The underwriter proposes to offer the shares of common stock from time to time for sale in one or more transactions on
The NASDAQ Capital Market, the existing trading market for our common stock, in negotiated transactions or otherwise at market
prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices, subject to receipt
and acceptance by it and subject to its right to reject any order in whole or in part. See “Underwriting.”
Our
business and an investment in our securities involve a high degree of risk. See “Risk Factors” beginning on page S-5
of this prospectus supplement, in the accompanying prospectus and in the other documents that are incorporated by reference herein
for a discussion of information that you should consider before investing in our securities.
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 supplement or the accompanying prospectus. Any representation to the contrary
is a criminal offense.
We
have granted the underwriter an option for a period of 30 days to purchase from us up to an additional 320,332 shares of our common
stock at the price set forth above. If the underwriter exercises its option in full, the total proceeds to us, before expenses,
will be approximately $58.1 million.
Delivery
of the shares of common stock is expected to be made on or about June 7, 2018.
Cantor
The
date of this prospectus supplement is June 5, 2018.
TABLE
OF CONTENTS
You
should rely only on the information contained in or incorporated by reference in this prospectus supplement and the accompanying
prospectus. We have not, and the underwriter has not, authorized anyone to provide you with different information. If anyone provides
you with different or inconsistent information, you should not rely on it. We are not, and the underwriter is not, making an offer
to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information
appearing in this prospectus supplement, the accompanying prospectus, and the documents incorporated by reference in this prospectus
supplement and the accompanying prospectus, is accurate only as of the date of those respective documents. Our business, financial
condition, results of operations and prospects may have changed since those dates. You should read this prospectus supplement,
the accompanying prospectus, and the documents incorporated by reference in this prospectus supplement and the accompanying prospectus,
in their entirety before making an investment decision. You should also read and consider the information in the documents to
which we have referred you in the sections of this prospectus supplement entitled “Where You Can Find More Information”
and “Incorporation of Certain Documents by Reference.”
About
This Prospectus Supplement
This
prospectus supplement and the accompanying prospectus relate to a registration statement (No. 333-219202) that we filed with the
Securities and Exchange Commission (the “SEC”) using a “shelf” registration process. Under this shelf
registration process, we may, from time to time, in one or more offerings sell any combination of common stock, preferred stock,
warrants or units, such combination not to exceed $100,000,000 in the aggregate.
This
prospectus supplement and the accompanying prospectus provide specific information about the offering by us of our securities
under the shelf registration statement. This document is in two parts. The first part is this prospectus supplement, which describes
the terms of this offering and also adds to and updates information contained in the accompanying prospectus and the documents
incorporated by reference into this prospectus supplement and the accompanying prospectus. The second part, the accompanying prospectus
dated March 28, 2018, including the documents incorporated by reference therein, provides more general information. Generally,
when we refer to this prospectus, we are referring to both parts of this document combined. To the extent there is a conflict
between the information contained in this prospectus supplement, on the one hand, and the information contained in the accompanying
prospectus or in any document incorporated by reference that was filed with the SEC before the date of this prospectus supplement,
on the other hand, you should rely on the information in this prospectus supplement. If any statement in one of these documents
is inconsistent with a statement in another document having a later date—for example, a document incorporated by reference
in the accompanying prospectus—the statement in the document having the later date modifies or supersedes the earlier statement.
Unless
otherwise mentioned or unless the context requires otherwise, all references in this prospectus supplement to “PolarityTE,”
“the Company,” “our company,” “we,” “us,” “our” or similar references
mean collectively PolarityTE, Inc. and its subsidiaries.
This
prospectus supplement, the accompanying prospectus and the information incorporated herein and therein by reference include trademarks,
service marks and trade names owned by us or other companies. All trademarks, service marks and trade names included or incorporated
by reference into this prospectus supplement or the accompanying prospectus are the property of their respective owners.
PROSPECTUS
SUPPLEMENT SUMMARY
This
summary highlights information contained elsewhere in this prospectus supplement and the accompanying prospectus or incorporated
by reference herein or therein. Because it is a summary, it does not contain all the information you should consider before investing
in our common stock. You should carefully read this entire prospectus supplement and the accompanying prospectus, including the
“Risk Factors” section beginning on page S-5 of this prospectus supplement, along with our consolidated financial
statements and notes to those consolidated financial statements and the other information incorporated by reference in this prospectus
supplement and the accompanying prospectus, before making an investment decision.
Overview
We
are a commercial-stage biotechnology and regenerative biomaterials company focused on transforming the lives of patients by discovering,
designing and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering
and material sciences. We believe that our PolarityTE platform technology is a new approach to pragmatic and functional tissue
regeneration that has the potential to address many of the challenges currently facing the regenerative medicine and cell therapy
markets to date. Recognizing the natural complexity of human tissue, our core “TE” platform begins with a small piece
of the patient’s own, or autologous, healthy tissue, rather than artificially manipulated individual cells. From this small
piece of healthy autologous tissue, we create an easily deployable, dynamic and self-propagating product, which is designed to
enhance and stimulate the patient’s own cells to regenerate the target tissues. Rather than manufacturing with synthetic
and foreign materials within artificially engineered environments, we believe our proprietary method promotes and accelerates
the patient’s tissues to undergo a form of effective regenerative healing, and uses the patient’s own body to support
the regenerative process to create the same tissue from which they were derived.
We
believe our core “TE” platform has applications across many different indications, including, but not limited to,
the regrowth of skin, bone, cartilage, fat, muscle, blood vessels and neural elements as well as solid and hollow organ composite
tissue systems. Our first product, SkinTE™, is registered with the United States Food and Drug Administration (“FDA”)
pursuant to the regulatory pathway for human cells, tissues, and cellular and tissue-based products (“HCT/Ps”) regulated
solely under Section 361 of the Public Health Service Act (“361 HCT/Ps”), which permits qualifying products to be
marketed without first obtaining FDA marketing authorization or approval, and is commercially available for the repair, reconstruction,
replacement and regeneration of skin (i.e., homologous uses) for patients who have suffered from wounds, burns or injuries that
require skin coverage over both small and large areas of their body.
To
date, SkinTE has been used in a limited number of patients suffering from replacement of prior skin grafts, acute surgical reconstruction,
acute wound treatment, chronic wound treatment, acute burn treatment, post-burn reconstruction, scar and contracture revision,
keloid and hypertrophic scar revision, subacute burn and wound reconstruction, coverage and/or replacement of skin substitutes,
failed skin graft replacement, failed flaps coverage and soft tissue coverage in previously infected defects. The results we have
observed from the ongoing early stages of the human clinical application of SkinTE continue to be correlative with our preclinical
observations.
Recent
Developments
Asset
Acquisition
On
March 2, 2018, PolarityTE, along with its wholly owned subsidiary, Utah CRO Services, Inc., a Nevada corporation (“Acquisition
Co.”), entered into an asset purchase agreement (the “APA”) with Ibex Group, L.L.C., a Utah limited liability
company, and Ibex Preclinical Research, Inc
.
, a Utah corporation (collectively the “Seller”). The transaction
closed on May 3, 2018.
Under
the APA the Company purchased from Seller the assets and rights to its preclinical research and veterinary sciences business and
related real estate (as more fully described below). The business consists of a “
good laboratory practices
”
(GLP) compliant preclinical research facility, including vivarium, operating rooms, preparation rooms, storage facilities, and
surgical and imaging equipment.
The
purchase price was $1.6 million of which $266,667 in cash was paid at closing and the balance by delivery of a promissory note
to Seller for $1,333,333 payable in five equal installments beginning on the six month anniversary of issuance and continuing
on each six-month anniversary thereafter with interest at the rate of 3.5% per annum.
Concurrently
with the execution and delivery of the APA, on March 2, 2018, the Company entered into a purchase and sale agreement (the “PSA”)
with Seller to purchase two parcels of real property in Cache County, Utah, consisting of approximately 1.75 combined gross acres
of land, together with the buildings, structures, fixtures, and personal property located on the real property. The transaction
also closed on May 3, 2018. The purchase price for the property was $2.0 million, which was paid in cash at closing.
Preferred
Stock Exchange and Conversion
On
February 6, 2018, 15,756 Series B Preferred Shares were converted into 262,606 shares of common stock.
On
March 6, 2018, we entered into separate exchange agreements with holders of 100% of our outstanding Series F Preferred Stock,
and warrants to purchase shares of our common stock issued in connection with the Series F Preferred Stock (such warrants and
Series F Preferred Stock collectively referred to as the “Exchange Securities”) to exchange the Exchange Securities
and unpaid dividends on the Series F Preferred Stock, for common stock (the “Exchange”).
The
Exchange resulted in the following issuances: (A) all outstanding shares of Series F Preferred Stock were exchanged into 972,067
shares of restricted common stock at an effective conversion price of $18.26 per share of common stock (the closing price of our
common stock on the Nasdaq Capital Market on February 26, 2018); (B) the right to receive 6% dividends underlying Series F Preferred
Stock was terminated and in exchange 31,324 shares of restricted common stock were issued; and (C) 322,727 warrants to purchase
common stock were exchanged for 151,872 shares of restricted common stock.
As
part of the Exchange, the holders relinquished any and all rights related to the Exchange Securities, the respective governing
and other related agreements and certificates of designation, including any related dividends, adjustment of conversion or exercise
prices and repayment options. The registration rights agreement with the holders of the Series F Preferred Stock was terminated
and the holders of the Series F Preferred Stock waived the Company’s obligation to register the shares of common stock issuable
upon conversion of Series F Preferred Stock or upon exercise of the warrants, and waived any damages, penalties and defaults related
to the Company failing to file or have declared effective a registration statement covering those shares.
On
March 6, 2018, we received conversion notices from holders of 100% of the then outstanding shares of Series A Preferred Stock,
Series B Preferred Stock and Series E Preferred Stock and issued an aggregate of 7,949,252 shares of common stock to such holders
(the “Conversions”).
