Aytu Prices Upcoming Public Offering at 13.2 Million

October 5, 2018
  • The company currently markets Natesto, the only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or "Low T")
  • Aytu also recently acquired rights to Zolpimist - an oral spray delivered form of sleep aid Ambien


Aytu BioScience, Inc. (NASDAQ: AYTU) announced on 10/5/18 the pricing of an underwritten public offering with expected total gross proceeds of $13.2 million, before deducting underwriting discounts, commissions and other offering expenses payable by the Company. The closing of the offering is expected to take place on or about October 9, 2018, subject to the satisfaction or waiver of customary closing conditions.

The securities offered by the Company consist of (i) an aggregate of 457,007 shares of its Common Stock, (ii) an aggregate of 8,342,993 shares of its Series C Convertible Preferred Stock convertible into an aggregate of 8,342,993 shares of Common Stock at a conversion price of $1.50 per share, and (iii) Warrants to purchase an aggregate of 8,800,000 shares of Common Stock at an exercise price of $1.50 per share. The securities will be issued at a public offering purchase price of $1.50 per fixed combination of (a) one share of Common Stock and one Warrant or (b) one share of Series C Preferred Stock and one Warrant. Each share of Series C Preferred Stock is convertible into one share of Common Stock. The Warrants will be exercisable upon issuance and will expire five years from the date of issuance. The conversion price of the Series C Preferred Stock in the offering as well as the exercise price of the Warrants are fixed and do not contain any variable pricing features or any price based anti-dilutive features.

The company currently markets Natesto, the only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or "Low T"). Additionally, Aytu is developing MiOXSYS, a novel, rapid semen analysis system with the potential to become a standard of care for the diagnosis and management of male infertility caused by oxidative stress. MiOXSYS is commercialized outside of the U.S. where it is a CE Marked, Health Canada cleared, Australian TGA approved, Mexican COFEPRAS approved product, and Aytu is planning U.S.-based clinical trials in pursuit of 510k de novo medical device clearance by the FDA. Aytu recently acquired exclusive U.S. and Canadian rights to ZolpiMist, an FDA-approved, commercial-stage prescription sleep aid indicated for the short-term treatment of insomnia characterized by difficulties with sleep initiation.



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