Adamas Pharmaceuticals Announces Pricing of Follow-on Public Offering

Rhea-AI Summary

Adamas Pharmaceuticals, Inc. (Nasdaq: ADMS) has priced its underwritten public offering of 12,500,000 shares of common stock at $4.40 per share. The offering is projected to raise gross proceeds of $55.0 million, excluding underwriters' commissions. Adamas has also granted underwriters a 30-day option to purchase up to an additional 1,875,000 shares. The offering is expected to close on March 1, 2021. The shares are being offered under a shelf registration statement filed with the SEC, and details can be found in the prospectus available on the SEC's website.

Positive

• Gross proceeds of $55 million will support Adamas' growth initiatives.
• Underwriters have a 30-day option for additional shares, indicating potential demand.

Negative

• Dilution of existing shares due to the large offering size.
• Market reaction may be negative if investors perceive the offering as a sign of financial weakness.

Adamas Pharmaceuticals, Inc. (Nasdaq: ADMS), a company dedicated to developing and delivering medicines that make a meaningful difference to people affected by neurological diseases, today announced the pricing of its underwritten public offering of 12,500,000 shares of its common stock at a price to the public of $4.40 per share. All of the shares in the offering are being sold by Adamas. The gross proceeds of the offering to Adamas, before deducting underwriting discounts and commissions and other offering expenses, are expected to be $55.0 million, excluding any exercise of the underwriters’ option. Adamas has granted the underwriters a 30-day option to purchase up to an additional 1,875,000 shares of its common stock offered in the public offering. The offering is expected to close on March 1, 2021, subject to customary closing conditions.

SVB Leerink and William Blair are joint bookrunning managers for the offering. JMP Securities is lead manager for the offering.

The securities described above are being offered by Adamas pursuant to a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission (the "SEC"). The offering is being made only by means of a prospectus supplement and accompanying prospectus, which will be available on the SEC's website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, from: SVB Leerink LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, by telephone at (800) 808 7525, ext. 6105, or by email at syndicate@svbleerink.com; or William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, telephone: 1-800-621-0687, or by email: prospectus@williamblair.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Adamas Pharmaceuticals, Inc.

At Adamas our vision is clear – to deliver innovative medicines that reduce the burden of neurological diseases on patients, caregivers and society. We are a fully integrated company focused on growing a portfolio of therapies to address a range of neurological diseases.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to Adamas’ expectations regarding the completion of the public offering. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. Adamas cautions investors not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, without limitation, the closing of the offering is subject to the satisfaction of customary closing conditions. Risks and uncertainties relating to Adamas and its business can be found in the “Risk Factors” section of Adamas’ Form 10-K for the year ended December 31, 2020, filed with the SEC on February 23, 2021, and in the preliminary prospectus supplement related to the public offering filed with the SEC on February 24, 2021. Adamas undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in Adamas’ expectations, except as required by law.

Source: Adamas Pharmaceuticals, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210224006216/en/

FAQ

What is the stock offering price for Adamas Pharmaceuticals (ADMS)?

The stock offering price is $4.40 per share.

How many shares is Adamas Pharmaceuticals offering?

Adamas Pharmaceuticals is offering 12,500,000 shares, with an option for underwriters to buy an additional 1,875,000 shares.

What are the expected gross proceeds from the Adamas Pharmaceuticals stock offering?

The expected gross proceeds are $55 million, before deducting underwriting discounts and commissions.

When is the expected closing date for the Adamas Pharmaceuticals offering?

The offering is expected to close on March 1, 2021.

Where can I find the prospectus for the Adamas Pharmaceuticals offering?

The prospectus is available on the SEC's website.