The
shares of Series E Preferred Stock were held by Dr. Denver Lough, our Chief Executive Officer. On March 6, 2018, we entered into
a registration rights agreement with Dr. Denver Lough, pursuant to which we agreed to file a registration statement to register
the resale of 7,050,000 shares of common stock issued upon conversion of the Series E Preferred Stock within six months and to
cause such registration statement to be declared effective by the SEC as promptly as possible following its filing. Any sales
of shares under the registration statement are subject to certain limitations as specified with more particularity in the registration
rights agreement. In connection with the Exchange, certain of the holders of Exchange Securities granted Dr. Lough an irrevocable
proxy to vote an aggregate of 797,296 shares of common stock held by such holders at any vote of our stockholders. Following the
Exchange, Dr. Lough is entitled to vote a total of 7,847,296 shares of common stock (inclusive of all shares which he beneficially
owns and holds as of the date of this prospectus), plus any shares he acquires pursuant to the exercise of vested options, on
any matter for which a vote of our stockholders is sought or required. In connection with this offering, Dr. Lough entered into
a lock-up agreement with the underwriter that prevents him from selling any shares of our common stock during the period from
the date of the underwriting agreement for this offering through October 9, 2018.
On
March 7, 2018, we filed a Certificate of Elimination with the Secretary of State of the State of Delaware terminating our Series
A, Series B, Series C, Series D, Series E and Series F Preferred Stock and thereafter no shares of our preferred stock remained
so designated.
April
2018 Public Offering
On
April 12, 2018, PolarityTE entered into an underwriting agreement with Cantor Fitzgerald & Co., as underwriter, relating to
the issuance and sale of 2,335,937 shares (including the over-allotment option) of the Company’s common stock at a public
offering price of $16.00 per share (the “Previous Offering”). The Previous Offering closed on April 16, 2018. The
net proceeds to the Company from the Previous Offering was $34,594,865, after deducting underwriting discounts and commissions
and offering expenses paid by the Company.
Corporate
Information
We
were incorporated in 2004 in the state of Delaware. Effective January 11, 2017, we changed our name to PolarityTE, Inc. from “Majesco
Entertainment Company.”
Our
principal executive offices are located at 1960 S 4250 W, Salt Lake City, UT 84104 and our telephone number is (385) 237-2279.
Our web site address is www.PolarityTE.com. Information contained on, or that can be accessed through, our website does not constitute
a part of this prospectus and is not incorporated by reference herein.
THE
OFFERING
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Common
Stock Offered By Us
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2,135,550
shares
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Common
Stock Outstanding After this Offering
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20,979,038
shares
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Option
to Purchase Additional Shares
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We
have granted the underwriter an option for a period of up to 30 days from the date of
this prospectus supplement to purchase up to an aggregate of 320,332 additional shares
of our common stock at the price set forth on the cover page.
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Use
of Proceeds
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We
intend to use the net proceeds from this offering for research and development of our
products and product candidates, efforts toward commercialization and required registration
or approval of our products and product candidates with applicable regulatory authorities
and for general corporate purposes. See “Use of Proceeds.”
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Risk
Factors
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See
“Risk Factors” beginning on page S-5 of this prospectus supplement and the “Risk Factors” sections
of our Annual Report on Form 10-K for the year ended October 30, 2017 and our Quarterly Report on Form 10-Q for the three
months ended January 31, 2018 for a discussion of factors that you should read and consider before investing in our securities.
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Nasdaq
Capital Market Symbol
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COOL
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The
number of shares of common stock to be outstanding after this offering as reflected above is based on the actual number of shares
outstanding at April 30, 2018, which was 18,843,488 and does not include, as of that date:
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4,593,068
shares of common stock issuable upon the exercise of outstanding
options, with a weighted average exercise price of $10.55 per share; and
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1,969,113
shares of common
stock reserved for future issuance under our equity incentive plans.
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Except
as otherwise indicated, all information in this prospectus supplement assumes:
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no
exercise by the underwriter of its option to purchase up to an additional 320,332 shares
of our common stock; and
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no
exercise of the outstanding stock options described above.
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RISK
FACTORS
An
investment in our securities involves a high degree of risk. Before deciding whether to invest in our securities, you should
consider carefully the risks described below and discussed under the section captioned “Risk Factors” beginning
on page 7 of the accompanying prospectus, together with other information in this prospectus supplement, the accompanying
prospectus, and the documents incorporated by reference in this prospectus supplement and the accompanying prospectus. If any
of these risks actually occurs, our business, financial condition or results of operations could be seriously harmed. This
could cause the trading price of our common stock to decline, resulting in a loss of all or part of your
investment.
Risks
Related to This Offering
Our
management will have broad discretion as to the use of the proceeds of this offering.
We
have not designated the amount of net proceeds we will receive from this offering for any particular purpose. Accordingly, our
management will have broad discretion as to the application of these net proceeds. 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 proceeds are being used appropriately. It is possible that, pending their use, we may invest the net proceeds
in a way that does not yield a favorable, or any, return for the Company.
You
will experience immediate and substantial dilution in the net tangible book value per share of the stock you purchase.
The
public offering price of our common stock being offered is substantially higher than the net tangible book value per share of
our common stock outstanding prior to this offering. Therefore, if you purchase our common stock in this offering, you will incur
immediate substantial dilution of $20.88 per share, representing the difference between our pro forma as adjusted net tangible
book value as of January 31, 2018, after giving effect to the Exchange, Conversion, Previous Offering, and this offering, and
the assumed public offering price. If outstanding options or warrants to purchase our common stock are exercised, you will experience
additional dilution. For a further description of the dilution that you will experience immediately after this offering, see “Dilution.”
You
may experience future dilution as a result of future equity offerings or other equity issuances.
To
raise additional capital, we may in the future offer additional shares of our common stock, preferred stock or other securities
convertible into or exchangeable for our common stock. We cannot assure you that we will 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 investors in this offering.
The price per share at which we sell additional shares of our common stock or other securities convertible into or exchangeable
for our common stock in future transactions may be higher or lower than the price per share in this offering.
Our
stock price is likely to be volatile and the market price of our common stock after this offering may drop below the price you
pay.
You
should consider an investment in our common stock as risky and invest only if you can withstand a significant loss and wide fluctuations
in the market value of your investment. You may be unable to sell your shares of common stock at or above the public offering
price due to fluctuations in the market price of our common stock arising from changes in our operating performance or prospects.
In addition, the stock market has recently experienced significant volatility, particularly with respect to life sciences company
stocks. The volatility of life sciences company stocks often does not relate to the operating performance of the companies represented
by the stock. Some of the factors that may cause the market price of our common stock to fluctuate or decrease below the price
paid in this offering include:
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our ability to develop and commercialize our lead product candidate, SkinTE;
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results and timing of our clinical trials;
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failure or discontinuation of any of our development programs;
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issues in manufacturing our product candidates or future approved products;
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issues in designing or constructing our commercial manufacturing facilities;
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regulatory developments or enforcement in the United States and foreign countries with respect to our product candidates or our
competitors’ products;
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competition from existing products or new products that may emerge;
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developments or disputes concerning patents or other proprietary rights;
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introduction of technological innovations or new commercial products by us or our competitors;
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announcements by us, our collaborators or our competitors of significant acquisitions, strategic partnerships, joint ventures,
collaborations or capital commitments;
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changes in estimates or recommendations by securities analysts, if any, who cover our common stock;
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fluctuations in the valuation of companies perceived by investors to be comparable to us;
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public concern over our product candidates or any future approved products;
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threatened or actual litigation;
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future or anticipated sales of our common stock;
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share price and volume fluctuations attributable to inconsistent trading volume levels of our shares;
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additions or departures of key personnel;
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changes in the structure of health care payment systems in the United States or overseas;
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failure of any of our product candidates to achieve commercial success;
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economic and other external factors or other disasters or crises;
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period-to-period fluctuations in our financial condition and results of operations;
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general market conditions and market conditions for biopharmaceutical stocks; and
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overall fluctuations in U.S. equity markets.
In
addition, in the past, when the market price of a stock has been volatile, holders of that stock have instituted securities class
action litigation against the company that issued the stock. If any of our stockholders brought a lawsuit against us, we could
incur substantial costs defending the lawsuit and divert the time and attention of our management, which could seriously harm
our business.
Because
we do not expect to declare cash dividends on our common stock in the foreseeable future, stockholders must rely on appreciation
of the value of our common stock for any return on their investment.
While
we have in the past declared and paid cash dividends on our capital stock, we currently anticipate that we will retain future
earnings for the development, operation and expansion of our business and do not expect to declare or pay any additional cash
dividends in the foreseeable future. As a result, only appreciation of the price of our common stock, if any, will provide a return
to investors in this offering.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus supplement, the accompanying prospectus and the documents incorporated by reference herein and therein include “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”),
and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than
statements of historical fact are “forward-looking statements” for purposes of this prospectus, the accompanying prospectus
and the documents incorporated by reference herein and therein. In some cases, you can identify forward-looking statements by
terminology such as “may,” “could,” “will,” “would,” “should,” “expect,”
“plan,” “anticipate,” “believe,” “estimate,” “intend,” “predict,”
“seek,” “contemplate,” “project,” “continue,” “potential,” “ongoing,”
“goal,” or the negative of these terms or other comparable terminology. These forward-looking statements include,
but are not limited to, statements about:
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our ability to develop and commercialize our lead product candidate, SkinTE;
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how long we expect to maintain liquidity to fund our planned level of operations and our ability to obtain additional funds for
our operations, including our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;
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the initiation, timing, progress and results of our research and development programs, preclinical studies, any clinical trials,
or other regulatory submissions, including registration of our facilities and those of our contractors and/or listing of our product
candidates with the United States Food and Drug Administration pursuant to the regulatory pathway for human cells, tissues, and
cellular and tissue-based products (HCT/Ps) regulated solely under Section 361 of the Public Health Service Act (361 HCT/Ps),
which permits qualifying products to be marketed without first obtaining FDA marketing authorization or approval;
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our ability to identify and develop additional product candidates, including but not limited to OsteoTE™;
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our or a potential collaborator’s need or ability to obtain and maintain regulatory registration, listing or approval of
any of our product candidates;
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the rate and degree of market acceptance of any product candidates;
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the commercialization of any product candidates;
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our ability to establish and maintain collaborations and retain commercial rights for our product candidates in the collaborations;
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the implementation of our business model and strategic plans for our business, technologies and product candidates;
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our estimates of our expenses, ongoing losses, future revenue and capital requirements;
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our ability to obtain and maintain intellectual property protection for our technologies and product candidates and our ability
to operate our business without infringing the intellectual property rights of others;
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our reliance on third parties to conduct any preclinical studies or clinical trials;
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our reliance on third-party suppliers and manufacturers to supply the materials and components for, and manufacture, our research
and development, preclinical trial, and commercialization supplies;
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our ability to attract and retain qualified key management and technical personnel;
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our financial performance;
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developments relating to our competitors or our industry;
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costs of compliance and our failure to comply with new and existing governmental regulations;
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loss or retirement of key members of management;
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failure to successfully execute our growth strategy, including any delays in our planned future growth;
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our failure to maintain effective internal controls; and
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our expected use of proceeds from this offering.
