Item 1.01
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Entry into a Material Definitive Agreement.
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Underwriting Agreement
On February 19, 2020, BioXcel Therapeutics, Inc. (the “Company”)
entered into an underwriting agreement (the “Underwriting Agreement”) with BofA Securities, Inc., as representative
of the several underwriters named therein (collectively, the “Underwriters”), in connection with the issuance and sale
by the Company in a public offering of 2,000,000 shares of the Company’s common stock at a public offering price of $32.00
per share, less underwriting discounts and commissions, pursuant to an effective shelf registration statement on Form S-3 (Registration
No. 333-230674) and a related prospectus supplement filed with the Securities and Exchange Commission (the “SEC”).
Under the terms of the Underwriting Agreement, the Company has also granted the Underwriters an option exercisable for 30 days
to purchase up to an additional 300,000 shares of its common stock at the public offering price, less underwriting discounts and
commissions. To the extent the underwriters exercise their option to purchase up to 300,000 additional shares of common stock,
the Company intends to use the net proceeds of up to approximately $9.0 million from the sale of additional shares to purchase
the same number of shares of the Company’s common stock from BioXcel Corporation (which shares will then be canceled) at
a price equal to the price paid by the underwriters in the offering for such additional shares.
The closing of the offering is expected to occur on or about
February 24, 2020, subject to the satisfaction of customary closing conditions.
The Company expects to receive net proceeds from the offering
of approximately $60.0 million, after deducting underwriting discounts and commissions and estimated offering expenses payable
by the Company. The Company intends to use the net proceeds of the offering to advance the development of product candidates, including
the funding of clinical trials for BXCL501 for acute treatment of agitation resulting from neurological and psychiatric disorders,
including dementia and opioid withdrawal, and BXCL701 for treatment of a rare form of prostate cancer, pancreatic cancer and solid
tumor indications, and for general corporate purposes, which may include development and commercialization of the Company’s
product candidates, research and development, general and administrative expenses, license or technology acquisitions, and working
capital and capital expenditures.
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 foregoing description of the Underwriting Agreement is not
complete and is qualified in its entirety by reference to the full text of the Underwriting Agreement, a copy of which is filed
as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Latham & Watkins LLP, counsel to the Company, has issued
an opinion to the Company, dated February 20, 2020, regarding the validity of the ordinary shares to be issued and sold in the
offering. A copy of the opinion is filed as Exhibit 5.1 to this Current Report on Form 8-K.
Based on the planned use of proceeds from the offering, the
Company believes that the net proceeds from the offering and its existing cash and cash equivalents will be sufficient to enable
it to fund operating expenses and capital expenditure requirements into the third quarter of 2021. The Company has based this estimate
on assumptions that may prove to be incorrect, and could utilize available capital resources sooner than currently expected. The
amounts and timing of the Company’s actual expenditures will depend on numerous factors, including the progress of the Company’s
clinical trials and other development efforts and other factors, as well as the amount of cash used in the Company’s operations.
Purchase Agreement
On February 18, 2020, the Company entered into a stock
purchase agreement with BioXcel Corporation (the “Purchase Agreement”) pursuant to which, to the extent the
underwriters exercise their option to purchase up to 300,000 additional shares of the Company’s common stock, the
Company intends to use the net proceeds of up to approximately $9.0 million from the sale of additional shares to repurchase
the same number of shares of the Company’s common stock from BioXcel Corporation at a price per share equal to the
price per share paid by the underwriters in the offering for such additional shares. The closing of the share repurchase
(which could occur in multiple parts) will be contingent on the closing of the public offering and the exercise by the
underwriters of their option to purchase additional shares and is expected to occur immediately following the settlement of
any shares in connection with each exercise of such option. Any shares that the Company repurchases from BioXcel Corporation
will be canceled and returned to the status of authorized, but unissued shares.
The foregoing description of the Purchase Agreement is not complete
and is qualified in its entirety by reference to the full text of the Purchase Agreement, a copy of which is filed as Exhibit 10.1
to this Current Report on Form 8-K and is incorporated by reference herein.
Forward-Looking Statements
This Current Report on Form 8-K includes “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this
Current Report on Form 8-K include but are not limited to statements regarding the anticipated amount of net proceeds from the
Offering and the intended use of such proceeds; and the Company’s belief that its cash and cash equivalents will fund its
operations into the third quarter 2021. When used herein, words including “anticipate,” “being,” “will,”
“plan,” “may,” “continue,” and similar expressions are intended to identify forward-looking
statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance
or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. All forward-looking
statements are based upon the Company’s current expectations and various assumptions. The Company believes there is a reasonable
basis for its expectations and beliefs, but they are inherently uncertain. The Company may not realize its expectations, and its
beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements
as a result of various important factors, including, without limitation, its limited operating history; its incurrence of significant
losses; its need for substantial additional funding and ability to raise capital when needed; its limited experience in drug discovery
and drug development; its dependence on the success and commercialization of BXCL501 and BXCL701 and other product candidates;
the failure of preliminary data from its clinical studies to predict final study results; failure of its early clinical studies
or preclinical studies to predict future clinical studies; its ability to receive regulatory approval for its product candidates;
its ability to enroll patients in its clinical trials; its approach to the discovery and development of product candidates based
on EvolverAI is novel and unproven; its exposure to patent infringement lawsuits; its ability to comply with the extensive regulations
applicable to it; its ability to commercialize its product candidates; and the other important factors discussed under the caption
“Risk Factors” in its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019, as such factors
may be updated from time to time in its other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.
These and other important factors could cause actual results
to differ materially from those indicated by the forward-looking statements made in this Current Report on Form 8-K. Any such forward-looking
statements represent management’s estimates as of the date of this Current Report on Form 8-K. While the Company may elect
to update such forward-looking statements at some point in the future, except as required by law, it disclaims any obligation to
do so, even if subsequent events cause Company’s views to change. These forward-looking statements should not be relied upon
as representing the Company’s views as of any date subsequent to the date of this Current Report on Form 8-K.