Clarus Therapeutics Announces Closing of Upsized $30.0 Million Underwritten Public Offering

Rhea-AI Summary

Clarus Therapeutics announced the closing of a public offering, selling 26,680,720 units at $1.10 each, consisting of common stock and Class A warrants, generating approximately $30 million in gross proceeds. Additionally, 590,000 pre-funded warrants were offered. The underwriters received a 45-day option to purchase up to 4,090,608 additional shares or warrants. The net proceeds will support working capital and general corporate purposes. Maxim Group LLC served as the sole book-running manager for this offering.

Positive

• Generated approximately $30 million in gross proceeds.
• Funds to be used for working capital and general corporate purposes.

Negative

• Dilution of existing shares due to the new offering.
• Potential market reaction due to increased share supply.

NORTHBROOK, Ill., April 27, 2022 (GLOBE NEWSWIRE) -- Clarus Therapeutics Holdings, Inc. (Clarus) (Nasdaq:CRXT), a pharmaceutical company dedicated to providing solutions to unmet medical needs by advancing androgen and metabolic therapies for men and women, today announced the closing of its previously announced underwritten public offering of (i) units consisting of 26,680,720 shares of its common stock and accompanying Class A warrants to purchase up to 26,680,720 shares of its common stock and (ii) units consisting of pre-funded warrants to purchase up to 590,000 shares of common stock and accompanying Class A warrants to purchase up to 590,000 shares of common stock. Each share of common stock (or pre-funded warrant) was sold together with one Class A warrant at a combined purchase price of $1.10 per unit (or $1.10 (less) $0.001 (the exercise price of the pre-funded warrants) for units comprising pre-funded warrants and accompanying Class A warrants). The Class A warrants are immediately exercisable at a price of $1.10 per share and will expire five years from the date of issuance. The shares of common stock (or pre-funded warrants in lieu thereof) and accompanying Class A warrants could only be purchased together in the offering, but were issued separately and were immediately separable upon issuance. The pre-funded warrants and the Class A warrants are not listed on any exchange. Gross proceeds, before deducting underwriting discounts and commissions and estimated offering expenses, and excluding the proceeds from the exercise of any Class A warrants, were approximately $30.0 million. In addition, Clarus has granted the underwriters a 45-day option to purchase up to an additional 4,090,608 shares of common stock and/or Class A warrants to purchase up to 4,090,608 shares of common stock to cover over-allotments at the offering price, less the underwriting discount, of which Maxim Group LLC has exercised its option to purchase an additional 4,090,608 Class A warrants.

Clarus expects to use the net proceeds from the offering, together with its existing cash, for working capital and other general corporate purposes.

Maxim Group LLC acted as sole book-running manager for the offering.

Registration statements on Form S-1 relating to the securities have been filed with the U.S. Securities and Exchange Commission (SEC) and become effective. The offering was made only by means of a prospectus, copies of which may be obtained by contacting Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, New York 10022. Copies of the registration statement can be accessed through the SEC's website at www.sec.gov.

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 Clarus Therapeutics Holdings, Inc.
Clarus Therapeutics Holdings, Inc. is a pharmaceutical company with expertise in developing androgen and metabolic therapies for men and women – including potential therapies for orphan indications. Clarus Therapeutics’ first commercial product is JATENZO (testosterone undecanoate). For more information, visit www.clarustherapeutics.com and www.jatenzo.com. Follow us on Twitter (@Clarus_Thera) and LinkedIn (Clarus Therapeutics).

JATENZO® is a registered trademark of Clarus Therapeutics Holdings, Inc.

Clarus Contact:
Kara Stancell
Vice President, Investor Relations & Corporate Communications
kstancell@clarustherapeutics.com
(847) 562-4300 x 206

FAQ

What are the details of Clarus Therapeutics' stock offering?

Clarus Therapeutics closed a public offering of 26,680,720 units at $1.10 each, including common stock and Class A warrants, raising approximately $30 million.

What is the purpose of the funds raised from the CRXT offering?

The net proceeds from the offering will be used for working capital and general corporate purposes.

What are the implications of the warrant offering for CRXT shareholders?

The offering may lead to dilution of existing shares, which could affect shareholder value.

What is the expiration period for the Class A warrants?

The Class A warrants are immediately exercisable at $1.10 per share and will expire five years from the date of issuance.

Who managed the stock offering for Clarus Therapeutics?

Maxim Group LLC acted as the sole book-running manager for the offering.