These
statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to
differ materially from current expectations include, among other things, those set forth in the section titled “Risk Factors”
beginning on page S-5 of this prospectus supplement and in the accompanying prospectus and the documents incorporated by reference
herein and therein. Any forward-looking statement in this prospectus, the accompanying prospectus and the documents incorporated
by reference herein and therein reflects our current view with respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our operations, results of operations, industry and future growth. Given these uncertainties,
you should not place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to
update or revise these forward-looking statements for any reason, even if new information becomes available in the future.
This
prospectus supplement, the accompanying prospectus and the documents incorporated by reference herein and therein also contain
estimates, projections and other information concerning our industry, our business and the markets for certain products, including
data regarding the estimated size of those markets, their projected growth rates and the incidence of certain medical conditions.
Information that is based on estimates, forecasts, projections or similar methodologies is inherently subject to uncertainties
and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise
expressly stated, we obtained these industry, business, market and other data from reports, research surveys, studies and similar
data prepared by third parties, industry, medical and general publications, government data and similar sources. In some cases,
we do not expressly refer to the sources from which these data are derived.
USE
OF PROCEEDS
We
estimate that the net proceeds from this offering will be approximately $50.4 million, or approximately $58.0 million if the underwriter
exercises in full its option to purchase 320,332 additional shares of common stock, in each case after deducting underwriting
discounts and commissions and estimated offering expenses payable by us.
We
intend to use the net proceeds from this offering for research and development of our products and product candidates, efforts
toward commercialization and required registration or approval of our products and product candidates with applicable regulatory
authorities and for general corporate purposes.
We
have not determined the amounts we plan to spend or the timing of expenditures. As a result, our management will have broad discretion
to allocate the net proceeds from the sale of the common stock that we may offer under this prospectus supplement and the accompanying
prospectus.
Pending
their ultimate use, we intend to invest the net proceeds in a variety of securities, including commercial paper, government and
non-government debt securities and/or money market funds that invest in such securities.
DILUTION
Purchasers
of common stock offered by this prospectus supplement and the accompanying prospectus will suffer immediate and substantial dilution
in the net tangible book value per share of common stock. Our net tangible book value as of January 31, 2018 was approximately
$(0.51) per share of our common stock. Net tangible book value per share represents the amount of total tangible assets less total
liabilities, divided by the number of shares of our common stock outstanding as of January 31, 2018.
After
giving effect to the Exchange, the Conversions, and the April 2018 Offering, our pro forma net tangible book value as of January
31, 2018 would have been approximately $46.5 million, or approximately $2.47 per share of common stock, based on 18,843,488 shares
of common stock outstanding on a pro forma basis.
After
giving effect to (i) the Exchange, the Conversions, and the April 2018 Offering and (ii) the sale by us of 2,135,550 shares of
common stock in this offering at an assumed public offering price of $25.50 per share, after deducting underwriting discounts
and commissions and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of January
31, 2018 would have been approximately $96.9 million, or approximately $4.62 per share. This represents an immediate cumulative
increase in net tangible book value of approximately $5.13 per share to existing stockholders and an immediate dilution
of approximately $20.88 per share to new investors purchasing shares of our common stock in this offering. The following table
illustrates this per share dilution:
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Assumed
public offering price per share of common stock
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$
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25.50
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Historical
net tangible book value per share as of January 31, 2018
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$
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(0.51
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Increase
in net tangible book value per share attributable to the Exchange, the Conversions, and the April 2018 Offering
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2.98
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Pro
forma net tangible book value per share
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$
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2.47
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Increase
in net tangible book value per share attributable to this offering
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2.15
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Pro
forma as adjusted net tangible book value per share
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$
|
|
|
|
|
4.62
|
|
|
Pro
forma as adjusted dilution per share to new investors participating in this offering
|
|
|
|
|
|
$
|
20.88
|
|
If
the underwriter exercises in full its option to purchase 320,332 additional shares of common stock at the price set forth on the
cover page, after deducting estimated offering expenses payable by us, the pro forma as adjusted net tangible book value of our
common stock after this offering and after giving effect to the Exchange, the Conversions, and the 2018 April Offering would be
$4.91 per share, representing an immediate increase in net tangible book value of approximately $2.43 per share to existing
stockholders and an immediate dilution of $20.59 per share to the investors in this offering.
The
information above does not take into account further dilution to new investors that could occur upon the exercise of outstanding
options having a per share exercise price less than the assumed public offering price per share in this offering. In addition,
we may choose to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient
funds for our current or future operating plans. To the extent that additional capital is raised through the sale of equity or
convertible debt securities, the issuance of these securities could result in further dilution to our stockholders.
The
information above is based on 7,094,544 shares of common stock outstanding as of January 31, 2018, and 18,843,488 shares outstanding
as of April 30, 2018, and excludes:
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|
●
|
4,593,068
shares of common stock issuable upon the exercise of outstanding options, with a weighted
average exercise price of $10.55 per share; and
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|
|
|
|
|
|
●
|
1,969,113
shares of common
stock reserved for future issuance under our equity incentive plans.
|
PRICE
RANGE OF OUR COMMON STOCK
Our
common stock is listed on the Nasdaq Capital Market under the symbol “COOL.” The market for our common stock has often
been sporadic, volatile and limited.
The
following table shows the high and low sales price per share of our common stock as reported by Nasdaq for the periods indicated.
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|
|
High
|
|
|
Low
|
|
|
Fiscal
Year 2016
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
$
|
13.68
|
|
|
$
|
3.66
|
|
|
Second
Quarter
|
|
$
|
5.94
|
|
|
$
|
4.20
|
|
|
Third
Quarter
|
|
$
|
6.30
|
|
|
$
|
3.66
|
|
|
Fourth
Quarter
|
|
$
|
4.50
|
|
|
$
|
3.03
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year 2017
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
$
|
6.22
|
|
|
$
|
2.61
|
|
|
Second
Quarter
|
|
$
|
18.90
|
|
|
$
|
3.80
|
|
|
Third
Quarter
|
|
$
|
30.09
|
|
|
$
|
10.33
|
|
|
Fourth
Quarter
|
|
$
|
32.63
|
|
|
$
|
17.61
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Year 2018
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
$
|
31.49
|
|
|
$
|
19.30
|
|
|
Second
Quarter
|
|
$
|
22.91
|
|
|
$
|
15.21
|
|
|
Third
Quarter (through June 4, 2018)
|
|
$
|
30.00
|
|
|
$
|
16.59
|
|
Holders
of Common Stock. On June 1, 2018, we had 110 registered holders of record of our common stock. On June 4, 2018, the closing sales
price of our common stock as reported on Nasdaq was 27.82 per share.
DIVIDEND
POLICY
Prior
to October 31, 2015, we had never declared or paid any dividends on our Common Stock.
We
declared a special cash dividend of $10,000,000 to be paid to holders of record on January 14, 2016 of our outstanding shares
of: (i) Common Stock (ii) Series A Convertible Preferred Stock; (iii) Series B Convertible Preferred Stock; (iv) Series C Convertible
Preferred Stock and (v) Series D Convertible Preferred Stock. The holders of record of our outstanding preferred stock participated
in receiving their pro rata portion of the dividend on an “as converted” basis. The dividend was paid January 15,
2016.
We
currently anticipate that we will retain future earnings for the development, operation and expansion of our business and do not
expect to declare or pay any cash dividends in the foreseeable future.
UNDERWRITING
Subject
to the terms and conditions set forth in the underwriting agreement, dated June 5, 2018, between us and between us and Cantor
Fitzgerald & Co., as the sole book-running manager of this offering, we have agreed to sell to the underwriter, and the underwriter
has agreed to purchase from us, 2,135,550 shares of common stock.
The
underwriting agreement provides that the obligations of the underwriter is subject to certain conditions precedent such as the
receipt by the underwriter of officers’ certificates and legal opinions and approval of certain legal matters by its counsel.
The underwriting agreement provides that the underwriter will purchase all of the shares of common stock if any of them are purchased.
We have agreed to indemnify the underwriter and certain of its controlling persons against certain liabilities, including liabilities
under the Securities Act, and to contribute to payments that the underwriter may be required to make in respect of those liabilities.
The
underwriter is offering the shares of common stock, subject to prior sale, when, as and if issued to and accepted by them, subject
to approval of legal matters by their counsel and other conditions specified in the underwriting agreement. The underwriter reserves
the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.
Option
to Purchase Additional Shares
We
have granted to the underwriter an option, exercisable 30 days from the date of this prospectus supplement, to purchase, from
time to time, in whole or in part, up to an aggregate of 320,332 shares from us, initially at the price set forth on the cover
page of this prospectus supplement. If the underwriter exercises this option, the underwriter will be obligated, subject to certain
conditions, to purchase a number of additional shares approximately proportionate to the underwriter’s initial purchase
commitment as indicated in the table above.
