Filed Pursuant to Rule 424(b)(5)
Registration No. 333-251005
Prospectus Supplement
(to Prospectus dated December 17, 2020)
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950,000 Shares of Common Stock
Pre-Funded Warrants to Purchase up to 784,105
Shares of Common Stock
Series A Common Warrants to Purchase up to 1,734,105
Shares of Common Stock
Series B Common Warrants to Purchase up to 1,734,105
Shares of Common Stock
Placement Agent Warrants to Purchase up to 104,046
Shares of Common Stock
Shares of Common Stock Underlying the Pre-Funded
Warrants
Shares of Common Stock Underlying the
Common Warrants and Placement Agent Warrants
We are offering 950,000 shares
of our common stock, par value $0.0001 per share (“Common Stock”), Series A common warrants to purchase up to 1,734,105 shares
of our Common Stock (the “Series A Common Warrants”) and Series B common warrants to purchase up to 1,734,105 shares of our
Common Stock (the “Series B Common Warrants”, together with the Series A Common Warrants the “Common Warrants”)
to a certain institutional investor pursuant to this prospectus supplement and the accompanying prospectus. The offering price for each
share of Common Stock and accompanying Common Warrants to purchase one share of Common Stock is $4.325. The Common Warrants have an exercise
price of $4.075 per share. The Series A Common Warrants are exercisable immediately upon issuance, and will expire five (5) years from
the date of issuance. The Series B Common Warrants are exercisable immediately upon issuance, and will expire eighteen (18) months from
the date of issuance. We are also offering the shares of our Common Stock that are issuable from time to time upon exercise of the Common
Warrants.
We are also offering pre-funded
warrants (the “Pre-Funded Warrants”) to purchase up to an aggregate of 784,105 shares of Common Stock (and the shares of Common
Stock issuable from time to time upon exercise of the Pre-Funded Warrants), to the same institutional investor whose purchase of shares
of Common Stock in this offering would otherwise result in the investor, together with its affiliates and certain related parties, beneficially
owning more than 4.99% (or, at the election of the purchaser, 9.99%) of our outstanding shares of Common Stock following the consummation
of this offering, in lieu of Common Stock that would otherwise result in such purchaser’s beneficial ownership exceeding 4.99% (or,
at the election of the purchaser, 9.99%) of our outstanding Common Stock. A holder of Pre-Funded Warrants will not have the right to exercise
any portion of its Pre-Funded Warrants if the holder, together with its affiliates and certain related parties, would beneficially own
in excess of 4.99% (or, at the election of the holder, 9.99%) of the number of shares of Common Stock outstanding immediately after giving
effect to such exercise. Each Pre-Funded Warrant will be exercisable for one share of Common Stock at an exercise price of $0.0001 per
share of Common Stock. The offering price is $4.3249 per Pre-Funded Warrant and accompanying Common Warrants. Each Pre-Funded Warrant will
be exercisable upon issuance and will expire when exercised in full. The shares of Common Stock or Pre-Funded Warrants, as applicable,
and the accompanying Common Warrants, can only be purchased together in this offering but will be issued separately and will be immediately
separable upon issuance. There is no established public trading market for the Pre-Funded Warrants or the Common Warrants, and we do not
expect a market to develop. We do not intend to apply for listing of the Pre-Funded Warrants or the Common Warrants on any securities
exchange or nationally recognized trading system. Without an active trading market, the liquidity of the Pre-Funded Warrants and the Common
Warrants will be limited.
Effective as of December 6,
2022, we filed a certificate of amendment of our restated certificate of incorporation to effect a reverse stock split of the issued and
outstanding shares of our Common Stock, at a ratio of 1 share for 10 shares (the “Reverse Stock Split”). Unless otherwise
indicated, all share numbers herein, including Common Stock and all securities convertible into Common Stock, give effect to the Reverse
Stock Split. However, documents incorporated by reference into this prospectus that were filed prior to December 6, 2022, do not give
effect to the Reverse Stock Split.
Our Common Stock is listed
on the Nasdaq Capital Market under the symbol “CKPT.” On December 13, 2022, the closing price of our Common Stock as reported
on the Nasdaq Capital Market was $4.60 per share.
We have engaged H.C. Wainwright
& Co., LLC to act as our exclusive placement agent in connection with this offering. The placement agent has agreed to use its reasonable
best efforts to arrange for the sale of the securities offered in this offering. The placement agent is not purchasing or selling any
of the securities we are offering, and the placement agent is not required to arrange the purchase or sale of any specific number of securities
or dollar amount. There is no required minimum number of securities that must be sold as a condition to completion of this offering, and
there are no arrangements to place the funds in an escrow, trust, or similar account. Pursuant to this prospectus supplement and the accompanying
prospectus, we will also issue to the placement agent, or its designees, warrants to purchase up to 104,046 shares of Common Stock (the
“Placement Agent Warrants”) as part of the compensation payable to the placement agent (the shares of Common Stock issuable
upon exercise of the Placement Agent Warrants are also being registered hereby). The Placement Agent Warrants will have substantially
the same terms as the Series A Common Warrants described above, except that the Placement Agent Warrants will have an exercise price of
$5.406 per share (representing 125% of the combined purchase price per Share and accompanying Common Warrants) and will expire five years
following the commencement of the sales pursuant to this offering. See “Plan of Distribution” beginning on page S-17 of
this prospectus supplement for more information regarding these arrangements.
Investing in our securities involves a high degree of risk. See
the information contained under “Risk Factors” on page S-8 of this prospectus supplement and in the documents incorporated
herein by reference.
|
|
Per Share and Accompanying Common Warrants |
|
|
Per Pre-Funded Warrant and Accompanying Common Warrants |
|
|
Total(1) |
|
Offering Price |
|
$ |
4.325 |
|
|
$ |
4. 3249 |
|
|
$ |
7,499,925.71 |
|
Placement Agent Fees(2) |
|
$ |
0.30275 |
|
|
$ |
0.30275 |
|
|
$ |
525,000.29 |
|
Proceeds, Before Expenses, to Us |
|
$ |
4.02225 |
|
|
$ |
4.02215 |
|
|
$ |
6,974,925.43 |
|
(1) |
The amount of the offering proceeds to us presented in this table does not give effect to any exercise of the warrants being issued in this offering. |
|
|
(2) |
In addition, we have agreed (i) pay the placement agent a management fee of 1.0% of the aggregate gross proceeds raised in this offering and pay for certain expenses, (ii) to issue to the placement agent or its designees warrants the Placement Agent Warrants to purchase a number of shares of our Common Stock equal to 6.0% of the aggregate number of shares of Common Stock and shares of Common Stock issuable upon the exercise of Pre-Funded Warrants included in this offering, or 104,046 shares of Common Stock, at an exercise price equal to 125% of the offering price of the Common Stock and accompanying Common Warrant in this offering, or $5.406 per share, and to pay certain expenses of the placement agent in connection with this offering. See “Plan of Distribution” for additional information regarding compensation payable to the placement agent, including the Placement Agent Warrants. |
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined whether this prospectus supplement or
the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Delivery of the shares of
Common Stock, Pre-Funded Warrants, and Common Warrants is expected to be made on or about December 16, 2022, subject to satisfaction of
customary closing conditions.
H.C. Wainwright & Co.
The date of this prospectus supplement is December
14, 2022
TABLE OF CONTENTS
Prospectus Supplement
Prospectus
ABOUT THIS PROSPECTUS SUPPLEMENT
This prospectus supplement
and the accompanying prospectus are part of a “shelf” registration statement on Form S-3 (File No. 333-251005) that we originally
filed with the U.S. Securities and Exchange Commission (the “SEC”), on November 27, 2020 and which became effective on December
17, 2020.
This document is in two parts.
The first part is this prospectus supplement which describes the specific terms of an offering of shares of our Common Stock, Pre-Funded
Warrants, Placement Agent Warrants and Common Warrants and also adds to and updates information contained in the accompanying prospectus
and the documents incorporated by reference in this prospectus supplement and the accompanying prospectus. The second part, the accompanying
prospectus, provides more general information, some of which may not apply to this offering. Generally, when we refer to this prospectus
supplement, we are referring to both parts of this document combined. To the extent there is a conflict between the information contained
in this prospectus supplement and the accompanying prospectus or any document incorporated by reference that we filed with the SEC before
the date of this prospectus supplement, you should rely on the information in this prospectus supplement, provided that if any statement
in one of these documents is inconsistent with a statement in another document having a later date, for example, a document incorporated
by reference in the accompanying prospectus – the statement in the document having the later date modifies or supersedes the earlier
statement.
We further note that the representations,
warranties, and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference herein
were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among
the parties to such agreements, and should not be deemed to be a representation, warranty, or covenant to you. Moreover, such representations,
warranties, or covenants were accurate only as of the date when made. Accordingly, such representation, warranties, and covenants should
not be relied upon as accurately representing the current state of our affairs.
We have not and the placement
agent has not authorized anyone to provide you with any information or to make any representations other than those included or incorporated
by reference in this prospectus supplement and the accompanying prospectus and any relevant free writing prospectus. If you receive any
information not authorized by us, we and the placement agent take no responsibility for, and can provide no assurance as to the reliability
of, such information. We are not making an offer to sell the securities in any jurisdiction where the offer or sale is not permitted.
You should not assume that the information contained or incorporated by reference in this prospectus supplement or the accompanying prospectus
or any relevant free writing prospectus is accurate as of any date other than its respective date.
We are offering to sell, and
seeking offers to buy, securities only in jurisdictions where offers and sales are permitted. The distribution of this prospectus supplement
and the accompanying prospectus and the offering of the securities in certain jurisdictions may be restricted by law. Persons outside
the United States who come into possession of this prospectus supplement and the accompanying prospectus must inform themselves about,
and observe any restrictions relating to, the offering of the securities and the distribution of this prospectus supplement and the accompanying
prospectus outside the United States. This prospectus supplement and the accompanying prospectus do not constitute, and may not be used
in connection with, an offer to sell, or a solicitation of an offer to buy, any securities offered by this prospectus supplement and the
accompanying prospectus by any person in any jurisdiction in which it is unlawful for such person to make such an offer or solicitation.
Unless the context otherwise
requires, “Checkpoint,” the “Company,” “we,” “us,” “our” and similar names
refer to Checkpoint Therapeutics, Inc.
