TMCnet News
AzurRx BioPharma Announces Closing of $6.9 Million Private PlacementNEW YORK, Jan. 13, 2020 (GLOBE NEWSWIRE) -- AzurRx BioPharma, Inc. (NASDAQ:AZRX) (“AzurRx” or the “Company”), a company specializing in the development of non-systemic, recombinant therapies for gastrointestinal diseases, today announced the closing of a private placement financing (the “Offering”) resulting in gross proceeds of approximately $6.9 million from certain accredited investors. Alexander Capital, LP acted as sole placement agent in the Offering. Net proceeds from the Offering will be used to eliminate short- and long-term indebtedness, and for general working capital purposes, including product development. James Sapirstein, the President and CEO of AzurRx, said “We are very grateful for the continued support of our investors. This financing allows us to achieve our short-term goals and continue the development of our MS1819 program for the treatment of exocrine pancreatic insufficiency in cystic fibrosis and chronic pancreatitis patients.” The Offering consisted of Senior Convertible Promissory Notes (the “Notes”) and warrants (the “Warrants”) to purchase shares of the Company’s common stock (the “Common Stock”). The Notes mature on September 30, 2020, accrue interest at a rate of 9% per annum, and are convertible into Common Stock at $0.97 per share (the “Conversion Shares”). Warrants were issued to the investors in an amount equal to 50% of the number of Conversion Shares. The Warrants have an exercise price of $1.07 per share and expire three years from the date of issuance. In aggregate, the Company issued $6,904,000 principal amount of Notes convertible into 7,117,559 Conversion Shares and Warrants to purchase up to 3,558,795 shares of Common Stock to the investors in the Offering. For more detailed information on the Offering, please see the Company’s Current Report of Form 8-K to be filed with the Securities and Exchange Commission (SEC) on or about the date hereof. The securities 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 offred or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. AzurRx has agreed to file one or more registration statements with the SEC registering the resale of the Conversion Shares issuable upon conversion of the Notes and the shares of Common Stock issuable upon exercise of the Warrants purchased in the Offering. This press release shall not constitute an offer to sell or the 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. About AzurRx BioPharma, Inc. Forward-Looking Statements: For more information: Investor Relations contact: |