Commission
and Expenses
The
underwriter is purchasing the shares of common stock from us at $23.65 per share (representing approximately $ 50.5 million aggregate
proceeds to us, before offering expenses). The underwriter may offer the shares of common stock from time to time to purchasers
directly or through agents, or through brokers in brokerage transactions on The NASDAQ Capital Market, or to dealers in negotiated
transactions or in a combination of such methods of sale, or otherwise, at a fixed price or prices, which may be changed, or at
market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. The
difference between the price, at which the underwriter purchases shares from us and the price at which the underwriter resells
such shares may be deemed underwriting compensation. If the underwriter effects such transactions by selling shares of common
stock to or through dealers, such dealers may receive compensation in the form of discounts, concessions or commissions from the
underwriter and/or purchasers of shares of common stock for whom they may act as agents or to whom they may sell as principal.
We
estimate total offering expenses payable by us, excluding underwriting discounts and commissions, will be approximately $85,000.
We have agreed to reimburse the underwriter up to $15,000 for its FINRA counsel fees and other expenses related to the offering.
The foregoing payment is included in the total offering expenses. In accordance with FINRA Rule 5110, these payments to the underwriter
are deemed underwriting compensation for this offering.
Listing
Our
common stock is listed on The Nasdaq Capital Market under the trading symbol “COOL.”
No
Sales of Similar Securities
We,
our officers and our directors have agreed, subject to certain specified exceptions, not to directly or indirectly, for a period
of 90 days (through October 9, 2018, in the case of Dr. Denver Lough, our Chief Executive Officer) after the date of the underwriting
agreement:
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sell,
offer to sell, contract to sell or lend, effect any short sale or establish or increase a Put Equivalent Position (as defined
in Rule 16a-1(h) under the Exchange Act) or liquidate or decrease any Call Equivalent Position (as defined in Rule 16a-1(b)
under the Exchange Act), pledge, hypothecate or grant any security interest in, or in any other way transfer or dispose of,
any common stock or any securities convertible into or exchangeable or exercisable for common stock,
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●
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make
any demand for, or exercise any right with respect to the registration of securities, or the filing of any registration statement,
prospectus or prospectus supplement (or an amendment or supplement thereto) in connection therewith, under the Securities
Act,
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●
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enter
into any swap, hedge or other agreement or transaction that transfers, in whole or in part, the economic consequence of ownership
of common stock, or securities exchangeable or exercisable for or convertible into shares of common stock, or
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●
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publicly
announce an intention to do any of the foregoing.
|
In
addition, we and each such person agrees that, without the prior written consent of the Representative, we or such other person
will not, during the restricted period, make any demand for, or exercise any right with respect to, the registration of any shares
of common stock or any security convertible into or exercisable or exchangeable for common stock.
The
restrictions in the immediately preceding paragraph do not apply in certain circumstances, including:
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●
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as
a bona fide gift or gifts; or
|
|
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|
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●
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to
any trust for the direct or indirect benefit of such person or the immediate family of such person (meaning any relationship
by blood, marriage or adoption, not more remote than first cousin); or
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●
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pursuant
to a qualified domestic order or in connection with a divorce settlement; or
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●
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by
will or intestate succession to the legal representative, heir, beneficiary or immediate family of such person upon the death
of such person.
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The
Representative may, in its sole discretion and at any time or from time to time before the termination of the 90-day (or through
October 9, 2018, in the case of Dr. Denver Lough, our Chief Executive Officer) period release all or any portion of the securities
subject to lock-up agreements.
Market
Making, Stabilization and Other Transactions
The
underwriter may make a market in the common stock as permitted by applicable laws and regulations. However, the underwriter is
not obligated to do so, and the underwriter may discontinue any market-making activities at any time without notice in their sole
discretion. Accordingly, no assurance can be given as to the liquidity of the trading market for the common stock, that you will
be able to sell any of the common stock held by you at a particular time or that the prices that you receive when you sell will
be favorable.
The
underwriter has advised us that it, pursuant to Regulation M under the Securities Exchange Act of 1934, as amended, may engage
in short sale transactions, stabilizing transactions, syndicate covering transactions or the imposition of penalty bids in connection
with this offering. These activities may have the effect of stabilizing or maintaining the market price of the common stock at
a level above that which might otherwise prevail in the open market. Establishing short sales positions may involve either “covered”
short sales or “naked” short sales.
“Covered”
short sales are sales made in an amount not greater than the underwriter’s option to purchase additional shares of our common
stock in this offering. The underwriter may close out any covered short position by either exercising their option to purchase
additional shares of our common stock or purchasing shares of our common stock in the open market. In determining the source of
shares to close out the covered short position, the underwriter will consider, among other things, the price of shares available
for purchase in the open market as compared to the price at which they may purchase shares through the option to purchase additional
shares.
“Naked”
short sales are sales in excess of the option to purchase additional shares of our common stock. The underwriter must close out
any naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriter
is concerned that there may be downward pressure on the price of the shares of our common stock in the open market after pricing
that could adversely affect investors who purchase in this offering.
A
stabilizing bid is a bid for the purchase of shares of common stock on behalf of the underwriter for the purpose of fixing or
maintaining the price of the common stock. A syndicate covering transaction is the bid for or the purchase of shares of common
stock on behalf of the underwriter to reduce a short position incurred by the underwriter in connection with the offering. Similar
to other purchase transactions, the underwriter’s purchases to cover the syndicate short sales may have the effect of raising
or maintaining the market price of our common stock or preventing or retarding a decline in the market price of our common stock.
As a result, the price of our common stock may be higher than the price that might otherwise exist in the open market. A penalty
bid is an arrangement permitting the underwriter to reclaim the selling concession otherwise accruing to a syndicate member in
connection with the offering if the common stock originally sold by such syndicate member are purchased in a syndicate covering
transaction and therefore have not been effectively placed by such syndicate member.
Neither
we nor the underwriter make any representation or prediction as to the direction or magnitude of any effect that the transactions
described above may have on the price of our common stock. The underwriter is not obligated to engage in these activities and,
if commenced, may end any of these activities at any time.
Passive
Market Making
The
underwriter may also engage in passive market making transactions in our common stock on the Nasdaq in accordance with Rule 103
of Regulation M during a period before the commencement of offers or sales of shares of our common stock in this offering and
extending through the completion of distribution. A passive market maker must display its bid at a price not in excess of the
highest independent bid of that security. However, if all independent bids are lowered below the passive market maker’s
bid, that bid must then be lowered when specified purchase limits are exceeded. Passive market making may cause the price of our
common stock to be higher than the price that otherwise would exist in the open market in the absence of those transactions. The
underwriter is not required to engage in passive market making and, if commenced, may end passive market making activities at
any time.
Electronic
Distribution
A
prospectus in electronic format may be made available by e-mail or on the web sites or through online services maintained by one
or more of the underwriter, selling group members (if any) or their affiliates. The underwriter may agree with us to allocate
a specific number of shares of common stock for sale to online brokerage account holders. Any such allocation for online distributions
will be made by the underwriter on the same basis as other allocations. Other than the prospectus in electronic format, the information
on the underwriter’s web site and any information contained in any other web site maintained by the underwriter is not part
of this prospectus supplement, has not been approved and/or endorsed by us or the underwriter and should not be relied upon by
investors.
Other
Activities and Relationships
The
underwriter and certain of its affiliates are full service financial institutions engaged in a wide range of activities for their
own accounts and the accounts of customers, which may include, among other things, corporate finance, mergers and acquisitions,
merchant banking, equity and fixed income sales, trading and research, derivatives, foreign exchange, futures, asset management,
custody, clearance and securities lending. The underwriter and certain of its affiliates have, from time to time, performed, and
may in the future perform, various investment banking and financial advisory services for us and our affiliates, for which they
received or will receive customary fees and expenses.
In
addition, in the ordinary course of its business, the underwriter and its affiliates may, directly or indirectly, hold long or
short positions, trade and otherwise conduct such activities in or with respect to debt or equity securities and/or bank debt
of, and/or derivative products. Such investment and securities activities may involve our securities and instruments. The underwriter
and its affiliates may also make investment recommendations or publish or express independent research views in respect of such
securities or instruments and may at any time hold, or recommend to clients that they acquire, long or short positions in such
securities and instruments.
Stamp
Taxes
If
you purchase shares of common stock offered in this prospectus supplement, you may be required to pay stamp taxes and other charges
under the laws and practices of the country of purchase, in addition to the offering price listed on the cover page of this prospectus
supplement.
Notice
to Investors
Canada
This
prospectus supplement constitutes an “exempt offering document” as defined in and for the purposes of applicable Canadian
securities laws. No prospectus has been filed with any securities commission or similar regulatory authority in Canada in connection
with the offer and sale of the common stock. No securities commission or similar regulatory authority in Canada has reviewed or
in any way passed upon this prospectus supplement or on the merits of the common stock and any representation to the contrary
is an offence.
Canadian
investors are advised that this prospectus supplement has been prepared in reliance on section 3A.3 of National Instrument 33-105
Underwriting Conflicts
(“NI 33-105”). Pursuant to section 3A.3 of NI 33-105, this prospectus supplement is
exempt from the requirement that the Company and the underwriter provide investors with certain conflicts of interest disclosure
pertaining to “connected issuer” and/or “related issuer” relationships that may exist between the Company
and the underwriter as would otherwise be required pursuant to subsection 2.1(1) of NI 33-105.
Resale
Restrictions
The
offer and sale of the common stock in Canada is being made on a private placement basis only and is exempt from the requirement
that the Company prepares and files a prospectus under applicable Canadian securities laws. Any resale of the common stock acquired
by a Canadian investor in this offering must be made in accordance with applicable Canadian securities laws, which may vary depending
on the relevant jurisdiction, and which may require resales to be made in accordance with Canadian prospectus requirements, pursuant
to a statutory exemption from the prospectus requirements, in a transaction exempt from the prospectus requirements or otherwise
under a discretionary exemption from the prospectus requirements granted by the applicable local Canadian securities regulatory
authority. These resale restrictions may under certain circumstances apply to resales of the common stock outside of Canada.