FORWARD-LOOKING STATEMENTS
Certain matters discussed
in this prospectus supplement may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, or the
Securities Act, and the Securities Exchange Act of 1934, as amended, or the Exchange Act, and involve known and unknown risks, uncertainties
and other factors that may cause our actual results, performance or achievements to be materially different from the future results, performance
or achievements expressed or implied by such forward-looking statements. The words “anticipate,” “believe,” “estimate,”
“may,” “expect,” “will,” “could,” “project,” “intend” and similar
expressions are generally intended to identify forward-looking statements. Our actual results may differ materially from the results anticipated
in these forward-looking statements due to a variety of factors, including, without limitation, those discussed under the caption “Risk
Factors” contained in this prospectus supplement, the accompanying prospectus, any applicable free writing prospectus, or under
similar heading in the other documents that are incorporated by reference into this prospectus supplement. All written or oral forward-looking
statements attributable to us are expressly qualified in their entirety by these cautionary statements. Such forward-looking statements
include, but are not limited to, statements about our:
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expectations for increases or decreases in expenses; |
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expectations for the clinical and pre-clinical development, manufacturing, regulatory approval, and commercialization of our pharmaceutical product candidates or any other products we may acquire or in-license; |
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use of clinical research centers and other contractors; |
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expectations as to the timing of commencing or completing pre-clinical and clinical trials and the expected outcomes of those trials, including the novel coronavirus (COVID-19) pandemics or other crises’ potentials to negatively affect the hospitals and clinical sites in which we may conduct any of our clinical trials, and patients’ willingness to access those sites to continue the trials; |
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intention to use data from our ongoing Phase 1
clinical trial of cosibelimab to support the submissions of one or more U.S. Biologics License Applications and relatedly, our assumption
that exclusively foreign clinical data may be acceptable to support marketing approval under Food and Drug Administration regulations;
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expectations regarding the potential differentiation
of cosibelimab, including a potentially favorable study profile as compared to the currently available anti-PD-1 therapies, the two-fold
mechanism of action of cosibelimab translating into potential enhanced efficacy, and the projections of publication and regulatory submission
timelines;
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expectations for incurring capital expenditures to expand our research and development and manufacturing capabilities; |
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expectations for generating revenue or becoming profitable on a sustained basis; |
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expectations or ability to enter into marketing and other partnership agreements; |
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expectations or ability to enter into product acquisition and in-licensing transactions; |
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expectations or ability to build our own commercial infrastructure to manufacture, market and sell our product candidates; |
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expectations for the acceptance of our products by doctors, patients or payors; |
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ability to compete against other companies and research institutions; |
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ability to secure adequate protection for our intellectual property; |
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ability to attract and retain key personnel; |
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ability to obtain reimbursement for our products; |
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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; |
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stock price and the volatility of equity markets; |
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expected losses; and |
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expectations for future capital requirements. |
The forward-looking statements
contained in this prospectus supplement reflect our views and assumptions only as of the date of this prospectus supplement, respectively.
Except as required by law, we assume no responsibility for updating any forward-looking statements. We qualify all of our forward-looking
statements by these cautionary statements. New risks and uncertainties arise from time to time, and it is impossible for us to predict
these events or how they may affect us.
PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights information contained
elsewhere or incorporated by reference in this prospectus supplement and the accompanying prospectus and in the documents we incorporate
by reference. This summary does not contain all of the information that you should consider before deciding to invest in our common stock.
You should read this entire prospectus supplement and the accompanying prospectus carefully, including the ‘‘Risk Factors’’
sections contained in this prospectus supplement and the documents incorporated by reference herein, our consolidated financial statements
and the related notes and the other documents incorporated by reference herein.
Our Business
We
are a clinical-stage immunotherapy and targeted oncology company focused on the acquisition, development and commercialization of novel
treatments for patients with solid tumor cancers. We are evaluating our lead antibody product candidate, cosibelimab, an anti-programmed
death-ligand 1 antibody licensed from the Dana-Farber Cancer Institute (“Dana-Farber”), in an ongoing multi-regional, open-label,
multicohort Phase 1 clinical trial in checkpoint therapy-naïve patients with selected recurrent or metastatic cancers, including
ongoing cohorts in locally advanced and metastatic cutaneous squamous cell carcinoma (“CSCC”) intended to support one or more
applications for marketing approval. In addition, we are evaluating our lead small-molecule, targeted anti-cancer agent, olafertinib (formerly
CK-101), a third-generation epidermal growth factor receptor (“EGFR”) inhibitor, as a potential new treatment for patients
with EGFR mutation-positive non-small cell lung cancer (“NSCLC”).
In
June 2022, we announced interim results from a registration-enabling cohort of our multi-regional, Phase 1 clinical trial of cosibelimab
in patients with locally advanced CSCC that are not candidates for curative surgery or radiation. Cosibelimab demonstrated a confirmed
objective response rate (“ORR”) of 54.8% (95% CI: 36.0, 72.7) based on independent central review of 31 patients enrolled
in the cohort using Response Evaluation Criteria in Solid Tumors version 1.1 (“RECIST 1.1”). The design of the interim analysis
incorporated feedback from the U.S. Food and Drug Administration (“FDA”) and is intended to potentially support the approval
of cosibelimab in this indication.
In
January 2022, we announced topline results from a registration-enabling cohort of our multi-regional, Phase 1 clinical trial of cosibelimab
in patients with metastatic CSCC. The cohort met its primary endpoint, with cosibelimab demonstrating a confirmed ORR of 47.4% (95% CI:
36.0, 59.1) based on independent central review of 78 patients enrolled in the metastatic CSCC cohort using RECIST 1.1.
In
December 2021, we announced the initiation of our CONTERNO study, a multi-regional, open-label, multi-center, randomized Phase 3 trial
of cosibelimab in combination with pemetrexed and platinum chemotherapy for the first-line treatment of patients with NSCLC. The February
2022 Russian invasion of Ukraine and the ensuing response has disrupted our ability to conduct clinical trials in Russia, Ukraine, and
Belarus. We evaluated our ability to expand the number of CONTERNO study sites in our planned Latin American, South African and Asian
Pacific countries, as well as add additional countries to conduct this clinical trial. However, the substantially longer enrollment period
as a result of the conflict makes the CONTERNO study no longer viable. At the time of the conflict, only Russia was open for enrollment.
We expect that the study will be wound down and closed over the coming months.
We
have also entered into various collaboration agreements with TG Therapeutics, Inc., a related party, to develop and commercialize certain
assets in connection with our licenses in the field of hematological malignancies, while we retain the right to develop and commercialize
these assets in solid tumors.
To
date, we have not received approval for the sale of any product candidate in any market and, therefore, have not generated any product
sales from any product candidates. In addition, we have incurred substantial operating losses since our inception, and expect to continue
to incur significant operating losses for the foreseeable future and may never become profitable. As of September 30, 2022, we have an
accumulated deficit of $241.5 million.
We
are a majority-controlled subsidiary of Fortress Biotech, Inc (“Fortress”).
Corporate Information
Checkpoint Therapeutics, Inc.
was incorporated in Delaware on November 10, 2014, and commenced principal operations in March 2015. Our principal executive offices are
located at 95 Sawyer Road, Suite 110, Waltham, MA 02453, and our telephone number is (781) 652-4500. We maintain a website on the Internet
at www.checkpointtx.com and our e-mail address is ir@checkpointtx.com. Our internet website, and the information contained on it, are
not to be considered part of this prospectus supplement or the accompanying prospectus. For further information regarding us and our financial
information, you should refer to our recent filings with the SEC. See “Where You Can Find More Information” and “Incorporation
of Certain Information by Reference.”
A certificate of amendment
of Checkpoint’s certificate of incorporation for a 1-for-10 reverse split of Checkpoint’s issued and outstanding Common Stock
was effective as of December 6, 2022. Unless otherwise indicated, all share numbers herein, including Common Stock and all securities
convertible into Common Stock, give effect to the Reverse Stock Split. However, documents incorporated by reference into this prospectus
that were filed prior to December 6, 2022, do not give effect to the Reverse Stock Split.
Our Common Stock is listed
on the Nasdaq Capital Market under the symbol “CKPT”.
THE OFFERING
Common Stock offered by us
|
950,000 shares of Common Stock. |
Common Warrants offered by us |
Series A Common Warrants to purchase up to an
aggregate of 1,734,105 shares of our Common Stock and Series B Common Warrants to purchase up to an aggregate of 1,734,105 shares of our
Common Stock. Each share of our Common Stock and each Pre-Funded Warrant to purchase one share of our Common Stock is being sold together
with a Series A Common Warrant to purchase one share of our Common Stock and a Series B Common Warrant to purchase one share of our Common
Stock. Each Common Warrant has an exercise price of $4.075 per share, and becomes exercisable immediately upon issuance, Series A Common
Warrants will expire five (5) years following the original date of issuance and Series B Common Warrants will expire eighteen (18) months
following the original date of issuance. The shares of Common Stock or the Pre-Funded Warrants and the accompanying Common Warrants, as
the case may be, can only be purchased together in this offering but will be issued separately and will be immediately separable upon
issuance. This offering also relates to the offering of the 3,468,210 shares of Common Stock issuable upon exercise of the Common Warrants.
See “Description of Securities We Are Offering” on page S-14 of this prospectus supplement.
|
Pre-Funded Warrants offered by us |
Pre-Funded Warrants to purchase up to an
aggregate of 784,105 shares of our Common Stock. Each Pre-Funded Warrant to purchase one share of our Common Stock is being sold
together with a Series A Common Warrant to purchase one share of our Common Stock and a Series B Common Warrant to purchase one
share of our Common Stock. Each Pre-Funded Warrant has an exercise price of $0.0001 per share, is immediately exercisable and will
expire when exercised in full. The Pre-Funded Warrants and the accompanying Common Warrants can only be purchased together in this
offering but will be issued separately and will be immediately separable upon issuance. This offering also relates to the offering
of the 784,105 shares of Common Stock issuable upon exercise of the Pre-Funded Warrants. See “Description of Securities We
Are Offering” on page S-14 of this prospectus supplement.
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Common Stock to be outstanding after this offering |
11,018,537 shares of Common Stock assuming the
full exercise of the Pre-Funded Warrants issued in this offering and no exercise of any Common Warrants or Placement Agent Warrants issued
in this offering.
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Use of proceeds |
We estimate that the net proceeds to us from this
offering will be approximately $6.8 million. We intend to use the net proceeds of this offering to support the continued development of
cosibelimab and olafertinib, the potential in-license, acquisition, development and commercialization of other pharmaceutical products,
and for general corporate purposes.
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Risk Factors |
Investing in our securities involves risks. See
“Risk Factors” beginning on page S-8 of this prospectus supplement or otherwise incorporated by reference in this prospectus
supplement for a discussion of factors to consider before deciding to invest in our securities.
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Nasdaq Capital Market Trading Symbol |
Our Common Stock is listed on the Nasdaq Capital
Market under the symbol “CKPT.” There is no established trading market for the Pre-Funded Warrants or Common Warrants, and
we do not expect a trading market to develop. We do not intend to list the Common Warrants or the Pre-Funded Warrants on any securities
exchange or nationally recognized trading system. Without a trading market, the liquidity of the Pre-Funded Warrants and Common Warrants
will be extremely limited.
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Unless otherwise indicated, all information in
this prospectus related to the number of shares of our Common Stock to be outstanding immediately after this offering is based on 9,284,432
shares of our common stock and Class A common stock outstanding as of September 30, 2022. The number of shares outstanding as of September
30, 2022. excludes:
| · | An aggregate of 131,347 shares of Common Stock reserved for future issuance under our incentive plan; |
| · | 27,000 shares issuable upon exercise of outstanding options with a weighted average exercise price of $30.14; |
| · | 1,249 shares issuable upon exercise of outstanding warrants with a weighted average exercise price of $0.001; |
| · | 85,000 shares issuable upon the vesting of outstanding restricted stock units; |
| · | 43,353 shares of common stock, representing 2.5% of the gross amount of the offering, which will be issued to Fortress immediately
following the offering under the terms of the Founder’s Agreement between the Company and Fortress; |
| · | 3,468,210 shares of Common Stock issuable upon exercise of the Common Warrants issued in this offering; and |
| · | up to 104,046 shares of Common Stock issuable upon exercise of the Placement Agent Warrants with an exercise price of $5.406 per share
to be issued to the placement agent or its designees as compensation in connection with this offering. |
Further, the number of shares
of common stock to be outstanding after this offering does not take into account 17,024 shares of common stock sold under an at-the-market
issuances sales agreement since September 30, 2022, and 425 shares of common stock issued to Fortress pursuant to those sales since September
30, 2022.
