Full Press Release Details
Therapeutics Announces $20 Million Common Stock Purchase Agreement with Institutional Investor, Lincoln Park Capital Fund
City, N.Y., and Rehovot, Israel, August 13, 2018 - AIT Therapeutics, Inc. (OTC:AITB)
("AIT Therapeutics or the "Company"), a clinical-stage medical device and biopharmaceutical company focused
on developing inhaled Nitric Oxide (NO) for the treatment of patients with respiratory conditions including serious lung infections
and pulmonary hypertension, announced today that it has entered into a common stock purchase agreement and registration
rights agreement (together, the "Agreements") with Lincoln Park Capital Fund, LLC ("LPC"), a Chicago-based
institutional investor. According to the terms of the Agreements the Company may, prior to filing a registration statement, elect
to sell up to $526,500 worth of common stock to LPC at $4.50 per share and thereafter, pursuant to an effective registration statement,
AIT Therapeutics will have the right at its sole discretion to sell to LPC the balance of up to $20.0 million worth of shares
over a 36-month period. AIT Therapeutics will control the timing of any future investment and LPC will be obligated to make purchases
in accordance with the Agreements. Proceeds will be used for the ongoing development of the NO generator and delivery system
for use with a breathing mask and ventilators, as well as preparation for pivotal studies in bronchiolitis and nontuberculous
mycobacteria (NTM) lung infections.
availability of funds from LPC through these Agreements provides AIT with additional means to help in meeting our stated timelines
for our three programs," said Steven Lisi, Chairman and Chief Executive Officer of AIT Therapeutics. "With an expected
FDA 510(k) submission for our ventilator compatible system in early calendar 2019 and the potential start of pivotal studies in
both bronchiolitis and NTM in late calendar 2019, we will get closer to our goal of providing significant benefits to patients
and reward our shareholders."
Company may elect to make the initial sale at a fixed $4.50 per share, however thereafter there are no upper limits to the price
per share LPC may pay to purchase the remaining common stock subject to the Agreement and the purchase price of the shares will
be based on the then prevailing market prices of the Company's shares at the time of each sale to LPC. No warrants, derivatives,
financial or business covenants are associated with the Agreements and LPC has agreed not to cause or engage in any manner whatsoever,
in any direct or indirect short selling or hedging of shares of the Company's common stock. In consideration for entering
into the Agreements and committing to fund up to $20.0 million, AIT Therapeutics paid LPC $500,000 as a cash commitment fee. The
Agreements may be terminated by the Company at any time, at its sole discretion, without any cost or penalty.
more detailed description of the Agreements is set forth in AIT Therapeutics Current Report on Form 8-K as filed with the SEC.
press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor will
there be any sale of these securities in any jurisdiction in which such offer solicitation or sale are unlawful prior to registration
or qualification under securities laws of any such jurisdiction.
AIT Therapeutics, Inc.
Therapeutics Inc. is a clinical-stage medical device and biopharmaceutical company using nitric oxide (NO) to treat respiratory
and other diseases. The Company is currently applying its therapeutic expertise to treat lower respiratory tract infections
that are not effectively addressed with current standards of care, as well as pulmonary hypertension, in various settings. AIT
Therapeutics is currently advancing its revolutionary NO Generator and Delivery System in clinical trials for the treatment of
bronchiolitis and severe lung infections such as nontuberculous mycobacteria (NTM). For more information, visit www.AIT-Pharm.com.
Lincoln Park Capital Fund, LLC.
is an institutional investor headquartered in Chicago, Illinois. LPC's experienced professionals manage a portfolio of investments
in public and private entities. These investments are in a wide range of companies and industries emphasizing life sciences, specialty
financing, energy and technology. LPC's investments range from multiyear financial commitments to fund growth to special
situation financings to long-term strategic capital offering companies certainty, flexibility and consistency. For more information,
visit www.lpcfunds.com.
press release contains "forward-looking statements." Forward-looking statements include statements about our expectations,
beliefs, or intentions regarding our product offerings, business, financial condition, results of operations, strategies or prospects.
You can identify such forward-looking statements by the words "expects," "intends," "plans,"
"projects," "believes," "estimates," "likely," "goal," "assumes,"
"targets" and similar expressions and/or the use of future tense or conditional constructions (such as "will,"
"may," "could," "should" and the like) and by the fact that these statements do not relate
strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities,
trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred,
these statements are inherently subject to risks and uncertainties that could cause our actual results to differ materially from
any future results expressed or implied by the forward-looking statements. These forward-looking statements are only predictions
and reflect our views as of the date they are made with respect to future events and financial performance. Many factors could
cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements,
including risks related to: our approach to discover and develop novel drugs, which is unproven and may never lead to marketable
products; our ability to fund and the results of further pre-clinical and clinical trials; obtaining, maintaining and protecting
intellectual property utilized by our products; our ability to enforce our patents against infringers and to defend our patent
portfolio against challenges from third parties; our ability to obtain additional funding to support our business activities;
our dependence on third parties for development, manufacture, marketing, sales, and distribution of products; the successful development
of our product candidates, all of which are in early stages of development; obtaining regulatory approval for products; competition
from others using technology similar to ours and others developing products for similar uses; our dependence on collaborators;
and our short operating history. We undertake no obligation to update, and we do not have a policy of updating or revising, these
forward-looking statements, except as required by applicable law.
Lisi, Chief Executive Officer