Representations
of Purchasers
Each
Canadian investor who purchases the common stock will be deemed to have represented to the Company and the underwriter that the
investor (i) is purchasing the common stock as principal, or is deemed to be purchasing as principal in accordance with applicable
Canadian securities laws, for investment only and not with a view to resale or redistribution; (ii) is an “accredited investor”
as such term is defined in section 1.1 of National Instrument 45-106
Prospectus Exemptions
(“NI 45-106”) or,
in Ontario, as such term is defined in section 73.3(1) of the
Securities Act
(Ontario); and (iii) is a “permitted
client” as such term is defined in section 1.1 of National Instrument 31-103
Registration Requirements, Exemptions and
Ongoing Registrant Obligations
.
Taxation
and Eligibility for Investment
Any
discussion of taxation and related matters contained in this prospectus supplement does not purport to be a comprehensive description
of all of the tax considerations that may be relevant to a Canadian investor when deciding to purchase the common stock and, in
particular, does not address any Canadian tax considerations. No representation or warranty is hereby made as to the tax consequences
to a resident, or deemed resident, of Canada of an investment in the common stock or with respect to the eligibility of the common
stock for investment by such investor under relevant Canadian federal and provincial legislation and regulations.
Rights
of Action for Damages or Rescission
Securities
legislation in certain of the Canadian jurisdictions provides certain purchasers of securities pursuant to an offering memorandum
(such as this prospectus supplement), including where the distribution involves an “eligible foreign security” as
such term is defined in Ontario Securities Commission Rule 45-501
Ontario Prospectus and Registration Exemptions
and in
Multilateral Instrument 45-107
Listing Representation and Statutory Rights of Action Disclosure Exemptions
, as applicable,
with a remedy for damages or rescission, or both, in addition to any other rights they may have at law, where the offering memorandum,
or other offering document that constitutes an offering memorandum, and any amendment thereto, contains a “misrepresentation”
as defined under applicable Canadian securities laws. These remedies, or notice with respect to these remedies, must be exercised
or delivered, as the case may be, by the purchaser within the time limits prescribed under, and are subject to limitations and
defences under, applicable Canadian securities legislation. In addition, these remedies are in addition to and without derogation
from any other right or remedy available at law to the investor.
Language
of Documents
Upon
receipt of this document, each Canadian investor hereby confirms that it has expressly requested that all documents evidencing
or relating in any way to the sale of the securities described herein (including for greater certainty any purchase confirmation
or any notice) be drawn up in the English language only.
Par la réception de ce document, chaque investisseur Canadien
confirme par les présentes qu’il a expressément exigé que tous les documents faisant foi ou se rapportant
de quelque manière que ce soit à la vente des valeurs mobilières décrites aux présentes (incluant,
pour plus de certitude, toute confirmation d’achat ou tout avis) soient rédigés en anglais seulement.
Australia
This
prospectus is not a disclosure document for the purposes of Australia’s Corporations Act 2001 (Cth) of Australia, or Corporations
Act, has not been lodged with the Australian Securities & Investments Commission and is only directed to the categories of
exempt persons set out below. Accordingly, if you receive this prospectus in Australia:
You
confirm and warrant that you are either:
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a
“sophisticated investor” under section 708(8)(a) or (b) of the Corporations Act;
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●
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a
“sophisticated investor” under section 708(8)(c) or (d) of the Corporations Act and that you have provided an
accountant’s certificate to the company which complies with the requirements of section 708(8)(c)(i) or (ii) of the
Corporations Act and related regulations before the offer has been made; or
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●
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a
“professional investor” within the meaning of section 708(11)(a) or (b) of the Corporations Act.
|
To
the extent that you are unable to confirm or warrant that you are an exempt sophisticated investor or professional investor under
the Corporations Act any offer made to you under this prospectus is void and incapable of acceptance.
You
warrant and agree that you will not offer any of the shares issued to you pursuant to this prospectus for resale in Australia
within 12 months of those securities being issued unless any such resale offer is exempt from the requirement to issue a disclosure
document under section 708 of the Corporations Act.
European
Economic Area
In
relation to each member state of the European Economic Area which has implemented the Prospectus Directive, each referred to herein
as a Relevant Member State, with effect from and including the date on which the Prospectus Directive is implemented in that Relevant
Member State, referred to herein as the Relevant Implementation Date, no offer of any securities which are the subject of the
offering contemplated by this prospectus has been or will be made to the public in that Relevant Member State other than any offer
where a prospectus has been or will be published in relation to such securities that has been approved by the competent authority
in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the relevant competent
authority in that Relevant Member State in accordance with the Prospectus Directive, except that with effect from and including
the Relevant Implementation Date, an offer of such securities may be made to the public in that Relevant Member State:
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to
any legal entity which is a “qualified investor” as defined in the Prospectus Directive;
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●
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to
fewer than 100 or, if the Relevant Member State has implemented the relevant provision
of the 2010 PD Amending Directive, 150, natural or legal persons (other than qualified
investors as defined in the Prospectus Directive), as permitted under the Prospectus
Directive, subject to obtaining the prior consent of the representatives of the underwriter
for any such offer; or
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●
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in
any other circumstances falling within Article 3(2) of the Prospectus Directive,
|
provided
that no such offer of securities shall require the Company or any of the underwriter to publish a prospectus pursuant to Article
3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the Prospectus Directive.
For
the purposes of this provision, the expression an “offer to the public” in relation to any securities in any Relevant
Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the
securities to be offered so as to enable an investor to decide to purchase or subscribe the securities, as the same may be varied
in that Relevant Member State by any measure implementing the Prospectus Directive in that Relevant Member State and the expression
“Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive,
to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member
State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU.
Hong
Kong
No
securities have been offered or sold, and no securities may be offered or sold, in Hong Kong, by means of any document, other
than to persons whose ordinary business is to buy or sell shares or debentures, whether as principal or agent; or to “professional
investors” as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong and any rules made under that Ordinance;
or in other circumstances which do not result in the document being a “prospectus” as defined in the Companies Ordinance
(Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of the Companies Ordinance (Cap.32)
of Hong Kong. No document, invitation or advertisement relating to the securities has been issued or may be issued or may be in
the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at,
or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted under the securities
laws of Hong Kong) other than with respect to securities which are or are intended to be disposed of only to persons outside Hong
Kong or only to “professional investors” as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong
and any rules made under that Ordinance.
This
prospectus has not been registered with the Registrar of Companies in Hong Kong. Accordingly, this prospectus may not be issued,
circulated or distributed in Hong Kong, and the securities may not be offered for subscription to members of the public in Hong
Kong. Each person acquiring the securities will be required, and is deemed by the acquisition of the securities, to confirm that
he is aware of the restriction on offers of the securities described in this prospectus and the relevant offering documents and
that he is not acquiring, and has not been offered any securities in circumstances that contravene any such restrictions.
Japan
The
offering has not been and will not be registered under the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948
of Japan, as amended), or FIEL, and the Initial Purchaser will not offer or sell any securities, directly or indirectly, in Japan
or to, or for the benefit of, any resident of Japan (which term as used herein means, unless otherwise provided herein, any person
resident in Japan, including any corporation or other entity organized under the laws of Japan), or to others for re-offering
or resale, directly or indirectly, in Japan or to a resident of Japan, except pursuant to an exemption from the registration requirements
of, and otherwise in compliance with, the FIEL and any other applicable laws, regulations and ministerial guidelines of Japan.
Singapore
This
prospectus has not been and will not be lodged or registered with the Monetary Authority of Singapore. Accordingly, this prospectus
and any other document or material in connection with the offer or sale, or the invitation for subscription or purchase of the
securities may not be issued, circulated or distributed, nor may the securities be offered or sold, or be made the subject of
an invitation for subscription or purchase, whether directly or indirectly, to the public or any member of the public in Singapore
other than (i) to an institutional investor under Section 274 of the Securities and Futures Act, Chapter 289 of Singapore, or
the SFA, (ii) to a relevant person as defined under Section 275(2), or any person pursuant to Section 275(1A) of the SFA, and
in accordance with the conditions, specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with
the conditions of any other applicable provision of the SFA.
Where
the securities are subscribed or purchased under Section 275 of the SFA by a relevant person which is:
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a
corporation (which is not an accredited investor as defined under Section 4A of the SFA) the sole business of which is to
hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited
investor; or
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a
trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary is
an accredited investor,
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shares,
debentures and units of shares and debentures of that corporation or the beneficiaries’ rights and interest in that trust
shall not be transferable for six months after that corporation or that trust has acquired the Offer Shares under Section 275
of the SFA except:
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to
an institutional investor under Section 274 of the SFA or to a relevant person defined in Section 275(2) of the SFA, or to
any person pursuant to an offer that is made on terms that such shares, debentures and units of shares and debentures of that
corporation or such rights and interest in that trust are acquired at a consideration of not less than $200,000 (or its equivalent
in a foreign currency) for each transaction, whether such amount is to be paid for in cash or by exchange of securities or
other assets, and further for corporations, in accordance with the conditions, specified in Section 275 of the SFA;
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where
no consideration is given for the transfer; or
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where
the transfer is by operation of law.
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Switzerland
The
securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange, or SIX, or on any other
stock exchange or regulated trading facility in Switzerland. This prospectus has been prepared without regard to the disclosure
standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards
for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated
trading facility in Switzerland. Neither this prospectus nor any other offering or marketing material relating to the securities
or the offering may be publicly distributed or otherwise made publicly available in Switzerland.
Neither
this prospectus nor any other offering or marketing material relating to the offering, the Company or the securities have been
or will be filed with or approved by any Swiss regulatory authority. In particular, this prospectus will not be filed with, and
the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority FINMA, or FINMA, and the offer
of securities has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes, or CISA. The
investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers
of securities.