Unless otherwise indicated,
all information in this prospectus supplement assumes (i) no exercise of outstanding stock options or warrants or achievement of performance-based
restricted stock units after September 30, 2022 and (ii) no exercise of the Pre-Funded Warrants, Common Warrants, or Placement Agent Warrants
offered and sold in this offering.
RISK FACTORS
Investment in our securities involves risks.
Before deciding whether to invest in our securities, you should consider carefully the risk factors discussed below and those contained
in the section entitled “Risk Factors” contained in our Annual
Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 28, 2022, which is incorporated herein by
reference in its entirety, as well as any amendment or update to our risk factors reflected in subsequent filings with the SEC. If any
of the risks or uncertainties described in our SEC filings actually occurs, our business, financial condition, results of operations or
cash flow could be materially and adversely affected. This could cause the trading price of our common stock to decline, resulting in
a loss of all or part of your investment. The risks and uncertainties we have described are not the only ones facing our company. Additional
risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business operations.
Risks Related to this Offering
You will experience immediate and substantial dilution.
Because the offering price
per share in this offering exceeds the net tangible book value per share of our Common Stock outstanding prior to this offering you will
incur an immediate and substantial dilution in the net tangible book value of the shares of Common Stock you purchase in this offering
or the shares of Common Stock underlying the Pre-Funded Warrants and Common Warrants you purchase in this offering. After giving effect
to the sale by us of: (i) 950,000 shares of our Common Stock at a price of $4.325 per share of Common Stock and associated Common Warrants
and, (ii) 784,105 Pre-Funded Warrants at a price of $4.3249 per Pre-Funded Warrant and associated Common Warrants, and after deducting
placement agent fees and estimated offering expenses payable by us and assuming full exercise of the Pre-Funded Warrants and no exercise
of the Common Warrants, you will experience immediate dilution of $3.835 per share, representing the difference between the effective
offering price per share and our as adjusted net tangible book value per share as of September 30, 2022 after giving effect to this offering
and effected for the one-for-ten reverse stock split. The exercise of warrants, including the Common Warrants issued in this offering,
exercise of outstanding stock options, and vesting of other stock awards may result in further dilution of your investment. See the section
entitled “Dilution” appearing elsewhere in this prospectus supplement for a more detailed illustration of the dilution you
would incur if you participate in this offering.
The trading price of our Common Stock could be highly volatile,
which could result in substantial losses for purchasers of our Common Stock in this offering.
Our stock price is volatile.
The stock market in general and the market for pharmaceutical and biotechnology companies in particular have experienced extreme volatility
that has often been unrelated to the operating performance of particular companies. As a result of this volatility, you may not be able
to sell your Common Stock at or above the offering price and you may lose some or all of your investment. The market price for our Common
Stock may be influenced by many factors, including:
| · | announcements relating to the clinical development of our product candidates; |
| · | announcements concerning the progress of our efforts to obtain regulatory approval for and commercialize
our product candidates or any future product candidate, including any requests we receive from the FDA, or comparable regulatory authorities
outside the United States, for additional studies or data that result in delays or additional costs in obtaining regulatory approval or
launching these product candidates, if approved; |
| · | the depth and liquidity of the market for our Common Stock; |
| · | investor perceptions about us and our business; |
| · | market conditions in the pharmaceutical and biotechnology sectors
or the economy as a whole, which may be impacted by economic or other crises or external factors, including the effects of the COVID-19
pandemic on the global economy; |
| · | price and volume fluctuations in the overall stock market; |
| · | the failure of one or more of our product candidates or any future
product candidate, if approved, to achieve commercial success; |
| · | announcements of the introduction of new products by us or our competitors; |
| · | developments concerning product development results or intellectual
property rights of others; |
| · | litigation or public concern about the safety of our potential products; |
| · | actual fluctuations in our quarterly operating results, and concerns
by investors that such fluctuations may occur in the future; |
| · | deviations in our operating results from the estimates of securities
analysts or other analyst comments; |
| · | additions or departures of key personnel; |
| · | health care reform legislation, including measures directed at controlling
the pricing of pharmaceutical products, and third-party coverage and reimbursement policies; |
| · | developments concerning current or future strategic collaborations;
and |
| · | discussion of us or our stock price by the financial and scientific
press and in online investor communities. |
In the past, securities class
action litigation has often been brought against a company following a decline in the market price of its securities. This risk is especially
relevant for pharmaceutical and biotechnology companies, which have experienced significant stock price volatility in recent years.
We have broad discretion in the use of the net proceeds of this
offering and may not use them effectively.
We intend to use the net proceeds
from this offering for working capital and general corporate purposes, to continue preclinical development and clinical trials of our
product candidates and for the submission of a U.S. Biologics License Application (“BLA”) for cosibelimab. However, our management
will have broad discretion in the application of the net proceeds from this offering and could spend the proceeds in ways that do not
improve our results of operations or enhance the value of our common stock. The failure by management to apply these funds effectively
could result in financial losses that could have a material adverse effect on our business, cause the price of our common stock to decline
and delay the development of our product candidates.
You may experience future dilution as a result of future equity
offerings.
In order to raise additional
capital, we may in the future offer additional shares of our Common Stock or other securities convertible into or exchangeable for our
Common Stock at prices that may not be the same as the price per share in this offering. We may sell shares or other securities in any
other offering at a price per share that is less than the price per share paid by investors in this offering, and investors purchasing
shares or other securities in the future could have rights superior to existing stockholders. If we sell Common Stock, convertible securities,
or other equity securities, investors may be materially diluted by subsequent sales.
There is no public
market for the Common Warrants, Pre-Funded Warrants and Placement Agent Warrants being offered in this offering.
There
is no established public trading market for the Common Warrants, Pre-Funded Warrants and Placement Agent Warrants being
offered in this offering, and we do not expect a market to develop. In addition, we do not intend to apply to list the Common Warrants, Pre-Funded Warrants and
Placement Agent Warrants on any securities exchange or nationally recognized trading system, including Nasdaq. Without an active market,
the liquidity of the Warrants, Pre-Funded Warrants and Placement Agent Warrants will be limited.
Holders of Common
Warrants, Pre-Funded Warrant and Placement Agent Warrants purchased in this offering will have no rights as common stockholders
until such holders exercise such Common Warrants, Pre-Funded Warrants and Placement Agent Warrants and acquire our Common Stock.
Until
holders of Common Warrants, Pre-Funded Warrants and Placement Agent Warrants acquire shares of our Common Stock upon exercise
of such Warrants, Pre-Funded Warrants and Placement Agent Warrants, the holders will have no rights with respect to the shares
of our Common Stock underlying such Common Warrants, Pre-Funded Warrants and Placement Agent Warrants. Upon exercise of the
Warrants, Pre-Funded Warrants and Placement Agent Warrants, the holders will be entitled to exercise the rights of a common
stockholder only as to matters for which the record date occurs after the exercise date.
The warrants being offered are speculative
in nature.
The
warrants do not confer any rights of Common Stock ownership on their holders, such as voting rights or the right to receive dividends,
but rather merely represent the right to acquire shares of Common Stock at a fixed price for a limited period of time. Moreover, following
this offering, the market value of the warrants, if any, will be uncertain and there can be no assurance that the market value of the
warrants will equal or exceed their imputed offering price. The warrants will not be listed or quoted for trading on any market or exchange.
There can be no assurance that the market price of our Common Stock will ever equal or exceed the exercise price of the Common Warrants
or Placement Agent Warrants, and consequently, the Warrants or Placement Agent Warrants may expire valueless.
Risks Related to our Common Stock
There are risks associated with the Reverse Stock Split.
A certificate of amendment
of Checkpoint’s certificate of incorporation for a 1-for-10 reverse split of Checkpoint’s issued and outstanding Common Stock
was effective as of December 6, 2022. There are risks associated with the Reverse Stock Split and there is no assurance that:
| · | the market price per share of our Common Stock after the Reverse Stock Split will rise in proportion to the reduction in the number
of shares of our Common Stock outstanding before the Reverse Stock Split or if it does rise that it will sustain the increase in the share
price; |
| · | the Reverse Stock Split will result in a per share price that will attract brokers and investors who do not trade in lower priced
stocks; |
| · | the Reverse Stock Split will result in a per share price that will increase our ability to attract and retain employees and other
service providers and maintain the minimum stock price required for continued listing on the Nasdaq Capital Market; and |
| · | the liquidity of our Common Stock will increase. |
USE OF PROCEEDS
We expect to receive net
proceeds of approximately $6.8 million from this offering, after deducting estimated offering expenses payable by us, including the placement
agent fees, and excluding the proceeds, if any, from the exercise of the Common Warrants or the Placement Agent Warrants issued in this
offering. We intend to use the net proceeds of this offering to support the continued development of cosibelimab and olafertinib, the
potential in-license, acquisition, development and commercialization of other pharmaceutical products, and for general corporate purposes.
DILUTION
If you invest in our securities
in this offering, your ownership interest will be diluted to the extent of the difference between the effective offering price per share
of our Common Stock and/or Pre-Funded Warrants and Common Warrants in this offering and the as adjusted net tangible book value per share
of our Common Stock immediately after this offering. The net tangible book value of our Common Stock as of September 30, 2022 was approximately
$(1.3) million, or approximately $(0.14) per share of Common Stock based upon 9,284,432 shares of common stock and Class A common
stock outstanding. Net tangible book value per share is equal to our total tangible assets, less our total liabilities, divided by the
total number of shares of Common Stock outstanding as of September 30, 2022, effected for the one-for-ten reverse stock split.
Net tangible book value dilution
per share to investors participating in this offering represents the difference between the effective offering price per share paid by
purchasers of securities in this offering and the as adjusted net tangible book value per share of our Common Stock immediately after
this offering. After giving effect to the sale of 950,000 shares of our Common Stock and associated Common Warrants and Pre-Funded Warrants
to purchase 784,105 shares and associated Common Warrants in this offering at an offering price of $4.325 per share of Common Stock and
accompanying Common Warrants and $4.3249 per Pre-Funded Warrant and accompanying Common Warrants, as applicable, and after deducting estimated
placement agent fees and offering expenses payable by us, and assuming full exercise of the Pre-Funded Warrants and no exercise of the
Common Warrants, our as adjusted net tangible book value as of September 30, 2022 would have been approximately $5.4 million, or $0.49
per share. This represents an immediate increase in net tangible book value of $0.63 per share to existing stockholders and immediate
dilution of $3.835 per share to investors purchasing our securities in this offering at the offering price. The following table illustrates
this dilution on a per share basis:
Offering price per share and accompanying Common Warrants |
|
|
|
|
$ |
4.325 |
|
Historical net tangible book value per share as of September 30, 2022 |
|
$ |
(0.14) |
|
|
|
|
|
Increase in net tangible book value per share attributable to this offering |
|
$ |
0.63 |
|
|
|
|
|
As adjusted net tangible book value per share after giving effect to this offering |
|
|
|
|
|
$ |
0.49 |
|
Dilution in net tangible book value per share to investors participating in this offering |
|
|
|
|
|
$ |
3.835 |
|
The discussion and table above assume no exercise of Common Warrants
and full exercise of the Pre-Funded Warrants sold in this offering and are based on 9,284,432 shares of common stock and Class A common
stock outstanding as of September 30, 2022.. The number of shares outstanding as of September 30, 2022. excludes:
| · | 27,000 shares issuable upon the exercise of outstanding stock options with a weighted-average exercise price of $30.14 per share; |
| · | 1,249 shares issuable upon the exercise of outstanding warrants with a weighted-average exercise price of $0.001 per share; |
| · | 85,000 shares issuable upon the vesting of outstanding restricted stock units; |
| · | An aggregate of 131,347 shares of Common Stock reserved for future issuance under our incentive plan; |
| · | 43,353 shares of common stock, representing 2.5% of the gross amount of the offering, which will be issued to Fortress immediately
following the offering under the terms of the Founder’s Agreement between the Company and Fortress |
| · | 3,468,210 shares of Common Stock issuable upon exercise of the Common Warrants issued in this offering; and |
| · | up to 104,046 shares of Common Stock issuable upon exercise of the Placement Agent Warrants with an exercise price of $5.406 per share
to be issued to the placement agent or its designees as compensation in connection with this offering. |
Further, the number of shares
of common stock to be outstanding after this offering does not take into account 17,024 shares of common stock sold under an at-the-market
issuances sales agreement since September 30, 2022, and 425 shares of common stock issued to Fortress pursuant to those sales since September
30, 2022.
