Aytu BioScience (AYTU) Prices $8.6M Common Stock, Warrants Offering

October 28, 2016 9:02 AM EDT

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Aytu BioScience, Inc. (OTC: AYTU) announced that it has priced an underwritten public offering of 5,735,000 shares of its common stock and warrants to purchase up to an aggregate of 5,735,000 shares of its common stock at a combined public offering price of $1.50 per share and related warrant. The gross proceeds from the offering to Aytu are expected to be approximately $8.6 million, before deducting the underwriting discount and estimated offering expenses payable by Aytu, but excluding the exercise of any warrants. The company also has granted the representative of the underwriters a 45-day option to purchase up to an additional 860,250 shares and/or 860,250 additional warrants.

The shares of common stock will be immediately separable from the warrants and will be issued separately. The warrants are exercisable immediately upon issuance, expire five years after the date of issuance and have an exercise price of $1.86 per share. The warrants are expected to begin trading on the OTCQX Marketplace, operated by OTC Markets Group, under the symbol "AYTUZ" on or about October 28, 2016. The offering is expected to close on November 2, 2016, subject to satisfaction of customary closing conditions.

Joseph Gunnar & Co., LLC and Feltl and Company are acting as joint book-running managers for the offering and Fordham Financial Management, Inc. is acting as lead manager for the offering.

The company intends to use the net proceeds from the offering to fund the final upfront payment to Acerus under the license and supply agreement entered into on April 22, 2016 to acquire Natesto; further commercialization of Natesto, ProstaScint and Primsol; to purchase complementary urology products and/or product candidates that will enhance its product portfolio and enable expansion of its commercial operations; fund the remaining clinical development activities for MiOXSYS to enable FDA clearance; and working capital for general corporate and administrative expenses.

The securities described above are being offered by Aytu pursuant to a registration statement on Form S-1 (File No. 333-213738), as amended, previously filed with the Securities and Exchange Commission. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering. The offering may be made only by means of a prospectus. The preliminary prospectus related to the offering has been filed with the SEC and a final prospectus related to the offering will be filed with the SEC on or about October 28, 2016. Copies of the final prospectus, when available, are on the SEC's website located at http://www.sec.gov and may also be obtained from Joseph Gunnar & Co, LLC, Prospectus Department, 30 Broad Street, 11th Floor, New York, NY 10004, telephone 212-440-9600, email: prospectus@jgunnar.com or Feltl and Company at prospectus@feltl.com.



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