Israel
This
document does not constitute a prospectus under the Israeli Securities Law, 5728-1968, or the Securities Law, and has not been
filed with or approved by the Israel Securities Authority. In the State of Israel, this document is being distributed only to,
and is directed only at, and any offer of the shares is directed only at, investors listed in the first addendum, or the Addendum,
to the Israeli Securities Law, consisting primarily of joint investment in trust funds, provident funds, insurance companies,
banks, portfolio managers, investment advisors, members of the Tel Aviv Stock Exchange, underwriters, venture capital funds, entities
with equity in excess of NIS 50 million and “qualified individuals”, each as defined in the Addendum (as it may be
amended from time to time), collectively referred to as qualified investors (in each case purchasing for their own account or,
where permitted under the Addendum, for the accounts of their clients who are investors listed in the Addendum). Qualified investors
will be required to submit written confirmation that they fall within the scope of the Addendum, are aware of the meaning of same
and agree to it.
United
Kingdom
This
prospectus is only being distributed to, and is only directed at, persons in the United Kingdom that are qualified investors
(as defined in the Prospectus Directive) that are also (i) investment professionals falling within Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended, referred to herein as the Order, and/or
(ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order and other persons to whom it may lawfully be
communicated. Each such person is referred to herein as a Relevant Person.
This
prospectus and its contents are confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed
by recipients to any other persons in the United Kingdom. Any person in the United Kingdom that is not a Relevant Person should
not act or rely on this document or any of its contents.
LEGAL
MATTERS
Parsons
Behle & Latimer, Salt Lake City, Utah, will pass on the validity of the shares of common stock offered by this prospectus
supplement and the accompanying prospectus. Covington & Burling LLP, New York, New York, is counsel for the underwriter in
connection with this offering.
EXPERTS
The
consolidated balance sheets of PolarityTE, Inc. and Subsidiaries as of October 31, 2017 and 2016, and the related consolidated
statements of operations, stockholders’ equity, and cash flows for each of the years then ended, have been audited by EisnerAmper
LLP, independent registered public accounting firm, as stated in their report which is incorporated herein by reference, which
report includes an explanatory paragraph about the existence of substantial doubt concerning our ability to continue as a going
concern. Such financial statements have been incorporated herein by reference in reliance on the report of such firm given upon
their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
This
prospectus supplement constitutes a part of a registration statement on Form S-3 filed under the Securities Act. As permitted
by the SEC’s rules, this prospectus supplement and the prospectus, which form a part of the registration statement, do not
contain all the information that is included in the registration statement. You will find additional information about us in the
registration statement. Any statements made in this prospectus supplement or the prospectus 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 any materials
we file with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information
on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Our SEC filings are also available to the
public over the Internet at the SEC’s website at http://www.sec.gov.
INCORPORATION
OF DOCUMENTS BY REFERENCE
We
have filed a registration statement on Form S-3 with the SEC under the Securities Act. This prospectus supplement is part of the
registration statement but the registration statement includes and incorporates by reference additional information and exhibits.
The SEC permits us to “incorporate by reference” the information contained in documents we file with the SEC, which
means that we can disclose important information to you by referring you to those documents rather than by including them in this
prospectus supplement. Information that is incorporated by reference is considered to be part of this prospectus supplement and
you should read it with the same care that you read this prospectus supplement. Information that we file later with the SEC will
automatically update and supersede the information that is either contained, or incorporated by reference, in this prospectus
supplement, and will be considered to be a part of this prospectus supplement from the date those documents are filed. We have
filed with the SEC, and incorporate by reference in this prospectus supplement:
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our
Annual Report on Form 10-K for the year ended October 31, 2017 filed with the SEC on January 30, 2018, as amended by Amendment
No. 1 on Form 10-K/A filed with the SEC on February 28, 2018;
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our
Quarterly Report on Form 10-Q for the quarter ended January 31, 2018 filed with the SEC on March 19, 2018;
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our
Current Reports on Form 8-K filed with the SEC on November 3, 2017, November 16, 2017, November 27, 2017, December 29, 2017,
February 9, 2018, March 7, 2018 (as amended on March 8, 2018), March 8, 2018, April 11, 2018, April 13, 2018, April 24, 2018,
May 1, 2018, and May 8, 2018;
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the
description of our common stock contained in our Registration Statement on Form 8-A filed with the SEC on January 21, 2005
(File No. 000-51128), including any amendment or report filed for the purpose of updating such description; and
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all
reports and other documents subsequently filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act after
the date of this prospectus and prior to the termination of this offering.
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Notwithstanding
the foregoing, information furnished under Items 2.02 and 7.01 of any Current Report on Form 8-K, including the related exhibits,
is not incorporated by reference in this prospectus.
The
information about us contained in this prospectus should be read together with the information in the documents incorporated by
reference. You may request a copy of any or all of these filings, at no cost, by writing or telephoning us at: 1960 S 4250 W,
Salt Lake City, UT 84104, phone number 385-237-2279.
PROSPECTUS
$100,000,000
Common
Stock
Preferred
Stock
Warrants
Units
We
may from time to time, in one or more offerings at prices and on terms that we will determine at the time of each offering, sell
common stock, preferred stock, warrants, or a combination of these securities, or units, for an aggregate initial offering price
of up to $100,000,000. This prospectus describes the general manner in which our securities may be offered using this prospectus.
Each time we offer and sell securities, we will provide you with a prospectus supplement that will contain specific information
about the terms of that offering. Any prospectus supplement may also add, update, or change information contained in this prospectus.
You should carefully read this prospectus and the applicable prospectus supplement as well as the documents incorporated or deemed
to be incorporated by reference in this prospectus before you purchase any of the securities offered hereby.
This
prospectus may not be used to offer and sell securities unless accompanied by a prospectus supplement.
Our
common stock is currently traded on the Nasdaq Capital Market under the symbol “COOL.” On March 23, 2018, the last
reported sales price for our common stock was $16.88 per share. We will apply to list any shares of common stock sold by us under
this prospectus and any prospectus supplement on the Nasdaq Capital Market. The prospectus supplement will contain information,
where applicable, as to any other listing of the securities on the Nasdaq Capital Market or any other securities market or exchange
covered by the prospectus supplement.
The
securities offered by this prospectus involve a high degree of risk. See “Risk Factors” beginning on page 7, in addition
to Risk Factors contained in the applicable prospectus supplement.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
We
may offer the securities directly or through agents or to or through underwriters or dealers. If any agents or underwriters are
involved in the sale of the securities their names, and any applicable purchase price, fee, commission or discount arrangement
between or among them, will be set forth, or will be calculable from the information set forth, in an accompanying prospectus
supplement. We can sell the securities through agents, underwriters or dealers only with delivery of a prospectus supplement describing
the method and terms of the offering of such securities. See “Plan of Distribution.”
This
prospectus is dated March 28, 2018
Table
of Contents
You
should rely only on the information contained or incorporated by reference in this prospectus or any prospectus supplement. We
have not authorized anyone to provide you with information different from that contained or incorporated by reference into this
prospectus. If any person does provide you with information that differs from what is contained or incorporated by reference in
this prospectus, you should not rely on it. No dealer, salesperson or other person is authorized to give any information or to
represent anything not contained in this prospectus. You should assume that the information contained in this prospectus or any
prospectus supplement is accurate only as of the date on the front of the document and that any information contained in any document
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 or any prospectus supplement or any sale of a security. These documents are not an offer to
sell or a solicitation of an offer to buy these securities in any circumstances under which the offer or solicitation is unlawful.
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission, or 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 of more offerings up to a total dollar amount of proceeds of $100,000,000. This prospectus describes the general manner
in which our securities may be offered by this prospectus. Each time we sell securities, we will provide a prospectus supplement
that will contain specific information about the terms of that offering. The prospectus supplement may also add, update or change
information contained in this prospectus or in documents incorporated by reference in this prospectus. The prospectus supplement
that contains specific information about the terms of the securities being offered may also include a discussion of certain U.S.
Federal income tax consequences and any risk factors or other special considerations applicable to those securities. To the extent
that any statement that we make in a prospectus supplement is inconsistent with statements made in this prospectus or in documents
incorporated by reference in this prospectus, you should rely on the information in the prospectus supplement. You should carefully
read both this prospectus and any prospectus supplement together with the additional information described under “Where
You Can Find More Information” before buying any securities in this offering.
Unless
the context otherwise requires, references to “we,” “our,” “us,” “PolarityTE”
or the “Company” in this prospectus mean PolarityTE, Inc., f/k/a Majesco Entertainment Company, a Delaware corporation,
on a consolidated basis with its wholly-owned subsidiaries, as applicable.
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus and the documents and information incorporated by reference in this prospectus include “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical
fact are “forward-looking statements” for purposes of this prospectus and the documents and information incorporated
by reference in this prospectus. In some cases, you can identify forward-looking statements by terminology such as “may,”
“could,” “will,” “would,” “should,” “expect,” “plan,”
“anticipate,” “believe,” “estimate,” “intend,” “predict,” “seek,”
“contemplate,” “project,” “continue,” “potential,” “ongoing,” “goal,”
or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited
to, statements about:
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how long we expect to maintain liquidity to fund our planned level of operations and our ability to obtain additional funds for
our operations;
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the initiation, timing, progress and results of our research and development programs, preclinical studies, any clinical trials,
or other regulatory submissions, including registration of our product candidates with the United States Food and Drug Administration
pursuant to the regulatory pathway for human cells, tissues, and cellular and tissue-based products (HCT/Ps) regulated solely
under Section 361 of the Public Health Service Act (361 HCT/Ps), which permits qualifying products to be marketed without first
obtaining FDA marketing authorization or approval;
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our ability to identify and develop product candidates;
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our or a potential collaborator’s need or ability to obtain and maintain regulatory registration, listing or approval of
any of our product candidates;
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the rate and degree of market acceptance of any product candidates;
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the commercialization of any product candidates;
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our ability to establish and maintain collaborations and retain commercial rights for our product candidates in the collaborations;
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the implementation of our business model and strategic plans for our business, technologies and product candidates;
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our estimates of our expenses, ongoing losses, future revenue and capital requirements;
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our ability to obtain and maintain intellectual property protection for our technologies and product candidates and our ability
to operate our business without infringing the intellectual property rights of others;
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our reliance on third parties to conduct any preclinical studies or clinical trials;
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our reliance on third-party suppliers and manufacturers to supply the materials and components for, and manufacture, our research
and development, preclinical trial, and commercialization supplies;
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our ability to attract and retain qualified key management and technical personnel;
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our financial performance; and
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developments relating to our competitors or our industry.
