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Hoth Therapeutics Completes Closing of Previously Announced $15.0 Million Private Placement Priced At-the-Market Under Nasdaq Rules
Hoth's Largest Shareholder Agrees to One Year Lockup NEW YORK, March 10, 2021 /PRNewswire/ -- Hoth Therapeutics, Inc. (NASDAQ: HOTH), a patient focused
About this update from Hoth Therapeutics, Inc.
[{"type":"text","content":"Hoth's Largest Shareholder Agrees to One Year Lockup\n\n\nNEW YORK, March 10, 2021 /PRNewswire/ -- Hoth Therapeutics, Inc. (NASDAQ: HOTH), a patient focused clinical stage biopharmaceutical company, today announced the closing of its previously announced private placement of common stock and warrants to purchase shares of common stock priced at-the-market under Nasdaq rules, resulting in gross proceeds to the Company of $15.0 million. The Company sold and issued an aggregate of 7,594,937 shares of its common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to an aggregate of 7,594,937 shares of common stock in the private placement, at a purchase price of $1.975 per share of common stock and associated warrant. The warrants have an exercise price of $1.86 per share, are exercisable immediately and have a term of three years.\n\n \n \n \n \n \n \n\n \nAs part of the transaction, Hoth's largest shareholder has agreed to extend its lockup for one year from the date of the private placement.\nH.C. Wainwright & Co. acted as the exclusive placement agent for the offering.\nSheppard, Mullin, Richter & Hampton LLP acted as counsel to the Company and Haynes and Boone LLP acted as counsel to the placement agent in connection with the offering.\nThe Company intends to use the net proceeds from the private placement for further development of its product candidates and for working capital and general corporate purposes.\nThe offer and sale of the foregoing securities were made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the \"Securities Act\"), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.\nUnder an agreement with the investors, the Company is required to file an initial registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock to be issued to the investors within fifteen calendar days and to use its best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no lat...