Jaguar Animal Health (JAGX) Enters $1M Common Stock, Warrants Private Placement

November 23, 2016 9:02 AM EST
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Jaguar Animal Health, Inc. (Nasdaq: JAGX) announced that it has entered into a definitive agreement to sell securities to certain institutional investors in a private placement for aggregate gross proceeds of approximately $1.0 million before deducting offering expenses payable by Jaguar. The closing is expected to occur on or about November 29, 2016 and is subject to satisfaction of customary closing conditions.

Under the terms of the offering, Jaguar will sell an aggregate of 1,666,668 shares (the “Shares”) of its common stock, par value $0.0001 (the “Common Stock”), at a price of $0.60 per share. The purchasers will also receive (i) warrants to purchase up to an aggregate of 1,666,668 shares of Common Stock at an exercise price of $0.75 per share (the “Series A Warrants”), (ii) warrants to purchase up to an aggregate of 1,666,668 shares of Common Stock at an exercise price of $0.90 per share (the “Series B Warrants”), and (iii) warrants to purchase up to an aggregate of 1,666,668 shares of Common Stock at an exercise price of $1.00 per share (the “Series C Warrants” and collectively with the Series A Warrants and the Series B Warrants, the “Warrants”). The Warrants are not exercisable until 6 months after the date of the closing. From that initial exercisable date, the Series A Warrants will have a term of 5 years, the Series B Warrants will have a term of 6 months, and the Series C Warrants will have a term of 1 year. The potential gross proceeds from the Warrants, if fully exercised on a cash basis, will be approximately $4.4 million.

The Company intends to use the proceeds from the private placement for working capital and general corporate purposes.

Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, acted as the exclusive placement agent for the offering.



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