CRANFORD, N.J., Jan. 25, 2021 /PRNewswire/ -- Citius
Pharmaceuticals, Inc. ("Citius" or the "Company") (Nasdaq: CTXR), a
specialty pharmaceutical company focused on developing and
commercializing critical care drug products, today announced that
it has entered into securities purchase agreements with certain
institutional and accredited investors to raise approximately
$20.0 million through the issuance of
an aggregate 15,455,960 shares of its common stock and warrants to
purchase up to an aggregate of 7,727,980 shares of common stock, at
a purchase price of $1.294 per share
of common stock and associated warrant in a private placement
priced at-the-market under Nasdaq rules. The closing of the private
placement is expected to occur on or about January 27, 2021, subject to the satisfaction of
customary closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement
agent for the offering.
The warrants have an exercise price of $1.231 per share, are exercisable immediately and
have a term of five and one-half years.
The Company currently intends to use the net proceeds from the
offering for general corporate purposes, including
pre-clinical and clinical development of our product candidates and
working capital and capital expenditures.
The offer and sale of the foregoing securities are being made in
a transaction not involving a public offering and have not been
registered under the Securities Act of 1933, as amended (the
"Securities Act"), or applicable state securities laws.
Accordingly, the securities may not be reoffered or resold in
the United States except pursuant
to an effective registration statement or an applicable exemption
from the registration requirements of the Securities Act and such
applicable state securities laws.
Under an agreement with the investors, the Company is required
to file an initial registration statement with the Securities and
Exchange Commission covering the resale of the shares of common
stock to be issued to the investors within five calendar days and
to use its best efforts to have the registration statement declared
effective as promptly as practical thereafter, and in any event no
later than 75 days after today in the event of a "full review" by
the Securities and Exchange Commission.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state.
About Citius Pharmaceuticals, Inc.
Citius is a late-stage specialty pharmaceutical company
dedicated to the development and commercialization of critical care
products, with a focus on anti-infectives and cancer care. For more
information, please visit www.citiuspharma.com.
Forward Looking Statements
This press release may contain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements
are made based on our expectations and beliefs concerning future
events impacting Citius. You can identify these statements by the
fact that they use words such as "will," "anticipate," "estimate,"
"expect," "should," and "may" and other words and terms of similar
meaning or use of future dates. Forward-looking statements are
based on management's current expectations and are subject to risks
and uncertainties that could negatively affect our business,
operating results, financial condition and stock price, and
includes all statements related to the completion of the private
placement, the satisfaction of customary closing conditions related
to the private placement and the intended use of net proceeds from
the private placement. Factors that could cause actual
results to differ materially from those currently anticipated are:
market and other conditions; our ability to successfully undertake
and complete clinical trials and the results from those trials for
our product candidates; our need for substantial additional funds;
risks relating to the results of research and development
activities; uncertainties relating to preclinical and clinical
testing; the early stage of products under development; the
estimated markets for our product candidates and the acceptance
thereof by any market; risks related to our growth strategy; patent
and intellectual property matters, market and other conditions; our
ability to attract, integrate, and retain key personnel; our
ability to obtain, perform under and maintain financing and
strategic agreements and relationships; our ability to identify,
acquire, close and integrate product candidates and companies
successfully and on a timely basis; our dependence on third-party
suppliers; government regulation; competition; as well as other
risks described in our SEC filings. We expressly disclaim any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in our expectations or any changes in events,
conditions or circumstances on which any such statement is based,
except as required by law.
Contact:
Andrew Scott
Vice President, Corporate Development
(O) 908-967-6677 x105
ascott@citiuspharma.com
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SOURCE Citius Pharmaceuticals, Inc.