Business
Aytu BioPharma Announces Pricing of $4.0 Million Public Offering Priced At-The-Market and the Appointment of a New Director
Abhinav Jain of Nantahala Capital Management, LLC Joins the Company's Board of Directors Upon ClosingPotential for Additional $7 Million in Event of Exercise
About this update from Aytu Biopharma, Inc.
[{"type":"text","content":"Abhinav Jain of Nantahala Capital Management, LLC Joins the Company's Board of Directors Upon ClosingPotential for Additional $7 Million in Event of Exercise of Common Warrants in FullExtends Interest Only Period on Avenue Capital Term Loan Through January 2025 Maturity DateENGLEWOOD, CO / ACCESSWIRE / June 9, 2023 / Aytu BioPharma, Inc. (NASDAQ:AYTU), a pharmaceutical company focused on developing and commercializing novel therapeutics, today announced the pricing of its equity offering co-led by Nantahala Capital Management and Stonepine Capital Management with participation by Armistice Capital of (i) 1,743,695 shares of its common stock, and, in lieu of common stock to certain investors that so chose, pre-funded warrants to purchase 430,217 shares of its common stock (\"Pre-Funded Warrants\"), and (ii) accompanying Tranche A and Tranche B warrants (the \"Common Warrants\") to purchase 4,347,824 shares of its common stock priced at-the-market under Nasdaq rules (the \"Offering\").Gross proceeds, before deducting placement agent fees and other offering expenses, are expected to be approximately $4.0 million (assuming no exercise of the Common Warrants). The Offering is expected to close on June 13, 2023, subject to customary closing conditions.The Company anticipates that the closing of the Offering will extend the interest only period on the Company's $15 million senior secured loan facility with Avenue Venture Opportunities Fund, L.P. (the \"Avenue Note\") through its maturity date in January 2025.Following and in connection with the closing of the Offering, Abhinav \"Abi\" Jain from Nantahala Capital Management is joining the Company's Board of Directors.\"We are pleased to have priced this offering with these fundamental, healthcare-oriented institutional investors and look forward to having Abi join the Company's board of directors,\" stated Aytu Chief Executive Officer Josh Disbrow. \"With the momentum we're experiencing in the Rx Segment and our continued operational improvements, this additional capital enables us to advance the Company's growth and accelerate expense reduction initiatives and is expected to bridge the Company to profitability. Our strategic mandate is to focus on the most profitable aspects of our business. Going forward we will accentuate our Rx Segment and de-emphasize our Consumer Health Segment wi...