Avenue Therapeutics Announces Pricing of $12 Million Underwritten Public Offering
October 06 2022 - 11:00PM
Avenue Therapeutics, Inc. (Nasdaq: ATXI) (“Avenue” or the
“Company”), a specialty pharmaceutical company focused on the
development and commercialization of therapies for the treatment of
central nervous system diseases, today announced the pricing of its
underwritten public offering of 3,636,365 common and pre-funded
units. Each common unit consists of one share of common stock and
one warrant to purchase one share of common stock, and each
pre-funded unit consists of one pre-funded warrant to purchase one
share of common stock and one warrant to purchase one share of
common stock. Each share of common stock (or pre-funded warrant) is
being sold together with one warrant at a combined purchase price
of $3.30 per common unit (or $3.2999 per pre-funded unit after
reducing $0.0001 attributable to the exercise price of the
pre-funded warrants).
In addition, Avenue granted the underwriter a
45-day option to purchase additional shares of common stock,
representing 15% of the number of shares of common stock (or
pre-funded warrants) sold in the base offering and additional
warrants, representing up to 15% of the warrants sold in the base
offering, solely to cover over-allotments, if any, which would
increase the total gross proceeds of the offering to approximately
$13.8 million, if the over-allotment option is exercised in
full.
The offering is expected to close on October 11,
2022, subject to the satisfaction of customary closing
conditions.
Avenue expects to use the net proceeds from the
offering, together with its existing cash, to repurchase all of the
shares of its common stock held by InvaGen Pharmaceuticals Inc.,
with the remainder to be used for general corporate purposes and
working capital, including the development of its drug product
candidates.
Aegis Capital Corp. is acting as
sole book-running manager for the offering.
A registration statement on Form S-1 (File No.
333-267206) relating to the offering of the securities was filed
with the U.S. Securities and Exchange Commission (SEC) and declared
effective by the SEC on October 6, 2022. The offering is being made
only by means of a prospectus, copies of which may be obtained by
contacting Aegis Capital Corp., 1345 Avenue of the Americas, 27th
Floor, New York, NY 10105, by telephone at (212) 813-1010 or by
email at syndicate@aegiscap.com. Copies of the registration
statement can be accessed through the SEC's website at
www.sec.gov.
This press release shall not constitute an offer
to sell or a 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 Avenue TherapeuticsAvenue
Therapeutics, Inc. (Nasdaq: ATXI) is a specialty pharmaceutical
company focused on the development and commercialization of
therapies for the treatment of central nervous system diseases.
Avenue is headquartered in New York City.
Forward-Looking Statements This
press release contains predictive or “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of current or
historical fact contained in this press release, including
statements that express our intentions, plans, objectives, beliefs,
expectations, strategies, predictions or any other statements
relating to our future activities or other future events or
conditions are forward-looking statements. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “plan,” “predict,” “project,” “will,” “should,” “would” and
similar expressions are intended to identify forward-looking
statements. These statements are based on current expectations,
estimates and projections made by management about our business,
our industry and other conditions affecting our financial
condition, results of operations or business prospects. These
statements are not guarantees of future performance and involve
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in, or implied by, the
forward-looking statements due to numerous risks and uncertainties.
Factors that could cause such outcomes and results to differ
include, but are not limited to, risks and uncertainties arising
from: expectations for increases or decreases in expenses;
expectations for the clinical and pre-clinical development,
manufacturing, regulatory approval, and commercialization of our
pharmaceutical product candidate or any other products we may
acquire or in-license; our use of clinical research centers and
other contractors; expectations for incurring capital expenditures
to expand our research and development and manufacturing
capabilities; expectations for generating revenue or becoming
profitable on a sustained basis; expectations or ability to enter
into marketing and other partnership agreements; expectations or
ability to enter into product acquisition and in-licensing
transactions; expectations or ability to build our own commercial
infrastructure to manufacture, market and sell our product
candidate; acceptance of our products by doctors, patients or
payors; our ability to compete against other companies and research
institutions; our ability to secure adequate protection for our
intellectual property; our ability to attract and retain key
personnel; availability of reimbursement for our products;
estimates of the sufficiency of our existing cash and cash
equivalents and investments to finance our operating requirements,
including expectations regarding the value and liquidity of our
investments; the volatility of our stock price; expected losses
expectations for future capital requirements; uncertainty
surrounding the Baergic Bio acquisition; and those risks discussed
in our filings which we make with the SEC. Any forward-looking
statements speak only as of the date on which they are made, and we
undertake no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that
may arise after the date of this press release, except as required
by applicable law. Investors should evaluate any statements made by
us in light of these important factors.
Contact: Jaclyn JaffeAvenue
Therapeutics, Inc. (781) 652-4500ir@avenuetx.com
Avenue Therapeutics (NASDAQ:ATXI)
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