Osmotica Pharmaceuticals plc (NASDAQ: OSMT) Enters a Note Purchase Agreement And Prices $35 Million Underwritten Offering

Osmotica Pharmaceuticals plc (NASDAQ: OSMT) has entered a note purchase agreement with Athyrium Capital Management-managed funds for around $100 million senior secured notes.

Financing offers more cash for Upneeq commercialization 

CEO Brian Markison said, “This financing provides the Company with additional cash to support the commercialization of Upneeq®.  We are excited to have Athyrium, a leading health care investor, as our financial partner.”

The deal is subject to customary closing conditions upon which Osmotic will issue around $55 million senior notes.  Osmotica will avail the other $20 million of senior notes at its option by October 2022 upon achievement of minimum revenues for Upneeq.  The remaining $25 million will be available to Osmotica at the discretion of Athyrium.

Athyrium Capital Management partner Mark Kavulich said, “We are thrilled to partner with the Osmotica team and to provide capital to support the commercial efforts around Upneeq. As a first-in-class treatment for acquired ptosis, Upneeq offers patients and clinicians a convenient non-surgical therapeutic option.”

Osmotica announces pricing of an underwritten public offering

Osmotica has also announced the pricing of an underwritten public offering to sell 14 million common shares of its stock and warrants to buy around 14 million common shares at $2.5 per common share and associated warrant.

The warrants are immediately exercisable at $3.1 per share and have an expiry of three and half years from the day of issuance. In addition, Osmotica has granted the underwriter a 30-day option to buy an additional 2.1 million common shares and/or warrants to buy around 2.1 million common shares at an offering price.

The company expects then public offering to generate gross proceeds of $35 million before accounting for commissions and underwriting discounts as well as projected offering costs. The procedures do not include the exercise of warrants and then the option for the underwriter to acquire additional shares. Osmotic expects to close the offering ion or around October 12, 2021, subject to meeting customary closing conditions.