Applied Therapeutics Inc. (APLT) Announces $30 Million Private Placement of Equity

Applied Therapeutics, Inc. (NASDAQ: APLT) (the “Company”), a clinical-stage biopharmaceutical company developing a pipeline of novel drug candidates against validated molecular targets in indications of high unmet medical need, today announced it has entered into a definitive securities purchase agreement, dated as of April 23 2023, for the sale of 9,735,731 shares of the Company’s common stock, par value $0.0001 per share at a purchase price of $0.946 per share (the “Shares”) and 22,000,000 pre-funded warrants to purchase common stock at a purchase price of $0.945, which equal the purchase price per share of common stock less the $0.001 per share exercise price of each pre-funded warrant (the “Pre-Funded Warrants” and together with the Shares the “Securities”), in a private placement (the “Private Placement”). The Private Placement was led by new investor Venrock Healthcare Capital Partners and is expected to result in gross proceeds to the Company of approximately $30 million, before deducting placement agent commissions and other offering expenses.

The Private Placement is expected to close on or about April 26, 2023, subject to the satisfaction of customary closing conditions. Additional details regarding the Private Placement will be included in a Form 8-K to be filed by the Company with the Securities and Exchange Commission (“SEC”).

The Company intends to use the net proceeds to fund research and development and registration of its pipeline candidates, and for working capital and general corporate purposes. The capital raised in the Private Placement, in addition to current cash and potential milestones expected from the Advanz European licensing partnership, are expected to fund the business through the middle of 2024.

SVB Securities and UBS Investment Bank acted as placement agents in the transaction (the “Placement Agents”). Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel for the Company.

The Securities being sold in the Private Placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC covering the resale of the Shares and the shares underlying the Pre-Funded Warrants issuable in connection with the Private Placement.

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