Satsuma Pharmaceuticals Inc. (STSA) Announces $80 Million Private Placement Financing

Satsuma Pharmaceuticals, Inc. (Nasdaq: STSA) a clinical-stage biopharmaceutical company, today announced that it has agreed to sell 14,084,507 shares of its common stock to certain institutional investors in a private investment in public equity (PIPE) financing. The Company anticipates gross proceeds from the PIPE will be approximately $80 million, before deducting fees to the placement agents and other estimated offering expense payable by the Company, based on the offering price of $5.68 per share, the last reported sale price of our common stock on The Nasdaq Global Market on February 26, 2021. The financing was led by Commodore Capital and New Enterprise Associates, L.P. with participation from new and existing investors including RA Capital Management, Vivo Capital, Samlyn Capital, Surveyor Capital (a Citadel company), Aspire Capital Fund, funds managed by Ghost Tree Capital Group, LP, Point72 Asset Management and Logos Capital as well as Satsuma co-founder, Shin Nippon Biomedical Laboratories, Ltd.

The financing is subject to standard closing conditions and the Company anticipates the closing to occur on March 3, 2021. In addition the financing was executed in compliance with applicable Nasdaq rules and priced at the “Minimum Price” (as defined in the Nasdaq rules).

SVB Leerink served as Satsuma's exclusive financial advisor in connection with the PIPE financing.

“We are pleased to have the continued support of leading healthcare investors as we continue Phase 3 clinical development of STS101 as outlined in our separate press release also announced today,” said John Kollins, President & Chief Executive Officer of Satsuma. “We believe there is a compelling rationale for continuing development of STS101, and the proceeds from this financing better position us to deliver this potential migraine treatment to market.”

The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Satsuma has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issued in these private placements.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

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