Ritter Pharmaceuticals, Inc. Raises $23 Million to Fund Initiation of Its Phase 3 Clinical Program in Lactose Intolerance
October 03 2017 - 12:00PM
Ritter Pharmaceuticals, Inc. (NASDAQ: RTTR) (“Ritter
Pharmaceuticals” or the “Company”), a leading developer of novel
therapeutic products that modulate the human gut microbiome to
treat gastrointestinal diseases, today announced the closing of its
previously announced underwritten public offering with total gross
proceeds to the Company of approximately $23 million, before
deducting underwriting discounts, commissions and other offering
expenses payable by the Company.
The proceeds will allow the Company to fund the initiation of
its Phase 3 clinical program of RP-G28 for the treatment of lactose
intolerance, expected to begin in the first half of 2018.
This therapeutic has the potential to become the first U.S. Food
and Drug Administration (FDA) approved treatment for lactose
intolerance. The Phase 3 program incorporates guidance from the
Company’s End-of-Phase 2 meeting with the FDA’s Division of
Gastroenterology and Inborn Errors Products.
The Company sold to the underwriters an aggregate of (i)
34,550,000 Class A Units consisting of 34,550,000 shares of Common
Stock and Warrants to purchase 34,550,000 shares of Common Stock at
a public offering price of $0.40 per unit, and (ii) 9,180 Class B
Units consisting of 9,180 shares of Series A Convertible Preferred
Stock, with a stated value of $1,000, and convertible into an
aggregate of 22,950,000 shares of Common Stock, and Warrants to
purchase an aggregate of 22,950,000 shares of Common Stock. The
Warrants have an exercise price of $0.44, are exercisable upon
issuance and expire five years from the date of issuance.
The Company has granted the underwriters a 45-day option to
purchase an additional 8,625,000 shares of Common Stock and/or
Warrants to purchase an additional 8,625,000 shares of Common
Stock. As of the closing of the offering, the underwriters
have exercised their over-allotment option for Warrants to purchase
2,975,000 shares of Common Stock.
Aegis Capital Corp. acted as the sole book-running manager for
the offering.
The securities described above were offered by the Company
pursuant to a registration statement filed with the Securities and
Exchange Commission (the “SEC”) that was declared effective on
September 28, 2017. The final prospectus relating to the
offering was filed with the SEC on October 2, 2017. The
registration statement and final prospectus are available on the
SEC’s website located at http:///www.sec.gov. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Ritter Pharmaceuticals
Ritter Pharmaceuticals, Inc. (www.RitterPharma.com,
@RitterPharma) develops novel therapeutic products that modulate
the gut microbiome to treat gastrointestinal diseases. Its lead
product, RP-G28, has the potential to become the first FDA-approved
treatment for lactose intolerance, a condition that affects
millions worldwide. The Company is further exploring the
functionality and discovering the therapeutic potential gut
microbiome changes may have on treating/preventing a variety of
conditions including: gastrointestinal diseases, immuno-oncology,
metabolic, and liver disease.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding use of proceeds from the
offering. Management believes that these forward-looking statements
are reasonable as and when made. However, such statements
involve a number of known and unknown risks and uncertainties that
could cause the Company’s future results, performance or
achievements to differ significantly from the results, performance
or achievements expressed or implied by such forward-looking
statements. For a discussion of certain risks and uncertainties
affecting Ritter Pharmaceuticals’ forward-looking statements,
please review the Company’s reports filed with the Securities and
Exchange Commission, including, but not limited to, its Annual
Report on Form 10-K for the period ended December 31, 2016 and
Quarterly Reports on Form 10-Q for the periods ended March 31, 2017
and June 30, 2017. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date on which they are made. These statements are based on
management’s current expectations and Ritter Pharmaceuticals does
not undertake any responsibility to revise or update any
forward-looking statements contained herein, except as expressly
required by law.
Contact
Ellen Mochizuki
310-203-1000
ellen@ritterpharma.com
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