Item 1.01 Entry into a Material Definitive Agreement.
On July 20, 2018, Zynerba Pharmaceuticals, Inc. (the
Company
) entered into an underwriting agreement (the
Underwriting Agreement
) with Cantor Fitzgerald & Co., as representative of the underwriters named therein (the
Underwriters
), relating to the offering, issuance and sale (the
Offering
) of 4,062,500 shares of the Companys common stock, par value $0.001 per share, at a public offering price of $8.00 per share. Pursuant to the Underwriting Agreement, the Company has granted the Underwriters a 30-day option to purchase additional shares of Common Stock in an amount not to exceed 609,375 shares. The net proceeds to the Company from this offering, excluding any exercise by the underwriters of their 30-day option to purchase additional shares, are expected to be approximately $30.0 million after deducting underwriting discounts and commissions and estimated expenses payable by the Company. The closing of the sale of the shares in the Offering is expected to occur on or about July 24, 2018, subject to customary closing conditions. All of the shares in the offering are being sold by the Company.
The Offering is being made pursuant to the Companys effective shelf registration statement on Form S-3 (Registration No. 333-218638) previously filed with the Securities and Exchange Commission (the
SEC
) and a related prospectus supplement and accompanying prospectus filed with the SEC.
The Underwriting Agreement contains customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriters, including for liabilities under the Securities Act of 1933, as amended, other obligations of the parties and termination provisions. The representations, warranties and covenants contained in the Underwriting Agreement were made only for purposes of such agreement and as of specific dates, were solely for the benefit of the parties to such agreement and may be subject to limitations agreed upon by the contracting parties. In addition, pursuant to the terms of the Underwriting Agreement, the Company and its executive officers and directors have entered into agreements with the Underwriters providing that the Company and each of these persons may not, without the prior written approval of Cantor, subject to limited exceptions, offer, sell, transfer or otherwise dispose of the Companys securities for a period of 90 days following the Offering.
The Underwriting Agreement is filed as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated herein by reference. The foregoing description of the terms of the Underwriting Agreement is qualified in its entirety by reference to such exhibit.
The legal opinion of Pepper Hamilton LLP relating to the legality of the issuance and sale of the shares in the Offering is attached as Exhibit 5.1 to this Current Report on Form 8-K.