These
statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to
differ materially from current expectations include, among other things, those set forth in the section titled “Risk Factors”
below and for the reasons described elsewhere in this prospectus and the documents and information incorporated by reference in
this prospectus. Any forward-looking statement in this prospectus and the documents and information incorporated by reference
in this prospectus reflects our current view with respect to future events and is subject to these and other risks, uncertainties
and assumptions relating to our operations, results of operations, industry and future growth. Given these uncertainties, you
should not place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update
or revise these forward-looking statements for any reason, even if new information becomes available in the future.
This
prospectus and the documents and information incorporated by reference in this prospectus also contain estimates, projections
and other information concerning our industry, our business and the markets for certain products, including data regarding the
estimated size of those markets, their projected growth rates and the incidence of certain medical conditions. Information that
is based on estimates, forecasts, projections or similar methodologies is inherently subject to uncertainties and actual events
or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly
stated, we obtained these industry, business, market and other data from reports, research surveys, studies and similar data prepared
by third parties, industry, medical and general publications, government data and similar sources. In some cases, we do not expressly
refer to the sources from which these data are derived.
ABOUT
POLARITYTE, INC.
Overview
PolarityTE™
is a commercial-stage biotechnology and regenerative biomaterials company focused on transforming the lives of patients by discovering,
designing and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering
and material sciences. We believe that our PolarityTE platform technology is a new approach to pragmatic and functional tissue
regeneration that has the potential to address many of the challenges currently facing the regenerative medicine and cell therapy
markets to date. Recognizing the natural complexity of human tissue, our core “TE” platform begins with a small piece
of the patient’s own, or autologous, healthy tissue, rather than artificially manipulated individual cells. From this small
piece of healthy autologous tissue, we create an easily deployable, dynamic and self-propagating product, which is designed to
enhance and stimulate the patient’s own cells to regenerate the target tissues. Rather than manufacturing with synthetic
and foreign materials within artificially engineered environments, we believe our proprietary method promotes and accelerates
the patient’s tissues to undergo a form of effective regenerative healing, and uses the patient’s own body to support
the regenerative process to create the same tissue from which they were derived.
We
are a clinical-stage biotechnology and life sciences company focused on the advancement of self-complexing intelligent regenerative
materials. We believe our core “TE” platform has applications across many different indications, including, but not
limited to, the regrowth of skin, bone, cartilage, fat, muscle, blood vessels and neural elements as well as solid and hollow
organ composite tissue systems. Our first product, SkinTE™, is registered with the United States Food and Drug Administration
(“FDA”) pursuant to the regulatory pathway for human cells, tissues, and cellular and tissue-based products (HCT/Ps)
regulated solely under Section 361 of the Public Health Service Act (“361 HCT/Ps”), which permits qualifying products
to be marketed without first obtaining FDA marketing authorization or approval, and is commercially available for the repair,
reconstruction, replacement and regeneration of skin (i.e., homologous uses) for patients who have suffered from wounds, burns
or injuries that require skin coverage over both small and large areas of their body.
Corporate
Information
We
were incorporated in 2004 in the state of Delaware. Effective January 11, 2017, we changed our name to PolarityTE, Inc. from “Majesco
Entertainment Company.”
Our
principal executive offices are located at 1960 S 4250 W, Salt Lake City, UT 84104 and our telephone number is (385) 237-2279.
Our web site address is www.Polarityte.com. Information contained on, or that can be accessed through, our website does not constitute
a part of this prospectus and is not incorporated by reference herein.
RISK
FACTORS
Investing
in our securities involves a high degree of risk. Before making an investment decision, you should consider carefully the risks,
uncertainties and other factors described in our most recent Annual Report on Form 10-K, as supplemented and updated by subsequent
quarterly reports on Form 10-Q and current reports on Form 8-K that we have filed or will file with the SEC, which are incorporated
by reference into this prospectus.
Our
business, affairs, prospects, assets, financial condition, results of operations and cash flows could be materially and adversely
affected by these risks. For more information about our SEC filings, please see “Where You Can Find More Information.”
USE
OF PROCEEDS
Unless
otherwise indicated in a prospectus supplement, we intend to use the net proceeds from the sale of the securities under this prospectus
for general corporate purposes, including and for general working capital purposes. We may also use a portion of the net proceeds
to acquire or invest in businesses and products that are complementary to our own, although we have no current plans, commitments
or agreements with respect to any acquisitions as of the date of this prospectus.
DESCRIPTION
OF COMMON STOCK
General
We
are authorized to issue 250,000,000 shares of common stock, $0.001 par value per share. As of March 26, 2018, we have 16,457,664
shares of common stock issued and outstanding.
Holders
of our common stock are entitled to one vote per share. Our Restated Certificate of Incorporation does not provide for cumulative
voting. Subject to the rights of the holders of shares of any series of preferred stock then outstanding, holders of our common
stock are entitled to receive ratably such dividends, if any, as may be declared by our Board out of legally available funds.
Subject to the rights of the holders of shares of any series of preferred stock then outstanding, 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. The holders of our common stock have no preemptive, subscription,
redemption or conversion rights.
DESCRIPTION
OF PREFERRED STOCK
We
are authorized to issue up to 25,000,000 shares of preferred stock, par value $0.001 per share, from time to time in one or more
series. As of March 26, 2018, we have no shares of preferred stock issued and outstanding.
Our
Restated Certificate of Incorporation authorizes our board of directors to issue preferred stock from time to time with such designations,
preferences, conversion or other rights, voting powers, restrictions, dividends or limitations as to dividends or other distributions,
qualifications or terms or conditions of redemption as shall be determined by the Board of Directors for each class or series
of stock. Preferred stock is available for possible future financings or acquisitions and for general corporate purposes without
further authorization of stockholders unless such authorization is required by applicable law, the rules of the Nasdaq Capital
Market or other securities exchange or market on which our stock is then listed or admitted to trading.
Our
board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect
the voting power or other rights of the holders of common stock. The issuance of preferred stock, while providing flexibility
in connection with possible acquisitions and other corporate purposes could, under some circumstances, have the effect of delaying,
deferring or preventing a change in control of the Company.
A
prospectus supplement relating to any series of preferred stock being offered will include specific terms relating to the offering.
Such prospectus supplement will include:
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title and stated or par value of the preferred stock;
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number of shares of the preferred stock offered, the liquidation preference per share and the offering price of the preferred
stock;
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dividend rate(s), period(s) and/or payment date(s) or method(s) of calculation thereof applicable to the preferred stock;
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whether
dividends shall be cumulative or non-cumulative and, if cumulative, the date from which dividends on the preferred stock shall
accumulate;
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provisions for a sinking fund, if any, for the preferred stock;
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any
voting rights of the preferred stock;
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the
provisions for redemption, if applicable, of the preferred stock;
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any
listing of the preferred stock on any securities exchange;
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the
terms and conditions, if applicable, upon which the preferred stock will be convertible into our common stock, including the
conversion price or the manner of calculating the conversion price and conversion period;
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if
appropriate, a discussion of Federal income tax consequences applicable to the preferred stock; and
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any
other specific terms, preferences, rights, limitations or restrictions of the preferred stock.
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The
terms, if any, on which the preferred stock may be convertible into or exchangeable for our common stock will also be stated in
the preferred stock prospectus supplement. The terms will include provisions as to whether conversion or exchange is mandatory,
at the option of the holder or at our option, and may include provisions pursuant to which the number of shares of our common
stock to be received by the holders of preferred stock would be subject to adjustment.
DESCRIPTION
OF WARRANTS
We
may issue warrants for the purchase of preferred stock or common stock. Warrants may be issued independently or together with
any preferred stock or common stock, and may be attached to or separate from any offered securities. Each series of warrants will
be issued under a separate warrant agreement to be entered into between a warrant agent specified in the agreement and us. The
warrant agent will act solely as our agent in connection with the warrants of that series and will not assume any obligation or
relationship of agency or trust for or with any holders or beneficial owners of warrants. This summary of some provisions of the
securities warrants is not complete. You should refer to the securities warrant agreement, including the forms of securities warrant
certificate representing the securities warrants, relating to the specific securities warrants being offered for the complete
terms of the securities warrant agreement and the securities warrants. The securities warrant agreement, together with the terms
of the securities warrant certificate and securities warrants, will be filed with the SEC in connection with the offering of the
specific warrants.
The
applicable prospectus supplement will describe the following terms, where applicable, of the warrants in respect of which this
prospectus is being delivered:
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title of the warrants;
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aggregate number of the warrants;
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the
price or prices at which the warrants will be issued;
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the
designation, amount and terms of the offered securities purchasable upon exercise of the warrants;
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if
applicable, the date on and after which the warrants and the offered securities purchasable upon exercise of the warrants
will be separately transferable;
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the
terms of the securities purchasable upon exercise of such warrants and the procedures and conditions relating to the exercise
of such warrants;
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any
provisions for adjustment of the number or amount of securities receivable upon exercise of the warrants or the exercise price
of the warrants;
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the
price or prices at which and currency or currencies in which the offered securities purchasable upon exercise of the warrants
may be purchased;
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the
date on which the right to exercise the warrants shall commence and the date on which the right shall expire;
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the
minimum or maximum amount of the warrants that may be exercised at any one time;
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information
with respect to book-entry procedures, if any;
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if
appropriate, a discussion of Federal income tax consequences; and
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any
other material terms of the warrants, including terms, procedures and limitations relating to the exchange and exercise of
the warrants.
