Full Press Release Details
Announces $15 Million Private Placement
Priced At-the-Market
NEW YORK, March 8, 2021/ PR Newswire/
Hoth Therapeutics, Inc. (NASDAQ: HOTH), a patient focused clinical stage biopharmaceutical
company, today announced that it has entered into a definitive agreement with certain institutional and accredited investors for
the issuance and sale of an aggregate of 7,594,937 shares of its common stock (or common stock equivalent in lieu thereof) and
warrants to purchase up to an aggregate of 7,594,937 shares of common stock, at a purchase price of $1.975 per share and
accompanying warrant in a private placement priced at-the-market under Nasdaq Rules. The
gross proceeds to the Company from the private placement are expected to be approximately $15 million. The private placement is
expected to close on or about March 10, 2021, subject to the satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as
the exclusive placement agent for the private placement.
The warrants will have an exercise price
$1.86 per share and exercise period commencing immediately upon issuance date and a term of three years.
The Company currently intends to use the
net proceeds from the private placement for further development of Hoth's product candidates and for working capital and
general corporate purposes.
The securities were offered in a private
placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated
thereunder and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities may not
be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from
the registration requirements of the 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 SEC covering the resale of the securities to be issued
to the investors in the private placement no later than 15 days after today and to use best efforts to have the registration statement
declared effective as promptly as practical thereafter, and in any event no later than 90 days after today in the event of a "full
This press release does not constitute
an offer to sell or the solicitation of an offer to buy the 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
Inc. is a clinical-stage biopharmaceutical company focused on developing new generation therapies for unmet medical needs. Hoth's
pipeline development is focused to improve the quality of life for patients suffering from indications including atopic dermatitis,
skin toxicities associated with cancer therapy, chronic wounds, psoriasis, asthma, acne, and pneumonia. Hoth has also entered into
two different agreements to further the development of two therapeutic prospects to prevent or treat COVID-19. To learn more,
please visit www.hoththerapeutics.com.
statements are subject to a number of risks and uncertainties, including, but not limited to market and other conditions, 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,
This press release includes forward-looking statements based upon Hoth's current expectations which may constitute forward-looking
statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 and other
federal securities laws, and are subject to substantial risks, uncertainties and assumptions, including, but not limited to market
and other conditions, the completion of the private placement, the satisfaction of customary closing conditions related to the
private placement. These statements concern the intended use of net proceeds from the private placement, Hoth's business strategies;
the timing of regulatory submissions; the ability to obtain and maintain regulatory approval of existing product candidates and
any other product candidates we may develop, and the labeling under any approval we may obtain; the timing and costs of clinical
trials, the timing and costs of other expenses; market acceptance of our products; the ultimate impact of the current Coronavirus
pandemic, or any other health epidemic, on our business, our clinical trials, our research programs, healthcare systems or the
global economy as a whole; our intellectual property; our reliance on third party organizations; our competitive position; our
industry environment; our anticipated financial and operating results, including anticipated sources of revenues; our assumptions
regarding the size of the available market, benefits of our products, product pricing, timing of product launches; management's
expectation with respect to future acquisitions; statements regarding our goals, intentions, plans and expectations, including
the introduction of new products and markets; and our cash needs and financing plans. There are a number of factors that could
cause actual events to differ materially from those indicated by such forward-looking statements. You should not place reliance
on these forward-looking statements, which include words such as "could," "believe," "anticipate,"
"intend," "estimate," "expect," "may," "continue," "predict," "potential,"
"project" or similar terms, variations of such terms or the negative of those terms. Although the Company believes that
the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee such outcomes. Hoth may
not realize its expectations, and its beliefs may not prove correct. Actual results may differ materially from those indicated
by these forward-looking statements as a result of various important factors, including, without limitation, market conditions
and the factors described in the section entitled "Risk Factors" in Hoth's most recent Annual Report on Form 10-K and
Hoth's other filings made with the U. S. Securities and Exchange Commission. All such statements speak only as of the date made.
Consequently, forward-looking statements should be regarded solely as Hoth's current plans, estimates, and beliefs. Investors should
not place undue reliance on forward-looking statements. Hoth cannot guarantee future results, events, levels of activity, performance
or achievements. Hoth does not undertake and specifically declines any obligation to update, republish, or revise any forward-looking
statements to reflect new information, future events or circumstances or to reflect the occurrences of unanticipated events, except
as may be required by applicable law.
Phone: (678) 570-6791