Full Press Release Details
Aytu BioScience Announces $10 Million Private
Capital and Altium Capital jointly participated in
ENGLEWOOD, CO / ACCESSWIRE / October 14, 2019 / Aytu
BioScience, Inc. (NASDAQ: AYTU), a specialty pharmaceutical company
focused on global commercialization of novel products addressing
significant medical needs, is pleased to announce that it has
entered into definitive agreements with two institutional investors
for the purchase and sale in a private placement of $10 Million of
Series F Convertible Preferred Stock and warrants to purchase
common stock. Institutional investors Altium Capital and Armistice
Capital jointly participated in the financing.
Capital is a global, long/short, value-oriented and event-driven
hedge fund focused primarily on the health care and consumer
sectors with over $1 billion in assets. Armistice invests
predominantly in equities and seeks to maximize the opportunity set
of investment candidates allowing for the selection of unique,
concentrated bets to generate uncorrelated investment returns.
Steven Boyd, Chief Investment Officer, founded Armistice Capital in
2012. Mr. Boyd is a member of the Board of Directors of Aytu
Capital is a private investment fund founded by CEO Jacob Gottlieb.
Through deep, fundamental research, Altium's team of doctors,
scientists and investment professionals seeks to identify growth
and development stage public companies with disruptive science and
technology. Altium frequently partners with portfolio companies as
they raise capital to fund the next stage of
the closing of this offering, the Company's pro forma cash
balance as of September 30, 2019 would have been approximately
The stock purchase agreement
includes the purchase of shares of convertible preferred stock that
will be sold at a purchase price of $1,000 per share and
convertible into 1,000 shares of common stock at $1 per share, and
accompanying warrants to purchase up to one share of common stock
for each share of common stock convertible from the preferred
stock, with an exercise price of $1.25 per share and exercisable
following shareholder approval. The private placement is expected
to result in total gross proceeds of $10 million. The warrants will
have a term of exercise expiring five years from the effective
Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann
Financial Services Inc. (NYSE American: LTS), acted as the
exclusive placement agent in connection with the
preferred stock, the common stock convertible from the preferred
stock, the accompanying warrants and the common stock issuable upon
exercise of the warrants will not be registered under the
Securities Act of 1933, as amended (the Securities
Act ) or any state securities laws and, unless so registered,
may not be offered or sold in the United States except pursuant to
an applicable exemption from the registration requirements of the
Securities Act and applicable state securities laws. The securities
will be offered only to institutional accredited investors in
accordance with Section 4(a)(2) under the Securities Act and Rule
506(b) promulgated thereunder.
About Aytu BioScience, Inc.
BioScience is a commercial-stage specialty pharmaceutical company
focused on global commercialization of novel products addressing
significant medical needs. The company currently markets
Natesto , the only FDA-approved nasal formulation of
testosterone for men with hypogonadism (low testosterone, or "Low
T"). Aytu also has exclusive U.S. and Canadian rights to
ZolpiMist , an FDA-approved, commercial-stage prescription
sleep aid indicated for the short-term treatment of insomnia
characterized by difficulties with sleep initiation. Aytu recently
acquired exclusive U.S. commercial rights to Tuzistra XR, the
only FDA-approved 12-hour codeine-based antitussive syrup. Tuzistra
XR is a prescription antitussive consisting of codeine polistirex
and chlorpheniramine polistirex in an extended-release oral
suspension. Additionally, Aytu is developing MiOXSYS , a
novel, rapid semen analysis system with the potential to become a
standard of care for the diagnosis and management of male
infertility caused by oxidative stress. MiOXSYS is commercialized
outside of the U.S. where it is a CE Marked, Health Canada cleared,
Australian TGA approved, Mexican COFEPRAS approved product, and
Aytu is planning U.S.-based clinical trials in pursuit of 510k de
novo medical device clearance by the FDA. Aytu's strategy is to
continue building its portfolio of revenue-generating products,
leveraging its focused commercial team and expertise to build
leading brands within large therapeutic markets. For more
information visit aytubio.com.
Forward-Looking Statements
press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, or the
Exchange Act. All statements other than statements of historical
facts contained in this presentation, are forward-looking
statements. Forward looking statements are generally written in the
future tense and/or are preceded by words such as ''may,''
''will,'' ''should,'' ''forecast,'' ''could,'' ''expect,''
''suggest,'' ''believe,'' ''estimate,'' ''continue,''
''anticipate,'' ''intend,'' ''plan,'' "prospects" or similar words,
or the negatives of such terms or other variations on such terms or
comparable terminology. These statements are just predictions and
are subject to risks and uncertainties that could cause the actual
events or results to differ materially. These risks and
uncertainties include, among others: risks relating to gaining
market acceptance of our products, obtaining reimbursement by
third-party payors, the potential future commercialization of our
product candidates, the anticipated start dates, durations and
completion dates, as well as the potential future results, of our
ongoing and future clinical trials, the anticipated designs of our
future clinical trials, anticipated future regulatory submissions
and events, our anticipated future cash position and future events