Osmotica Pharmaceutical Plc. (NASDAQ: OSMT) Closes $35M Underwritten Offering And Signs Note Purchase Agreement For $100M Notes

Osmotica Pharmaceutical Plc. (NASDAQ: OSMT) has announced that it closed its previously disclosed underwritten public offering of 14 million common shares of its stock and warrants to buy up to 14 million common shares on October 12, 2021, at $2.5 per share and associated warrants.

Osmotic to realize $35 million in gross proceed from offering 

The warrants are exercisable at $3.10 per share and are immediately exercisable and will expire three and a half years after issuance. The underwriter was given a 30-day option to purchase up to an additional 2.1 million common shares and/or warrants to buy up to an additional 2.1 million common shares of the company at the public offering price, minus underwriting discounts and commissions. The underwriter exercised its option to purchase additional warrants to purchase up to 2.1 million common stock shares on October 11, 2021.

Prior to deducting underwriting commissions and commissions and offering expenses, minus the exercise of any warrants and the underwriter’s option to buy more shares, the gross proceeds of the offering were approximately $35 million.

Osmotica to signs a note purchase agreement for $100M notes 

The company recently announced signing a note purchase agreement for $100M senior secured notes with Athyrium Capital Management-managed funds. Subject to meeting customary conditions, the company will issue $55M senior secured nites at closing. An additional $20M of the notes will be available to the company by October 2022, subject to attaining minimum Upneeq revenues.

CEO Brian Markinson 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.”

Athyrium 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. We look forward to supporting management’s growth initiatives.”