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Warrants
for the purchase of common stock or preferred stock will be offered and exercisable for U.S. dollars only. Warrants will be issued
in registered form only.
Upon
receipt of 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, we will, as soon as practicable, forward the purchased
securities. If less than all of the warrants represented by the warrant certificate are exercised, a new warrant certificate will
be issued for the remaining warrants.
Prior
to the exercise of any securities warrants to purchase preferred stock or common stock, holders of the warrants will not have
any of the rights of holders of the common stock or preferred stock purchasable upon exercise, including in the case of securities
warrants for the purchase of common stock or preferred stock, the right to vote or to receive any payments of dividends on the
preferred stock or common stock purchasable upon exercise.
DESCRIPTION
OF UNITS
As
specified in the applicable prospectus supplement, we may issue units consisting of shares of common stock, shares of preferred
stock or warrants or any combination of such securities.
The
applicable prospectus supplement will specify the following terms of any units in respect of which this prospectus is being delivered:
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the
terms of the units and of any of the common stock, preferred stock and warrants comprising the units, including whether and
under what circumstances the securities comprising the units may be traded separately;
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a
description of the terms of any unit agreement governing the units; and
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a
description of the provisions for the payment, settlement, transfer or exchange of the units.
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PLAN
OF DISTRIBUTION
We
may sell the securities offered through this prospectus (i) to or through underwriters or dealers, (ii) directly to purchasers,
including our affiliates, (iii) through agents, or (iv) through a combination of any these methods. The securities may be distributed
at a fixed price or prices, which may be changed, market prices prevailing at the time of sale, prices related to the prevailing
market prices, or negotiated prices. The prospectus supplement will include the following information:
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the
terms of the offering;
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the
names of any underwriters or agents;
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the
name or names of any managing underwriter or underwriters;
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the
purchase price of the securities;
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any
over-allotment options under which underwriters may purchase additional securities from us;
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the
net proceeds from the sale of the securities
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any
delayed delivery arrangements
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any
underwriting discounts, commissions and other items constituting underwriters’ compensation;
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any
initial public offering price;
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any
discounts or concessions allowed or reallowed or paid to dealers;
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any
commissions paid to agents; and
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any
securities exchange or market on which the securities may be listed.
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Sale
Through Underwriters or Dealers
Only
underwriters named in the prospectus supplement are underwriters of the securities offered by the prospectus supplement.
If
underwriters are used in the sale, the underwriters will acquire the securities for their own account, including through underwriting,
purchase, security lending or repurchase agreements with us. The underwriters may resell the securities from time to time in one
or more transactions, including negotiated transactions. Underwriters may sell the securities in order to facilitate transactions
in any of our other securities (described in this prospectus or otherwise), including other public or private transactions and
short sales. Underwriters may offer securities to the public either through underwriting syndicates represented by one or more
managing underwriters or directly by one or more firms acting as underwriters. Unless otherwise indicated in the prospectus supplement,
the obligations of the underwriters to purchase the securities will be subject to certain conditions, and the underwriters will
be obligated to purchase all the offered securities if they purchase any of them. The underwriters may change from time to time
any initial public offering price and any discounts or concessions allowed or reallowed or paid to dealers.
If
dealers are used in the sale of securities offered through this prospectus, we will sell the securities to them as principals.
They may then resell those securities to the public at varying prices determined by the dealers at the time of resale. The prospectus
supplement will include the names of the dealers and the terms of the transaction.
Direct
Sales and Sales Through Agents
We
may sell the securities offered through this prospectus directly. In this case, no underwriters or agents would be involved. Such
securities may also be sold through agents designated from time to time. The prospectus supplement will name any agent involved
in the offer or sale of the offered securities and will describe any commissions payable to the agent. Unless otherwise indicated
in the prospectus supplement, any agent will agree to use its reasonable best efforts to solicit purchases for the period of its
appointment.
We
may sell the securities directly to institutional investors or others who may be deemed to be underwriters within the meaning
of the Securities Act with respect to any sale of those securities. The terms of any such sales will be described in the prospectus
supplement.
Delayed
Delivery Contracts
If
the prospectus supplement indicates, we may authorize agents, underwriters or dealers to solicit offers from certain types of
institutions to purchase securities at the public offering price under delayed delivery contracts. These contracts would provide
for payment and delivery on a specified date in the future. The contracts would be subject only to those conditions described
in the prospectus supplement. The applicable prospectus supplement will describe the commission payable for solicitation of those
contracts.
Continuous
Offering Program
Without
limiting the generality of the foregoing, we may enter into a continuous offering program equity distribution agreement with a
broker-dealer, under which we may offer and sell shares of our common stock from time to time through a broker-dealer as our sales
agent. If we enter into such a program, sales of the shares of common stock, if any, will be made by means of ordinary brokers’
transactions on the Nasdaq Capital Market at market prices, block transactions and such other transactions as agreed upon by us
and the broker-dealer. Under the terms of such a program, we also may sell shares of common stock to the broker-dealer, as principal
for its own account at a price agreed upon at the time of sale. If we sell shares of common stock to such broker-dealer as principal,
we will enter into a separate terms agreement with such broker-dealer, and we will describe this agreement in a separate prospectus
supplement or pricing supplement.
Market
Making, Stabilization and Other Transactions
Unless
the applicable prospectus supplement states otherwise, other than our common stock all securities we offer under this prospectus
will be a new issue and will have no established trading market. We may elect to list offered securities on an exchange or in
the over-the-counter market. Any underwriters that we use in the sale of offered securities may make a market in such securities,
but may discontinue such market making at any time without notice. Therefore, we cannot assure you that the securities will have
a liquid trading market.
Any
underwriter may also engage in stabilizing transactions, syndicate covering transactions and penalty bids in accordance with Rule
104 under the Securities Exchange Act. Stabilizing transactions involve bids to purchase the underlying security in the open market
for the purpose of pegging, fixing or maintaining the price of the securities. Syndicate covering transactions involve purchases
of the securities in the open market after the distribution has been completed in order to cover syndicate short positions.
Penalty
bids permit the underwriters to reclaim a selling concession from a syndicate member when the securities originally sold by the
syndicate member are purchased in a syndicate covering transaction to cover syndicate short positions. Stabilizing transactions,
syndicate covering transactions and penalty bids may cause the price of the securities to be higher than it would be in the absence
of the transactions. The underwriters may, if they commence these transactions, discontinue them at any time.
General
Information
Agents,
underwriters, and dealers may be entitled, under agreements entered into with us, to indemnification by us against certain liabilities,
including liabilities under the Securities Act. Our agents, underwriters, and dealers, or their affiliates, may be customers of,
engage in transactions with or perform services for us, in the ordinary course of business.
LEGAL
MATTERS
The
validity of the issuance of the securities offered by this prospectus will be passed upon for us by Sichenzia Ross Ference Kesner
LLP, New York, New York.
EXPERTS
The
consolidated balance sheets of PolarityTE, Inc. and Subsidiaries as of October 31, 2017 and 2016, and the related consolidated
statements of operations, stockholders’ equity, and cash flows for each of the years then ended, have been audited by EisnerAmper
LLP, independent registered public accounting firm, as stated in their report which is incorporated herein by reference, which
report includes an explanatory paragraph about the existence of substantial doubt concerning our ability to continue as a going
concern. Such financial statements have been incorporated herein by reference in reliance on the report of such firm given upon
their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
We
file annual, quarterly and special reports, along with other information with the SEC. Our SEC filings are available to the public
over the Internet at the SEC’s website at http://www.sec.gov. You may also read and copy any document we file at the SEC’s
Public Reference Room at 100 F Street, NE, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information
on the Public Reference Room.
This
prospectus is part of a registration statement on Form S-3 that we filed with the SEC to register the securities offered hereby
under the Securities Act of 1933, as amended. This prospectus does not contain all of the information included in the registration
statement, including certain exhibits and schedules. You may obtain the registration statement and exhibits to the registration
statement from the SEC at the address listed above or from the SEC’s internet site.
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
This
prospectus is part of a registration statement filed with the SEC. The SEC allows us to “incorporate by reference”
into this prospectus the information that we file with them, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference is considered to be part of this prospectus, and information
that we file later with the SEC, including all filings filed by the registrant pursuant to the Exchange Act after the date of
the initial registration statement and prior to effectiveness of the registration statement, will automatically update and supersede
this information. The following documents are incorporated by reference and made a part of this prospectus:
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our
Annual Report on Form 10-K for the year ended October 31, 2017 filed with the SEC on January 30, 2018, as amended by Amendment
No. 1 on Form 10-K/A filed with the SEC on February 28, 2018;
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Our
Quarterly Report on Form 10-Q for the quarter ended January 31, 2018 filed with the SEC on March 19, 2018;
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our
Current Reports on Form 8-K filed with the SEC on November 3, 2017, November 16, 2017, November 27, 2017, December 29, 2017,
February 9, 2018, March 7, 2018 (as amended on March 8, 2018) and March 8, 2018;
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the
description of our common stock contained in the our Registration Statement on Form 8-A filed with the SEC on January 21,
2005 (File No. 000-51128), including any amendment or report filed for the purpose of updating such description; and
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all
reports and other documents subsequently filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act after
the date of this prospectus and prior to the termination of this offering.
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Notwithstanding
the foregoing, information furnished under Items 2.02 and 7.01 of any Current Report on Form 8-K, including the related exhibits,
is not incorporated by reference in this prospectus.
The
information about us contained in this prospectus should be read together with the information in the documents incorporated by
reference. You may request a copy of any or all of these filings, at no cost, by writing or telephoning us at: 1960 S 4250 W,
Salt Lake city, UT 84104, phone number 385-237-2279.
2,135,550
Shares
PolarityTE,
Inc.
Common
Stock
PROSPECTUS
SUPPLEMENT
Sole
Book-Running Manager
Cantor
June
5, 2018
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