To the extent that outstanding
options or warrants as of September 30, 2022 have been or may be exercised, performance-based restricted stock units have been achieved,
or other shares issued, investors purchasing our securities in this offering may experience further dilution. In addition, we may choose
to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient funds for our current
or future operating plans. To the extent that additional capital is raised through the sale of equity or convertible debt securities,
the issuance of these securities could result in further dilution to our stockholders.
DIVIDEND POLICY
We have never declared or
paid any dividends. We currently intend to retain earnings, if any, for use in our business. We do not anticipate paying dividends in
the foreseeable future. Any future determination to declare dividends will be made at the discretion of our board of directors and will
depend on our financial condition, operating results, capital requirements, general business conditions, and other factors that our board
of directors may deem relevant.
Description
of Securities We Are Offering
Description of Capital Stock
The following description
summarizes the material terms of Checkpoint capital stock. Because it is only a summary, it does not contain all the information that
may be important to you. For a complete description of our capital stock, you should refer to our certificate of incorporation, our bylaws
and to the provisions of applicable Delaware law.
Common Stock
Our common stock is traded
on The Nasdaq Capital Market, or the Exchange, under the symbol “CKPT.”
The authorized capital stock
of Checkpoint consists of 50,000,000 shares of common stock, of which 700,000 shares have been designated as Class A common stock. The
description of our Class A common stock in this item is for information purposes only. All of the Class A common stock has been issued
to Fortress. Class A common stock is identical to common stock other than as to voting rights, the election of directors for a definite
period, and conversion rights. On any matter presented to our stockholders for their action or consideration at any meeting of our stockholders
(or by written consent of stockholders in lieu of meeting), each holder of outstanding shares of Class A common stock will be entitled
to cast for each share of Class A common stock held by such holder as of the record date for determining stockholders entitled to vote
on such matter, the number of votes that is equal to one and one-tenth (1.1) times a fraction, the numerator of which is the sum of the
shares of outstanding common stock and the denominator of which is the number of shares of outstanding Class A common stock. Thus, the
Class A common stock will at all times constitute a voting majority. For a period of ten (10) years from the date of the first issuance
of shares of Class A common stock expiring in 2025 (the “Class A Director Period”), the holders of record of the shares of
Class A common stock (or other capital stock or securities issued upon conversion of or in exchange for the Class A common stock), exclusively
and as a separate class, will be entitled to appoint or elect the majority of the directors of Checkpoint (the “Class A Directors”).
Finally, each share of Class A common stock is convertible, at the option of the holder, into one fully paid and nonassessable share of
common stock (the “Conversion Ratio”), subject to certain adjustments.
If Checkpoint at any time
effects a subdivision of the outstanding common stock (or other capital stock or securities at the time issuable upon conversion of the
Class A common stock) by any stock split, stock dividend, recapitalization or otherwise, the applicable Conversion Ratio in effect immediately
before that subdivision will be proportionately decreased so that the number of shares of common stock (or other capital stock or securities
at the time issuable upon conversion of the Class A common stock) issuable on conversion of each share of Class A common stock will be
increased in proportion to such increase in the aggregate number of shares of common stock (or other capital stock or securities at the
time issuable upon conversion of the Class A common stock) outstanding. If Checkpoint at any time combines the outstanding shares of common
stock, the applicable Conversion Ratio in effect immediately before the combination will be proportionately increased so that the number
of shares of common stock (or other capital stock or securities at the time issuable upon conversion of the Class A common stock) issuable
on conversion of each share of Class A common stock will be decreased in proportion to such decrease in the aggregate number of shares
of common stock (or other capital stock or securities at the time issuable upon conversion of the Class A common stock) outstanding. Additionally,
if any reorganization, recapitalization, reclassification, consolidation or merger involving Checkpoint occurs in which the common stock
(but not the Class A common stock) is converted into or exchanged for securities, cash or other property (other than a transaction involving
the subdivision or combination of the common stock), then, following any such reorganization, recapitalization, reclassification, consolidation
or merger, each share of Class A common stock becomes convertible into the kind and amount of securities, cash or other property which
such Class A Stockholder would have been entitled to receive had he or she converted the Class A Shares immediately before said transaction.
In such case, appropriate adjustment (as determined in good faith by the Board of Directors of Checkpoint) will be made in the application
of the provisions of Checkpoint’s Amended and Restated Certificate of Incorporation relating the subdivision or combination of the
common stock with respect to the rights and interests thereafter of the holders of the Class A common stock, such that the provisions
set forth in of Checkpoint’s Amended and Restated Certificate of Incorporation relating to the subdivision or combination of the
common stock (including the provisions with respect to changes in and other adjustments of the applicable Conversion Ratio) will thereafter
be applicable, as nearly as reasonably may be, in relation to any securities or other property thereafter deliverable upon the conversion
of the Class A common stock. Checkpoint is not authorized to issue preferred stock.
Dividends
The holders of outstanding
shares of our common stock, including Class A Common Stock, are entitled to receive dividends out of funds legally available at the times
and in the amounts that our board of directors may determine. All dividends are non-cumulative.
Voting Rights
The holders of our common
stock are entitled to one vote for each share of common stock held on all matters submitted to a vote of the stockholders, including the
election of directors, except as to the Class A Directors during the Class A Director Period. Our certificate of incorporation and bylaws
do not provide for cumulative voting rights.
Liquidation and Dissolution
Upon our liquidation, dissolution,
or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our
common stock, including Class A Common Stock, outstanding at that time after payment of other claims of creditors, if any.
Other
The holders of our common
stock have no preemptive, conversion, or subscription rights, and there are no redemption or sinking fund provisions applicable to our
common stock.
All of the outstanding shares
of our common stock, including Class A common stock, are duly issued, fully paid and non-assessable.
Series A Warrants and Series B Warrants
The following summary of certain
terms and provisions of the Series A Warrants and the Series B Warrants included with the Common Stock and the Pre-Funded Warrants that
are being offered hereby is not complete and is subject to, and qualified in its entirety by, the provisions of the Series A Warrants
and the Series B Warrants, respectively, the forms of which will be filed as an exhibit to our Current Report on Form 8-K and which will
be incorporated by reference herein. Prospective investors should carefully review the terms and provisions of each of the form of Series
A Warrant and Series B Warrant, respectively, for a complete description of the terms and conditions of these Warrants. The terms and
conditions of the Series A Warrants and the Series B Warrants are identical, except for the expiration date of each, which is described
below.
Duration and Exercise Price
Each Series A Warrant and
Series B Warrant offered hereby will be a Warrant to purchase one share of Common Stock and will have an initial exercise price equal
to $4.075 per share. The Series A Warrants will be immediately exercisable and will expire five years from the date of issuance. The Series
B Warrants will be immediately exercisable and will expire eighteen months from the date of issuance. The exercise price and number of
shares of Common Stock issuable upon exercise is subject to appropriate adjustment in the event of share dividends, share splits, reorganizations
or similar events affecting our Common Stock and the exercise price. Subject to the rules and regulations of the applicable trading market,
we may at any time during the term of the Warrants, subject to the prior written consent of the holders, reduce the then current exercise
price to any amount and for any period of time deemed appropriate by our board of directors. The Warrants will be issued separately from
the shares of Common Stock, or the Pre-Funded Warrants, as the case may be.
Pre-Funded Warrants
We are also offering Pre-Funded
Warrants to purchase up to an aggregate of 784,105 shares of Common Stock (and the shares of Common Stock issuable from time to time upon
exercise of the Pre-Funded Warrants), to the same institutional investor whose purchase of shares of Common Stock in this offering would
otherwise result in the investor, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at
the election of the purchaser, 9.99%) of our outstanding shares of Common Stock following the consummation of this offering, in lieu of
Common Stock that would otherwise result in such purchaser’s beneficial ownership exceeding 4.99% (or, at the election of the purchaser,
9.99%) of our outstanding Common Stock. A holder of Pre-Funded Warrants will not have the right to exercise any portion of its Pre-Funded
Warrants if the holder, together with its affiliates and certain related parties, would beneficially own in excess of 4.99% (or, at the
election of the holder, 9.99%) of the number of shares of Common Stock outstanding immediately after giving effect to such exercise. Each
Pre-Funded Warrant will be exercisable for one share of Common Stock at an exercise price of $0.0001 per share of Common Stock. The offering
price is $4.3249 per Pre-Funded Warrant and accompanying Common Warrants. Each Pre-Funded Warrant will be exercisable upon issuance and
will expire when exercised in full. The shares of Common Stock or Pre-Funded Warrants, as applicable, and the accompanying Common Warrants,
can only be purchased together in this offering but will be issued separately and will be immediately separable upon issuance. There is
no established public trading market for the Pre-Funded Warrants or the Common Warrants, and we do not expect a market to develop. We
do not intend to apply for listing of the Pre-Funded Warrants or the Common Warrants on any securities exchange or nationally recognized
trading system. Without an active trading market, the liquidity of the Pre-Funded Warrants and the Common Warrants will be limited. The
summary of certain terms and provisions of the Pre-Funded Warrant is not complete and is subject to, and qualified in its entirety by,
the provisions of the form of which will be filed as an exhibit to our Current Report on Form 8-K and which will be incorporated by reference
herein.
Placement Agent Warrants
We have also agreed to issue
to issue to H.C. Wainwright & Co., LLC (or its permitted assignees) Placement Agent Warrants to purchase a number of shares of our
Common Stock equal to 6.0% of the aggregate number of shares of Common Stock and shares of Common Stock issuable upon the exercise of
Pre-Funded Warrants included in this offering, or 104,046 shares of Common Stock, at an exercise price equal to 125% of the offering price
of the Common Stock and accompanying Common Warrants in this offering, or $5.406 per share, and to pay certain expenses of the placement
agent in connection with this offering. The Placement Agent Warrants will be exercisable immediately and will expire five years from the
commencement of sales in the offering. Except as provided herein, the Placement Agent Warrants will have substantially the same terms
as the Series A Warrants issued to the investor in the offering. The summary of certain terms and provisions of the Placement Agent Warrants
is not complete and is subject to, and qualified in its entirety by, the provisions of the form of which will be filed as an exhibit to
our Current Report on Form 8-K and which will be incorporated by reference herein.
