Tonix Pharmaceuticals (TNXP) Prices 9.5M Share, Warrant Offering at $0.55 Per Unit

October 26, 2016 8:47 AM EDT

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Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP) announced the pricing of an underwritten public offering of 9,500,000 units, consisting of 9,500,000 shares of common, and warrants to purchase an aggregate of 4,750,000 shares of common stock, at an offering price of $0.55 per unit. The warrants have an exercise price of $0.63 per share and are exercisable for a period of five years. Tonix has also granted to the underwriters a 45-day option to acquire an additional 1,425,000 shares of common stock, and warrants to purchase up to an aggregate of 712,500 shares of common stock to cover over-allotments in connection with the offering.

The gross proceeds to Tonix from this offering are approximately $5.2 million before deducting the underwriting discount and estimated offering expenses payable by the company, assuming no exercise of the overallotment option. The offering is expected to close on or about October 31, 2016, subject to customary closing conditions.

Dawson James Securities, Inc. is acting as the sole book-running manager for the offering. Tonix expects to use the net proceeds of the offering to support the continued development of TNX-102 SL (cyclobenzaprine HCl sublingual tablets) for the treatment of posttraumatic stress disorder (PTSD), including completion of the first interim analysis in the phase 3 study in military-related PTSD, to further develop other pipeline programs, for working capital and other general corporate purposes, and possibly acquisitions of other companies, products or technologies, though no such acquisitions are currently contemplated.



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