Seelos Therapeutics (SEEL) Raises $10 Million In Private Placement of Senior Secured Convertible Note

Seelos Therapeutics, Inc. (Nasdaq: SEEL), a clinical-stage biopharmaceutical company focused on the development of therapies for central nervous system disorders and rare diseases, today announced the sale of a $12.0 million senior secured convertible note (the "Note") and shares of Seelos common stock (the "Closing Shares") to investors (the "Investors"), including Lind Global Asset Management II, LLC, an investment fund managed by The Lind Partners, a New York based institutional fund manager and an existing investor in Seelos. Seelos received $10.0 million in gross proceeds.

Seelos intends to use the proceeds for general corporate purposes and to advance the development of its product candidates.

"This financial commitment from Lind enables us to continue to execute our plans of advancing Seelos' key programs, including the acute suicidal ideation and behavior trial for SLS-002," said Raj Mehra, Ph.D., Chairman and CEO of Seelos.

The following are some of the key features of the Note:

• 24-month maturity with a 0% coupon
• Repayment of principal in eighteen monthly cash payments beginning in June 2021 equal to the then-outstanding principal amount of the Note, divided by the number of months remaining until the Note's maturity date
• Starting six months after the date of issuance of the Note, convertible at the option of the Investors into shares of Seelos common stock at a fixed conversion price of $1.60 per share
• Seelos has the right to prepay without penalty (i) up to 662/3% of the outstanding principal amount of the Note prior to the six-month anniversary of the issuance date of the Note, and (ii) up to the outstanding principal amount of the Note on or after the seven-month anniversary of the issuance date of the Note, subject to an Investor's right to convert a portion of proposed prepayment amounts into Seelos common stock at $1.60 per share

"Lind is pleased to increase its investment in Seelos at such an important time in their development. Their intranasal Ketamine program, SLS-002, is being studied for acute suicidal ideation and behavior in patients with major depression," said Phillip Valliere, Managing Director at The Lind Partners. "It is a very timely and relevant asset to be developing and we look forward to tracking its progress. We have great confidence in Dr. Raj Mehra and the Seelos team and are thrilled to support their upcoming trials."

The Note and the Closing Shares 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, along with the shares of common stock underlying the Note, have not been registered under the Act or applicable state securities laws. Accordingly, the Note, the Closing Shares and the underlying shares of common stock 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.

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