PLAN OF DISTRIBUTION
We
have engaged H.C. Wainwright & Co., LLC (the “placement agent”) to act as our exclusive placement agent, on a reasonable
best-efforts basis, in connection with this offering pursuant to this prospectus supplement and accompanying prospectus. The terms of
this offering are subject to market conditions and negotiations between us, the placement agent, and prospective investors. The engagement
agreement does not give rise to any commitment by the placement agent to purchase any of the securities, and the placement agent will
have no authority to bind us by virtue of the engagement agreement. The placement agent is not purchasing the securities offered by us
in this offering and is not required to sell any specific number or dollar amount of securities but will assist us in this offering on
a reasonable best-efforts basis. Further, the placement agent does not guarantee that it will be able to raise new capital in any prospective
offering. The placement agent may engage sub-agents or selected dealers to assist with the offering. The placement agent has no commitment
to buy any of the securities offered pursuant to this prospectus supplement and accompanying prospectus. We have entered into a securities
purchase agreement directly with the investor in connection with this offering, and we will only sell to investors who have entered into
the securities purchase agreement. We may not sell the entire amount of shares of our Common Stock, Pre-Funded Warrants and
Common Warrants offered pursuant to this prospectus supplement.
We
expect to deliver the shares of our Common Stock, Pre-Funded Warrants and Warrants being offered pursuant to this prospectus
supplement on or about December 16, 2022, subject to satisfaction of customary closing conditions.
We
have agreed to indemnify the placement agent against specified liabilities relating to or arising out of the agent’s activities
as placement agent.
Fees and Expenses
We
have agreed to pay the placement agent in connection with this offering (i) a cash fee equal to 7.0% of the aggregate gross proceeds
of this offering, (ii) a management fee equal to 1.0% of the aggregate gross proceeds of this offering, (iii) a non-accountable expense
allowance of $75,000 and (iv) $15,950 for the clearing expenses.
We
estimate that the total expenses payable by us in connection with this offering, excluding the placement agent fees and expenses referred
to above, will be approximately $225,000.
Placement Agent Warrants
In
addition, we have agreed to issue to the placement agent, or its designees, at the closing of this offering, Placement Agent Warrants
to purchase 6.0% of the number of shares of our Common Stock and Pre-Funded Warrants sold in this offering (or warrants to purchase
up to 104,046 shares of our Common Stock), at an exercise price of $5.406 per share (representing 125% of the offering price per Share
and accompanying Common Warrants). The Placement Agent Warrants and the shares of our Common Stock issuable upon exercise thereof are
being registered hereby.
The
Placement Agent Warrants will be exercisable immediately upon issuance and will expire five years from the commencement of sales in
the offering.
Except
as provided above, The Placement Agent Warrants will have substantially the same terms as the Series A Warrants issued to the investor
in the offering.
Tail Financing Payments
We
have also agreed to pay the placement agent, subject to certain exceptions, a tail fee equal to the cash and warrant compensation in this
offering, if any investor, who was contacted or introduced to us by placement agent during the term of the engagement, provides us with
capital in any public or private offering or other financing or capital raising transaction during the 12-month period following
the termination or expiration of our engagement agreement.
Right of First Refusal
In
addition, we have granted a right of first refusal to the placement agent pursuant to which it has the right to act as the exclusive manager
or underwriter or agent, as applicable, if we or our subsidiaries finance any indebtedness using an agent, or raise capital through a
public or private offering of equity, equity-linked or debt securities at any time prior to the 10-month anniversary of the
consummation date of this offering.
Lock-up Agreement
We
have agreed to be subject to a lock-up for a period of 60 days following the date of closing of the offering pursuant to this
prospectus supplement and accompanying prospectus. This means that, during the applicable lock-up period, we may not issue,
enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or their equivalents, subject
to certain exceptions. In addition, subject to certain exceptions, we have agreed to not issue any securities that are subject to a price
reset based on the trading prices of our Common Stock or upon a specified or contingent event in the future, or enter into any agreement
to issue securities at a future determined price for a period of one year following the closing date of this offering.
Regulation M
The
placement agent may be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act, and any commissions
received by it and any profit realized on the resale of the securities sold by it while acting as principal might be deemed to be underwriting
discounts or commissions under the Securities Act. As an underwriter, the placement agent would be required to comply with the requirements
of the Securities Act and the Exchange Act, including, without limitation, Rule 415(a)(4) under the Securities Act and Rule 10b-5 and
Regulation M under the Exchange Act. These rules and regulations may limit the timing of purchases and sales of common shares by Wainwright
acting as principal. Under these rules and regulations, the placement agent:
|
• |
|
may not engage in any stabilization activity in connection with our securities; and |
|
• |
|
may not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities, other than as permitted under the Exchange Act, until it has completed its participation in the distribution. |
Other Relationships
From
time to time, the placement agent has provided and may provide in the future, various advisory, investment and commercial banking and
other services to us in the ordinary course of business, for which it may receive customary fees and commissions. Except as disclosed
in this prospectus supplement, we have no present arrangements with the placement agent for any services.
Listing of Common Stock
Our
Common Stock is listed on the Nasdaq Capital Market under the symbol “CKPT.” There is no established public trading market
for the Common Warrants, Pre-Funded Warrants or the Placement Agent Warrants, and we do not expect a market to develop.
LEGAL MATTERS
Certain legal matters in connection
with this offering and the validity of the securities offered by this prospectus will be passed upon for us by Alston & Bird LLP,
New York, New York.
EXPERTS
The financial statements as of December 31, 2021
and 2020 and for each of the two years in the period ended December 31, 2021 incorporated by reference in this prospectus supplement have
been so incorporated in reliance on the report of BDO USA, LLP, an independent registered public accounting firm, incorporated herein
by reference, given on the authority of said firm as experts in auditing and accounting.
As of July 15, 2022, KPMG LLP was engaged as
our registered independent public accounting firm.
WHERE YOU CAN FIND MORE INFORMATION
We file reports with the SEC
on an annual basis using Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The SEC maintains a website that contains
annual, quarterly, and current reports, proxy statements, and other information that issuers (including us) file electronically with the
SEC. The SEC’s website address is www.sec.gov. You can also obtain copies of materials we file with the SEC from our internet website
found at www.checkpointtx.com. Our stock is quoted on the Nasdaq Capital Market under the symbol “CKPT.”
This prospectus supplement
is only part of a registration statement on Form S-3 that we have filed with the SEC under the Securities Act and therefore omits certain
information contained in the registration statement. We have also filed exhibits and schedules with the registration statement that are
excluded from this prospectus supplement, and you should refer to the applicable exhibit or schedule for a complete description of any
statement referring to any contract or other document. You may inspect a copy of the registration statement, including the exhibits and
schedules, without charge, at the SEC’s website.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to “incorporate
by reference” the information we file with them, which means that we can disclose important information to you by referring you
to those documents instead of having to repeat the information in this prospectus supplement and accompanying prospectus. The information
incorporated by reference is considered to be part of this prospectus supplement and accompanying prospectus, and later information that
we file with the SEC will automatically update and supersede this information. This prospectus supplement incorporates by reference the
documents listed below (other than, unless otherwise specifically indicated, current reports furnished under Item 2.02 or Item 7.01 of
Form 8-K and exhibits filed on such form that are related to such items):
|
a) |
Our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 28, 2022; |
|
b) |
Our Quarterly Reports on Form 10-Q for the quarters ended March 31,
2022, June 30, 2022, and September 30, 2022 filed with the SEC on May
12, 2022, and August
12, 2022, and November 10, 2022 respectively; |
|
c) |
Our Current Reports on Form 8-K filed with the SEC on January 25, 2022, March 28, 2022, May 12, 2022, June 15, 2022, June 16, 2022, July 21, 2022, August 12, 2022, November 4, 2022, November 9, 2022, and December 5, 2022; |
All reports and other documents
we subsequently file pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the termination of this offering, including
all such documents we may file with the SEC after the date of the initial registration statement and prior to the effectiveness of the
registration statement, but excluding any information furnished to, rather than filed with, the SEC, will also be incorporated by reference
into this prospectus supplement and deemed to be part of this prospectus supplement from the date of the filing of such reports and documents.
We will provide to each person,
including any beneficial owner, to whom a copy of this prospectus supplement and the related prospectus is delivered, a copy of any or
all of the information that we have incorporated by reference into this prospectus supplement and the related prospectus, but not delivered
with this prospectus supplement and the related prospectus. We will provide this information upon written or oral request at no cost to
the requester. You may request this information by contacting our corporate headquarters at the following address: 95 Sawyer Road, Suite
110, Waltham, Massachusetts 02453, Attn: Chief Financial Officer, or by calling (781) 652-4500.
PROSPECTUS
$100,000,000
![](https://content.edgar-online.com/edgar_conv_img/2022/12/16/0001104659-22-127550_logo.jpg)
Common Stock
Warrants
Debt Securities
Units
We may offer and sell an indeterminate
number of shares of our common stock, warrants to purchase common stock, debt securities, or units representing some or all of
these securities from time to time under this prospectus. You should read this prospectus and any prospectus supplement carefully
before you invest.
We may offer our securities in one or more
offerings in amounts, at prices, and on terms determined at the time of the offering. We may sell our securities through agents
we select or through underwriters and dealers we select. If we use agents, underwriters or dealers, we will name them and describe
their compensation in a prospectus supplement.
This prospectus provides a general description
of the securities we may offer. Each time we sell securities, we will provide specific terms of the securities offered in a supplement
to this prospectus. The prospectus supplement may also add, update or change information contained in this prospectus. You should
read this prospectus and the applicable prospectus supplement carefully before you invest in any securities. This prospectus may
not be used to consummate a sale of securities unless accompanied by the applicable prospectus supplement.
Our common stock is listed for trading
on the Nasdaq Capital Market under the symbol CKPT.
We are an “emerging growth company”
as defined in the Jumpstart Our Business Startups Act and will therefore be subject to reduced reporting requirements.
Investing in our securities involves
risks. See “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, which has
been filed with the U.S. Securities and Exchange Commission and are incorporated by reference into this prospectus. You should
read this entire prospectus carefully before you make your investment decision.
Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy
of this prospectus. Any representation to the contrary is a criminal offense.
The date of this
prospectus is December 17, 2020.
TABLE OF CONTENTS
CHECKPOINT
THERAPEUTICS, INC.
Our business
We are a clinical-stage immunotherapy and
targeted oncology company focused on the acquisition, development and commercialization of novel treatments for patients with solid
tumor cancers. We are evaluating our lead antibody product candidate, cosibelimab, an anti-programmed death-ligand 1 (“PD-L1”)
antibody licensed from the Dana-Farber Cancer Institute, in an ongoing global, open-label, multicohort Phase 1 clinical trial in
checkpoint therapy-naïve patients with selected recurrent or metastatic cancers, including ongoing cohorts in locally advanced
and metastatic cutaneous squamous cell carcinoma intended to support one or more applications for marketing approval. In addition,
we are evaluating our lead small-molecule, targeted anti-cancer agent, CK-101, a third-generation epidermal growth factor receptor
(“EGFR”) inhibitor, as a potential new treatment for patients with EGFR mutation-positive non-small cell lung cancer
(“NSCLC”).
We have also entered into various collaboration
agreements with TG Therapeutics, Inc. (“TGTX”), a related party, to develop and commercialize certain assets in
connection with our licenses in the field of hematological malignancies, while we retain the right to develop and commercialize
these assets in solid tumors.
To date, we have not received approval
for the sale of any product candidate in any market and, therefore, have not generated any product sales from any product candidates.
In addition, we have incurred substantial operating losses since our inception, and expect to continue to incur significant operating
losses for the foreseeable future and may never become profitable. As of September 30, 2020, we have an accumulated deficit
of $133.0 million.
We are a majority-controlled subsidiary
of Fortress Biotech, Inc. (“Fortress”).
