SAN DIEGO, Sept. 29, 2017 /PRNewswire/ -- Viking
Therapeutics, Inc. (Viking) (NASDAQ: VKTX), a clinical-stage
biopharmaceutical company focused on the development of novel
therapies for metabolic and endocrine disorders, today announced it
has entered into a $15.0 million
common stock purchase agreement with Lincoln Park Capital Fund, LLC
(LPC), a Chicago-based
institutional investor.
In addition and under a separate purchase agreement, LPC has
agreed to purchase $1.25 million of
Viking's registered common stock at $1.78 per share, which represents a 14% premium
to the closing market price of the stock on September 27, 2017.
Under the common stock purchase agreement, Viking will have the
right and sole discretion to sell to LPC up to $15.0 million in shares of common stock over a
30-month period contingent and commencing upon the effectiveness of
the resale registration statement discussed below and satisfaction
of other conditions contained in the agreement. Proceeds from
the sales will be used for general corporate purposes, including
advancing the company's drug development pipeline.
"This agreement provides Viking with potential future access to
capital at attractive terms," said Brian
Lian, Ph.D., chief executive officer of Viking. "This
affords the company greater flexibility to pursue the most
advantageous path forward with our Phase 2 programs for hip
fracture and fatty liver disease, as well as our earlier-stage
programs. We continue to anticipate top line results from our
Phase 2 trial of VK5211 in hip fracture in the fourth quarter of
2017."
Under the terms of the common stock purchase agreement, Viking
will control the timing and amount of any future sale of shares of
common stock to LPC. LPC has no right to require any sales by
Viking under the agreement, but is obligated to make purchases
according to Viking's direction, as governed by the agreement.
There are no upper limits to the price LPC may pay to
purchase common stock from Viking and the purchase price of the
shares will be based on the prevailing market prices of Viking's
shares at the time of each sale to LPC. LPC has agreed not to
cause or engage in any manner whatsoever, any direct or indirect
short selling or hedging of Viking's shares of common stock.
There are no limitations on the use of proceeds, and there are no
rights of first refusal, participation rights, penalties or
liquidated damages in the purchase agreement. In
consideration for entering into the purchase agreement, Viking has
issued shares of common stock to Lincoln Park as a commitment
fee. Viking maintains the right to terminate the common stock
purchase agreement at any time, at its discretion, without any
additional cost or penalty. A description of the common stock
purchase agreement and related registration rights agreement is set
forth in Viking's Current Report on Form 8-K filed today with
the Securities and Exchange Commission (SEC).
Maxim Group LLC served as a financial advisor to the Company in
connection with the purchase agreements.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy any securities nor will there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or other jurisdiction.
About Viking Therapeutics, Inc.
Viking Therapeutics,
Inc. is a clinical-stage biopharmaceutical company focused on the
development of novel, first-in-class or best-in-class therapies for
metabolic and endocrine disorders. The company's research and
development activities leverage its expertise in metabolism to
develop innovative therapeutics designed to improve patients'
lives. Viking has exclusive worldwide rights to a portfolio
of five therapeutic programs in clinical trials or preclinical
studies, which are based on small molecules licensed from Ligand
Pharmaceuticals Incorporated. The company's clinical programs
include VK5211, an orally available, non-steroidal selective
androgen receptor modulator, or SARM, in Phase 2 development for
the treatment and prevention of lean body mass loss in patients who
have undergone hip fracture surgery, VK2809, a small molecule
thyroid beta agonist in Phase 2 development for
hypercholesterolemia and fatty liver disease, and VK0612, a
first-in-class, orally available drug candidate in Phase 2
development for type 2 diabetes. Viking is also developing
novel and selective agonists of the thyroid beta receptor for
adrenoleukodystrophy, as well as two earlier-stage programs
targeting metabolic diseases and anemia.
About Lincoln Park Capital Fund, LLC
LPC is an
institutional investor headquartered in Chicago, Illinois which manages a portfolio of
investments in public and private entities. These investments
are in a wide range of companies and industries emphasizing life
sciences, specialty financing, cleantech, energy, real estate and
technology. LPC's investments range from multiyear financial
commitments to fund growth to special situation financings to
long-term strategic capital offering companies certainty,
flexibility and consistency. For more information, visit
www.lpcfunds.com.
Forward-Looking Statements
This press release
contains forward-looking statements regarding Viking Therapeutics,
including statements about Viking's expectations regarding the
closing of the transactions contemplated under the stock purchase
agreements and the use of proceeds from the sales of stock under
the stock purchase agreements, the company's ability to sell
shares to LPC pursuant to the $15.0
million common stock purchase agreement, whether the resale
registration statement related to the shares issued and issuable
pursuant to the $15.0 million common
stock purchase agreement with LPC will be declared effective by the
SEC and remain effective, the company's development activities,
expectations regarding the announcement of clinical trial data and
VK5211's, VK2809's and VK0214's potential to produce therapeutic
benefits. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
and reported results should not be considered as an indication of
future performance. These risks and uncertainties include, but are
not limited to: risks associated with the success, cost and timing
of Viking's product candidate development activities and clinical
trials; and risks regarding regulatory requirements, among others
discussed in the "Risk Factors" section of our most recent periodic
reports filed with the SEC, including our most recent Form 10-K and
Form 10-Q, all of which you may obtain for free on the SEC's
website at www.sec.gov. These forward-looking statements speak only
as of the date hereof. Viking disclaims any obligation to
update these forward-looking statements.
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SOURCE Viking Therapeutics, Inc.