Our products under development
Immuno-Oncology Agents
Cosibelimab (Anti-PD-L1) Program
Cosibelimab (formerly referred to as CK-301)
is a fully-human monoclonal antibody of IgG1 subtype that directly binds to PD-L1 and blocks the PD-L1 interaction with the Programmed
Death Receptor-1 (“PD-1”) and B7.1 receptors. Cosibelimab’s primary mechanism of action is based on the inhibition
of the interaction between PD-L1 and its receptors PD-1 and B7.1, which removes the suppressive effects of PD-L1 on anti-tumor
CD8+ T-cells to restore the cytotoxic T cell response.
Numerous preclinical and clinical studies
of third-parties have demonstrated that antibodies that block the interaction of PD-1 with its ligands, PD-L1 and PD-L2, or those
that block only the interaction of PD-L1 with PD-1 can augment anti-tumor T-cell responses and lead to complete and lasting tumor
eradication in a certain proportion of patients. Confirmed overall response rates (“ORRs”) in the labels for the Food
and Drug Administration (“FDA”) approved PD-1 and PD-L1 blocking antibodies were cited in the 20-45% range based on
clinical trials in patients with metastatic melanoma and NSCLC. Potent therapeutic anti-tumor responses due to blocking of PD-1/PD-L1
interaction have been demonstrated by these approved products in patients with various solid tumors including, but not limited
to, NSCLC, melanoma, RCC, head and neck cancer, cutaneous squamous cell carcinoma (“CSCC”) and urothelial carcinoma.
We are developing cosibelimab in solid
tumor oncology indications where studies of other PD-1/PD-L1 antibodies have shown to be effective. We licensed the exclusive worldwide
rights to certain anti-PD-L1 antibodies from Dana-Farber Cancer Institute in March 2015. Also in March 2015, we entered
into a Global Collaboration Agreement with TGTX, a related party, to develop and commercialize anti-PD-L1 antibodies in the field
of hematological malignancies. We retain the right to develop and commercialize our anti-PD-L1 antibodies in solid tumors. We believe
that cosibelimab has the potential to be effective in many oncological indications as a monotherapy or in combination with other
anti-tumor immune response potentiating compounds and targeted therapies.
We commenced a Phase 1 multi-center clinical
study for cosibelimab in October 2017. The study is evaluating the safety and tolerability of ascending doses of cosibelimab
in checkpoint therapy-naïve patients with selected recurrent or metastatic cancers. Following completion of dose escalation
in March 2018, multiple dose expansion cohorts were initiated. In September 2020, we announced updated interim results
from our ongoing Phase 1 clinical trial of cosibelimab. The data were presented in a poster presentation at the ESMO Virtual Congress
2020. We continue to enroll CSCC patients to support one or more biologics license application (“BLA”) submissions
to the FDA for cosibelimab based on this ongoing clinical trial. The primary endpoint is ORR, and secondary endpoints include duration
of response, progression-free survival (“PFS”), and overall survival.
CK-302 (Anti-GITR) Program
Our anti-GITR monoclonal antibody, CK-302,
is a fully human agonistic antibody that is designed to bind to and trigger signaling in GITR expressing cells. Scientific literature
indicates that GITR is a co-stimulatory molecule of the TNF receptor family and is expressed on activated T cells, B cells, natural
killer (“NK”) and regulatory T-cells (“Treg”). As a co-stimulatory molecule, GITR engagement increases
proliferation, activation, and cytokine production of CD4+ and CD8+ T-cells. We believe our anti-GITR monoclonal antibody has the
potential to abrogate immunosuppressive activity of natural Treg on expansion of T-effector cells. GITR-specific agonistic monoclonal
antibodies under development by third parties have been shown to induce tumor regression in vivo through the activation of CD4+
T-cells, CD8+ T-cells and NK cells in a number of tumor models.
We are developing CK-302 for oncology indications
where scientific literature supports the potential for an anti-GITR to be effective. We licensed the exclusive worldwide rights
to anti-GITR antibodies from Dana-Farber Cancer Institute in March 2015. Also in March 2015, we entered into a Global
Collaboration Agreement with TGTX to develop and commercialize anti-GITR antibodies in the field of hematological malignancies.
We retain the right to develop and commercialize anti-GITR antibodies in solid tumors. We believe that an anti-GITR antibody has
the potential to be effective in many oncological indications as a monotherapy or in combination with an anti-PD-L1 or anti-CAIX
antibody as well as other anti-tumor immune response potentiating compounds and targeted therapies.
Currently, we are in preclinical development
for this program.
Targeted Anti-Cancer Agents
CK-101 (also known as RX518) EGFR
Inhibitor Program
We are developing CK-101 as an oral, third-generation,
irreversible kinase inhibitor against selective mutations of EGFR. Activating mutations in the tyrosine kinase domain of EGFR
such as L858R and exon 19 deletion are found in approximately 20% of patients with advanced NSCLC. Compared to chemotherapy, first-generation
EGFR inhibitors significantly improved ORR and progression-free survival in previously untreated NSCLC patients carrying EGFR mutations. However,
tumor progression could develop due to resistance mutations, often within months of treatment with first-generation EGFR inhibitors.
The EGFR T790M “gatekeeper”
mutation is the most common resistance mutation found in patients treated with first-generation EGFR inhibitors. The mutation
decreases the affinity of first-generation inhibitors to EGFR kinase domain, rendering the drugs ineffective. Second-generation
EGFR inhibitors have improved in vitro potency against the T790M mutation, but have not provided meaningful benefits
in NSCLC patients due to toxicity from also inhibiting wild-type EGFR.
Third-generation EGFR inhibitors are designed
to be highly selective against the EGFR T790M mutation with minimal inhibition of wild-type EGFR, thereby improving tolerability
and safety profiles. In November 2015, Tagrisso ® (osimertinib), a third-generation EGFR tyrosine
kinase inhibitor ("TKI") developed by AstraZeneca plc that specifically targets the EGFR activating and T790M resistance
mutations, received accelerated FDA approval for the treatment of patients with metastatic EGFR T790M mutation-positive NSCLC who
have progressed on or after receiving EGFR TKI therapy. Tagrisso received full approval from the FDA in 2017 based on data from
a randomized, Phase 3 trial, in which Tagrisso significantly improved PFS versus platinum-based doublet chemotherapy, providing
10.1 months of median PFS compared to 4.4 months from chemotherapy.
In addition, third-generation inhibitors
may also inhibit EGFR activating mutations seen in first-line NSCLC patients and have shown efficacy in monotherapy studies. In
April 2018, Tagrisso received FDA approval for the first-line treatment of NSCLC patients with EGFR mutations based on data
from a randomized, Phase 3 trial, in which Tagrisso significantly improved PFS versus first-generation EGFR inhibitors, providing
18.9 months of median PFS compared to 10.2 months from EGFR TKI comparators erlotinib or gefitinib.
We are developing CK-101 for the treatment
of NSCLC patients carrying the susceptible EGFR mutations. These include EGFR L858R and exon 19 deletion mutations in first-line
NSCLC patients as well as the EGFR T790M mutation in second-line NSCLC patients. We believe that CK-101 has the potential
to be effective in these oncological indications as a monotherapy or in combination with other anti-tumor immune response potentiating
compounds.
In March 2015, Fortress entered into
an exclusive license agreement with NeuPharma, Inc., which agreement was assigned to us by Fortress on the same date, to develop
and commercialize novel covalent third-generation EGFR inhibitors on a worldwide basis outside of certain Asian countries. In
August 2016, the FDA accepted our IND application and we initiated a Phase 1/2 clinical trial in September 2016. The
trial is evaluating the safety and tolerability of ascending doses of CK-101 in patients with advanced solid tumors to determine
the maximum tolerated dose and the safety and efficacy of CK-101 in patients with EGFR mutation-positive NSCLC. In September 2018,
we announced preliminary interim data from our ongoing clinical trial of CK-101. The data were presented in an oral presentation
at the International Association for the Study of Lung Cancer 19th World Conference on Lung Cancer in Toronto. The trial is ongoing
to identify the optimal dose to maximize therapeutic effect, following which a Phase 3 trial is planned to initiate in treatment-naïve
EGFR mutation-positive NSCLC patients.
CK-103 BET Inhibitor Program
We
are developing CK-103, a novel, selective and potent small molecule inhibitor of bromodomain and extra-terminal (“BET”)
bromodomains. CK-103 binds to the first and second bromodomains (BD1, BD2) of the BET protein family, BRD2, BRD3, BRD4, and BRDT.
A bromodomain is an amino acid protein domain that recognizes acetylated-lysine. The binding of the drug prevents interaction between
BET proteins and both acetylated histones and transcription factors. Therefore, BET proteins, such as BRD4, are considered potential
therapeutic targets in cancer, as they may play a pivotal role in regulating the transcription of key regulators of cancer cell
growth and survival, including the c-Myc oncogene. BRD4 is often required for expression of c-Myc. Scientific literature has shown
that small molecule inhibition of BET bromodomains may lead to selective killing of tumor cells across a broad range of hematologic
malignancies and certain targeted solid tumors. We plan to develop CK-103 for the treatment of various advanced and metastatic
solid tumor cancers, including, but not limited to, those associated with elevated c-Myc expression.
In May 2016, we entered into an exclusive
license agreement with Jubilant Biosys Limited to develop and commercialize novel compounds that inhibit BET bromodomains on a
worldwide basis. Also in May 2016, we entered into a Sublicense Agreement with TGTX to develop and commercialize CK-103 in
the field of hematological malignancies. We retain the right to develop and commercialize CK-103 in solid tumors. We completed
the required CMC, pharmacology and toxicology activities that we believe will support an IND application filing.
Anti-CAIX Research Program
Our anti-carbonic anhydrase IX (“CAIX”)
antibody is a fully human preclinical antibody designed to recognize CAIX expressing cells and kill them via antibody-dependent
cell-mediated cytotoxicity (“ADCC”) and complement-dependent cytotoxicity (“CDC”). Scientific literature
indicates that CAIX is a well characterized tumor associated antigen with expression almost exclusively limited to the cells of
renal cell carcinoma (“RCC”). More than 85% of RCC cases have been demonstrated to express high levels of CAIX expression.
There is very limited expression of this antigen on healthy tissue which we believe will limit reactivity of this antibody against
healthy tissues.
In 2015, preclinical data were published
in the peer-reviewed journal, Molecular Cancer, that demonstrated that our anti-CAIX antibodies could trigger killing of CAIX-positive
human RCC cell lines in tissue culture via ADCC and CDC. The killing activity correlated positively with the level of CAIX expression
on RCC tumor cell lines. In addition, the study demonstrated that our anti-CAIX antibodies inhibited growth of CAIX-positive tumors
in a mouse xenograft model as well as led to the activation of T-cells and NK cells.
We plan to develop an anti-CAIX antibody
for the treatment of patients with RCC in combination with an anti-PD-L1 and/or anti-GITR antibody as well as potentially other
anti-tumor immune response potentiating compounds and/or targeted therapies.
We licensed the exclusive worldwide rights
to certain anti-CAIX antibodies from Dana-Farber Cancer Institute in March 2015. Currently, we are in preclinical development
for this program.
Company information
Our principal executive offices are located
at 2 Gansevoort St., 9th Floor, New York, New York 10014, and our telephone number is (781) 652-4500. We maintain
a website on the Internet at www.checkpointtx.com and our e-mail address is ir@checkpointtx.com. Our internet website, and the
information contained on it, are not to be considered part of this prospectus. For further information regarding us and our financial
information, you should refer to our recent filings with the SEC. See “Where You Can Find More Information” and “Incorporation
of Certain Information by Reference.”
IMPORTANT
INFORMATION ABOUT THIS PROSPECTUS
In this prospectus,
unless the context suggests otherwise, references to “Checkpoint Therapeutics,” “Checkpoint,” the “Company,”
“we,” “us” and “our” refer to Checkpoint Therapeutics, Inc.
This prospectus is
part of a “shelf” registration statement that we filed with the SEC. By using a shelf registration statement, we may
sell our securities, as described in this prospectus, from time to time in one or more offerings. We may use the shelf registration
statement to offer and sell securities described in this prospectus. Each time we sell securities, we will provide a prospectus
supplement to this prospectus that contains specific information about the terms of such offering. The prospectus supplement may
also add, update or change information contained in this prospectus. Before purchasing any securities, you should carefully read
both this prospectus and any prospectus supplement, together with the additional information incorporated into this prospectus
or described under the heading “Where You Can Find More Information.”
You should rely only
on the information contained or incorporated by reference in this prospectus and any prospectus supplement. We have not authorized
any other person to provide you with different information. If anyone provides you with different or inconsistent information,
you should not rely on it. We will not make an offer to sell securities in any jurisdiction where the offer or sale is not permitted.
You should assume that the information appearing in this prospectus, as well as information we previously filed with the Securities
and Exchange Commission (“SEC”) and have incorporated by reference, is accurate as of the date on the front cover of
this prospectus only, or when such document was filed with the SEC. Our business, financial condition, results of operations and
prospects may have changed since the relevant date.
Neither we, nor any
of our officers, directors, agents or representatives or underwriters, make any representation to you about the legality of an
investment. You should not interpret the contents of this prospectus, any prospectus supplement, or any free writing prospectus
to be legal, business, investment or tax advice. You should consult with your own advisors for that type of advice and consult
with them about the legal, tax, business, financial and other issues that you should consider before investing in our common stock.
We will not use this
prospectus to offer and sell securities unless it is accompanied by a prospectus supplement that more fully describes the terms
of the offering.
Solely for convenience,
tradenames referred to in this prospectus, the accompanying prospectus and the documents incorporated by reference may appear without
the ® or TM symbol, but those references are not intended to indicate, in any way, that we will not assert, to the fullest
extent under applicable law, our rights or that the applicable owner will not assert its rights, to these tradenames.
THIS PROSPECTUS
MAY NOT BE USED TO CONSUMMATE A SALE OF SECURITIES UNLESS IT IS ACCOMPANIED BY A PROSPECTUS SUPPLEMENT.
DESCRIPTION
OF CAPITAL STOCK
The following description
summarizes the material terms of Checkpoint capital stock as of the date of this registration statement. Because it is only a summary,
it does not contain all the information that may be important to you. For a complete description of our capital stock, you should
refer to our certificate of incorporation, our bylaws and to the provisions of applicable Delaware law.
Our common stock is
traded on The Nasdaq Capital Market, or the Exchange, under the symbol “CKPT.” The last reported sale price of our
common stock on November 25, 2020 was $2.42 per share.
The authorized capital
stock of Checkpoint consists of 95,000,000 shares of common stock, of which 7,000,000 shares have been designated as Class A
common stock. The description of our Class A Common Stock in this item is for information purposes only. All of the Class A
common stock has been issued to Fortress. Class A common stock is identical to common stock other than as to voting rights,
the election of directors for a definite period, and conversion rights. On any matter presented to our stockholders for their action
or consideration at any meeting of our stockholders (or by written consent of stockholders in lieu of meeting), each holder of
outstanding shares of Class A common stock will be entitled to cast for each share of Class A common stock held by such
holder as of the record date for determining stockholders entitled to vote on such matter, the number of votes that is equal to
one and one-tenth (1.1) times a fraction, the numerator of which is the sum of the shares of outstanding common stock and the denominator
of which is the number of shares of outstanding Class A common stock. Thus, the Class A common stock will at all times
constitute a voting majority. For a period of ten (10) years from the date of the first issuance of shares of Class A
common stock (the “Class A Director Period”), the holders of record of the shares of Class A common stock
(or other capital stock or securities issued upon conversion of or in exchange for the Class A common stock), exclusively
and as a separate class, will be entitled to appoint or elect the majority of the directors of Checkpoint (the “Class A
Directors”). Finally, each share of Class A common stock is convertible, at the option of the holder, into one fully
paid and nonassessable share of common stock (the “Conversion Ratio”), subject to certain adjustments.
If Checkpoint at any
time effects a subdivision of the outstanding common stock (or other capital stock or securities at the time issuable upon conversion
of the Class A common stock) by any stock split, stock dividend, recapitalization or otherwise, the applicable Conversion
Ratio in effect immediately before that subdivision will be proportionately decreased so that the number of shares of common stock
(or other capital stock or securities at the time issuable upon conversion of the Class A common stock) issuable on conversion
of each share of Class A common stock will be increased in proportion to such increase in the aggregate number of shares of
common stock (or other capital stock or securities at the time issuable upon conversion of the Class A common stock) outstanding.
If Checkpoint at any time combines the outstanding shares of common stock, the applicable Conversion Ratio in effect immediately
before the combination will be proportionately increased so that the number of shares of common stock (or other capital stock or
securities at the time issuable upon conversion of the Class A common stock) issuable on conversion of each share of Class A
common stock will be decreased in proportion to such decrease in the aggregate number of shares of common stock (or other capital
stock or securities at the time issuable upon conversion of the Class A common stock) outstanding. Additionally, if any reorganization,
recapitalization, reclassification, consolidation or merger involving Checkpoint occurs in which the common stock (but not the
Class A common stock) is converted into or exchanged for securities, cash or other property (other than a transaction involving
the subdivision or combination of the common stock), then, following any such reorganization, recapitalization, reclassification,
consolidation or merger, each share of Class A common stock becomes convertible into the kind and amount of securities, cash
or other property which such Class A Stockholder would have been entitled to receive had he or she converted the Class A
Shares immediately before said transaction. In such case, appropriate adjustment (as determined in good faith by the Board of Directors
of Checkpoint) will be made in the application of the provisions of Checkpoint’s Amended and Restated Certificate of Incorporation
relating the subdivision or combination of the common stock with respect to the rights and interests thereafter of the holders
of the Class A common stock, such that the provisions set forth in of Checkpoint’s Amended and Restated Certificate
of Incorporation relating to the subdivision or combination of the common stock (including the provisions with respect to changes
in and other adjustments of the applicable Conversion Ratio) will thereafter be applicable, as nearly as reasonably may be, in
relation to any securities or other property thereafter deliverable upon the conversion of the Class A common stock. Checkpoint
is not authorized to issue preferred stock.
Other features of our
common stock include:
| • | Dividend Rights. The holders of outstanding shares of our common stock, including Class A
common stock, are entitled to receive dividends out of funds legally available at the times and in the amounts that our board of
directors may determine. All dividends are non-cumulative. |
| • | Voting Rights. The holders of our common stock are entitled to one vote for each share of
common stock held on all matters submitted to a vote of the stockholders, including the election of directors, except as to the
Class A Directors during the Class A Director Period. Our certificate of incorporation and bylaws do not provide for
cumulative voting rights. |
| • | No Preemptive or Similar Rights. The holders of our common stock have no preemptive, conversion,
or subscription rights, and there are no redemption or sinking fund provisions applicable to our common stock. |
| • | Right to Receive Liquidation Distributions. Upon our liquidation, dissolution, or winding-up,
the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common
stock, including Class A common stock, outstanding at that time after payment of other claims of creditors, if any. |
| • | Fully Paid and Non-Assessable. All of the outstanding shares of our common stock, including
Class A common stock, are, and the shares of our common stock to be issued pursuant to this offering will be, duly issued,
fully paid and non-assessable. |
DESCRIPTION
OF WARRANTS
We may issue warrants
to purchase shares of our common stock in one or more series together with other securities or separately, as described in each
applicable prospectus supplement.
The prospectus supplement
relating to any warrants we offer will include specific terms relating to the offering. These terms will include some or all of
the following:
| • | the title of the warrants; |
| • | the aggregate number of warrants offered; |
| • | the designation, number and terms of the shares of common stock purchasable upon exercise of the
warrants and procedures by which those numbers may be adjusted; |
| • | the exercise price of the warrants; |
| • | the dates or periods during which the warrants are exercisable; |
| • | the designation and terms of any securities with which the warrants are issued; |
| • | if the warrants are issued as a unit with another security, the date on and after which the warrants
and the other security will be separately transferable; |
| • | if the exercise price is not payable in U.S. dollars, the foreign currency, currency unit or composite
currency in which the exercise price is denominated; |
| • | any minimum or maximum amount of warrants that may be exercised at any one time; |
| • | any terms relating to the modification of the warrants; |
| • | any terms, procedures and limitations relating to the transferability, exchange or exercise of
the warrants; and |
| • | any other specific terms of the warrants. |
DESCRIPTION
OF DEBT SECURITIES
We may offer debt securities
which may be senior, subordinated or junior subordinated and may be convertible. Unless otherwise specified in the applicable prospectus
supplement, our debt securities will be issued in one or more series under an indenture to be entered into between us and a trustee.
We will issue the debt securities offered by this prospectus and any accompanying prospectus supplement under an indenture to be
entered into between us and the trustee identified in the applicable prospectus supplement. The terms of the debt securities will
include those stated in the indenture and those made part of the indenture by reference to the Trust Indenture Act of 1939, as
in effect on the date of the indenture. We have filed a copy of the form of indenture as an exhibit to the registration statement
in which this prospectus is included. The indenture will be subject to and governed by the terms of the Trust Indenture Act of
1939.
The following description
briefly sets forth certain general terms and provisions of the debt securities that we may offer. The particular terms of the debt
securities offered by any prospectus supplement and the extent, if any, to which these general provisions may apply to the debt
securities, will be described in the related prospectus supplement. Accordingly, for a description of the terms of a particular
issue of debt securities, reference must be made to both the related prospectus supplement and to the following description.
Debt Securities
The aggregate principal
amount of debt securities that may be issued under the indenture is unlimited. The debt securities may be issued in one or more
series as may be authorized from time to time pursuant to a supplemental indenture entered into between us and the trustee or an
order delivered by us to the trustee. For each series of debt securities we offer, a prospectus supplement accompanying this prospectus
will describe the following terms and conditions of the series of debt securities that we are offering, to the extent applicable:
| • | title and aggregate principal amount; |
| • | whether the debt securities will be senior, subordinated or junior subordinated; |
| • | applicable subordination provisions, if any; |
| • | provisions regarding whether the debt securities will be convertible or exchangeable into other
securities or property of the Company or any other person; |
| • | percentage or percentages of principal amount at which the debt securities will be issued; |
| • | interest rate(s) or the method for determining the interest rate(s); |
| • | whether interest on the debt securities will be payable in cash or additional debt securities of
the same series; |
| • | dates on which interest will accrue or the method for determining dates on which interest will
accrue and dates on which interest will be payable; |
| • | whether the amount of payment of principal of, premium, if any, or interest on the debt securities
may be determined with reference to an index, formula or other method; |
| • | redemption, repurchase or early repayment provisions, including our obligation or right to redeem,
purchase or repay debt securities under a sinking fund, amortization or analogous provision; |
| • | if other than the debt securities’ principal amount, the portion of the principal amount
of the debt securities that will be payable upon declaration of acceleration of the maturity; |
| • | authorized denominations; |
| • | amount of discount or premium, if any, with which the debt securities will be issued, including
whether the debt securities will be issued as “original issue discount” securities; |
| • | the place or places where the principal of, premium, if any, and interest on the debt securities
will be payable; |
| • | where the debt securities may be presented for registration of transfer, exchange or conversion; |
| • | the place or places where notices and demands to or upon the Company in respect of the debt securities
may be made; |
| • | whether the debt securities will be issued in whole or in part in the form of one or more global
securities; |
| • | if the debt securities will be issued in whole or in part in the form of a book-entry security,
the depository or its nominee with respect to the debt securities and the circumstances under which the book-entry security may
be registered for transfer or exchange or authenticated and delivered in the name of a person other than the depository or its
nominee; |
| • | whether a temporary security is to be issued with respect to such series and whether any interest
payable prior to the issuance of definitive securities of the series will be credited to the account of the persons entitled thereto; |
| • | the terms upon which beneficial interests in a temporary global security may be exchanged in whole
or in part for beneficial interests in a definitive global security or for individual definitive securities; |
| • | the guarantors, if any, of the debt securities, and the extent of the guarantees and any additions
or changes to permit or facilitate guarantees of such debt securities; |
| • | any covenants applicable to the particular debt securities being issued; |
| • | any defaults and events of default applicable to the debt securities, including the remedies available
in connection therewith; |
| • | currency, currencies or currency units in which the purchase price for, the principal of and any
premium and any interest on, such debt securities will be payable; |
| • | time period within which, the manner in which and the terms and conditions upon which the Company
or the purchaser of the debt securities can select the payment currency; |
| • | securities exchange(s) on which the debt securities will be listed, if any; |
| • | whether any underwriter(s) will act as market maker(s) for the debt securities; |
| • | extent to which a secondary market for the debt securities is expected to develop; |
| • | provisions relating to defeasance; |
| • | provisions relating to satisfaction and discharge of the indenture; |
| • | any restrictions or conditions on the transferability of the debt securities; |
| • | provisions relating to the modification of the indenture both with and without the consent of holders
of debt securities issued under the indenture; |
| • | any addition or change in the provisions related to compensation and reimbursement of the trustee; |
| • | provisions, if any, granting special rights to holders upon the occurrence of specified events; |
| • | whether the debt securities will be secured or unsecured, and, if secured, the terms upon which
the debt securities will be secured and any other additions or changes relating to such security; and |
| • | any other terms of the debt securities that are not inconsistent with the provisions of the Trust
Indenture Act (but may modify, amend, supplement or delete any of the terms of the indenture with respect to such series of debt
securities). |
General
One or more series
of debt securities may be sold as “original issue discount” securities. These debt securities would be sold at a substantial
discount below their stated principal amount, bearing no interest or interest at a rate which at the time of issuance is below
market rates. One or more series of debt securities may be variable rate debt securities that may be exchanged for fixed rate debt
securities.
United States federal
income tax consequences and special considerations, if any, applicable to any such series will be described in the applicable prospectus
supplement.
Debt securities may
be issued where the amount of principal and/or interest payable is determined by reference to one or more currency exchange rates,
commodity prices, equity indices or other factors. Holders of such debt securities may receive a principal amount or a payment
of interest that is greater than or less than the amount of principal or interest otherwise payable on such dates, depending upon
the value of the applicable currencies, commodities, equity indices or other factors. Information as to the methods for determining
the amount of principal or interest, if any, payable on any date, the currencies, commodities, equity indices or other factors
to which the amount payable on such date is linked and certain additional United States federal income tax considerations will
be set forth in the applicable prospectus supplement.
The term “debt
securities” includes debt securities denominated in U.S. dollars or, if specified in the applicable prospectus supplement,
in any other freely transferable currency or units based on or relating to foreign currencies.
We expect most debt
securities to be issued in fully registered form without coupons and in denominations of $2,000 and any integral multiples thereof.
Subject to the limitations provided in the indenture and in the prospectus supplement, debt securities that are issued in registered
form may be transferred or exchanged at the principal corporate trust office of the trustee, without the payment of any service
charge, other than any tax or other governmental charge payable in connection therewith.
Global Securities
The debt securities
of a series may be issued in whole or in part in the form of one or more global securities that will be deposited with, or on behalf
of, a depositary identified in the prospectus supplement. Global securities will be issued in registered form and in either temporary
or definitive form. Unless and until it is exchanged in whole or in part for the individual debt securities, a global security
may not be transferred except as a whole by the depositary for such global security to a nominee of such depositary or by a nominee
of such depositary to such depositary or another nominee of such depositary or by such depositary or any such nominee to a successor
of such depositary or a nominee of such successor. The specific terms of the depositary arrangement with respect to any debt securities
of a series and the rights of and limitations upon owners of beneficial interests in a global security will be described in the
applicable prospectus supplement.
Governing Law
The indenture and the
debt securities shall be construed in accordance with and governed by the laws of the State of New York.
DESCRIPTION
OF UNITS
We may issue, in one
more series, units comprised of shares of our common stock, warrants to purchase common stock, debt securities or any combination
of those securities. Each unit will be issued so that the holder of the unit is also the holder of each security included in the
unit. Thus, the holder of a unit will have the rights and obligations of a holder of each included security. The unit agreement
under which a unit is issued may provide that the securities included in the unit may not be held or transferred separately, at
any time or at any time before a specified date.
We may evidence units
by unit certificates that we issue under a separate agreement. We may issue the units under a unit agreement between us and one
or more unit agents. If we elect to enter into a unit agreement with a unit agent, the unit agent will act solely as our agent
in connection with the units and will not assume any obligation or relationship of agency or trust for or with any registered holders
of units or beneficial owners of units. We will indicate the name and address and other information regarding the unit agent in
the applicable prospectus supplement relating to a particular series of units if we elect to use a unit agent.
We will describe in
the applicable prospectus supplement the terms of the series of units being offered, including:
| • | the designation and terms of the units and of the securities comprising the units, including whether
and under what circumstances those securities may be held or transferred separately; |
| • | any provisions of the governing unit agreement that differ from those described herein; and |
| • | any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the
securities comprising the units. |
The other provisions
regarding our common stock, warrants and debt securities as described in this section will apply to each unit to the extent such
unit consists of shares of our common stock, warrants and/or debt securities.
PLAN
OF DISTRIBUTION
We may sell the securities
covered in this prospectus in any of three ways (or in any combination):
| • | through underwriters or dealers; |
| • | directly to a limited number of purchasers or to a single purchaser; or |
Each time that we use
this prospectus to sell securities, we will also provide a prospectus supplement that contains the specific terms of the offering.
The prospectus supplement will set forth the terms of the offering of the securities, including:
| • | the name or names of any underwriters, dealers or agents and the amounts of any securities underwritten
or purchased by each of them; and |
| • | the public offering price of the common stock and the proceeds to us and any discounts, commissions
or concessions allowed or reallowed or paid to dealers. |
Any public offering
price and any discounts or concessions allowed or reallowed or paid to dealers may be changed from time to time.
If underwriters are
used in the sale of any securities, the securities will be acquired by the underwriters for their own account and may be resold
from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or at varying
prices determined at the time of sale. The securities may be either offered to the public through underwriting syndicates represented
by managing underwriters, or directly by underwriters. Generally, the underwriters’ obligations to purchase the securities
will be subject to certain conditions precedent. The underwriters will be obligated to purchase all of the securities if they purchase
any of securities.
We may sell the securities
through agents from time to time. The prospectus supplement will name any agent involved in the offer or sale of the securities
and any commissions we pay to them. Generally, any agent will be acting on a best efforts basis for the period of its appointment.
We may authorize underwriters,
dealers or agents to solicit offers by certain purchasers to purchase the securities from us at the public offering price set forth
in the prospectus supplement pursuant to delayed delivery contracts providing for payment and delivery on a specified date in the
future. The contracts will be subject only to those conditions set forth in the prospectus supplement, and the prospectus supplement
will set forth any commissions we pay for solicitation of these contracts.
Agents and underwriters
may be entitled to indemnification by us against certain civil liabilities, including liabilities under the Securities Act of 1933,
as amended, or to contribution with respect to payments which the agents or underwriters may be required to make in respect thereof.
Agents and underwriters may be customers of, engage in transactions with, or perform services for us in the ordinary course of
business.
We may enter into derivative
transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions.
If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell securities
covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party
may use securities pledged by us or borrowed from us or others to settle those sales or to close out any related open borrowings
of securities, and may use securities received from us in settlement of those derivatives to close out any related open borrowings
of securities. The third party in such sale transactions will be an underwriter and will be identified in the applicable prospectus
supplement (or a post-effective amendment).
LEGAL
MATTERS
Certain legal matters
will be passed upon for us by Alston & Bird LLP, New York, New York. Additional legal matters may be passed upon for us
or any underwriters, dealers or agents, by counsel that we will name in the applicable prospectus supplement.
EXPERTS
The financial statements as of December 31, 2019 and
2018 and for each of the two years in the period ended December 31, 2019 incorporated by reference in this Prospectus and in the
Registration Statement have been so incorporated in reliance on the report of BDO USA, LLP, an independent registered public accounting
firm, incorporated herein by reference, given on the authority of said firm as experts in auditing and accounting.
WHERE
YOU CAN FIND MORE INFORMATION
We have filed with
the SEC a registration statement on Form S-3 under the Securities Act with respect to the securities offered hereby. This
prospectus does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto.
For further information with respect to us and our securities, reference is made to the registration statement and the exhibits
and any schedules filed therewith. Statements contained in this prospectus as to the contents of any contract or other document
referred to are not necessarily complete and in each instance, if such contract or document is filed as an exhibit, reference is
made to the copy of such contract or other document filed as an exhibit to the registration statement, each statement being qualified
in all respects by such reference. The SEC maintains an internet site at www.sec.gov, from which interested persons can electronically
access the registration statement, including the exhibits and any schedules thereto.
We are subject to the
information reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we
file periodic reports and other information with the SEC. All documents filed with the SEC are available for inspection at the
internet addresses set forth above. We also maintain an internet site at www.checkpointtx.com. Our website and the information
contained therein or connected thereto shall not be deemed to be incorporated into this prospectus or the registration statement
of which it forms a part.
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to
“incorporate by reference” the information we file with them, which means that we can disclose important information
to you by referring you to those documents instead of having to repeat the information in this prospectus and accompanying prospectus
supplement. The information incorporated by reference is considered to be part of this prospectus and accompanying prospectus supplement,
and later information that we file with the SEC will automatically update and supersede this information. This prospectus incorporates
by reference the documents listed below (other than, unless otherwise specifically indicated, current reports furnished under Item
2.02 or Item 7.01 of Form 8-K and exhibits filed on such form that are related to such items):
| c) | Our Current Reports on Form 8-K filed with the SEC on March 11, 2020, April 21, 2020, May 6, 2020, June 4, 2020, August 5, 2020, two on September 17, 2020, September 21, 2020, October 7, 2020 and November 4, 2020; |
All reports and other
documents we subsequently file pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the termination
of this offering, including all such documents we may file with the SEC after the date of the initial registration statement and
prior to the effectiveness of the registration statement, but excluding any information furnished to, rather than filed with, the
SEC, will also be incorporated by reference into this prospectus and deemed to be part of this prospectus from the date of the
filing of such reports and documents.
950,000 Shares of Common Stock
Pre-Funded Warrants to Purchase up to 784,105
Shares of Common Stock
Common Warrants to Purchase up to 3,468,210
Shares of Common Stock
Placement Agent Warrants to Purchase up to 104,046
Shares of Common Stock
Shares of Common Stock Underlying the Pre-Funded
Warrants
Shares of Common Stock Underlying the
Common Warrants and Placement Agent Warrants
PROSPECTUS SUPPLEMENT
H.C. Wainwright & Co.
December 14, 2022
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