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

Rhea-AI Summary

Clarus Therapeutics Holdings (NASDAQ: CRXT) has priced an underwritten public offering of 26,680,720 units, each consisting of a share of common stock and a Class A warrant, alongside 590,000 pre-funded units. The units are priced at $1.10 each, potentially raising approximately $30 million in gross proceeds before expenses. The offering is expected to close on April 27, 2022. Proceeds will be used for working capital and general corporate purposes. Maxim Group LLC is the sole book-running manager for the offering.

Positive

• Expected gross proceeds of approximately $30 million to support working capital and growth.
• Immediate exercisability of Class A warrants could enhance liquidity.

Negative

• Issuance of new shares may lead to shareholder dilution.

NORTHBROOK, Ill., April 25, 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 pricing of its 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) is being 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). Clarus also granted the underwriter an 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. The Class A warrants will be 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 can only be purchased together in the offering, but will be issued separately and will be immediately separable upon issuance. The pre-funded warrants and the Class A warrants will not be 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 and the exercise of the underwriter’s overallotment option, are expected to be approximately $30.0 million. The offering is expected to close on April 27, 2022, subject to customary closing conditions.

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 is acting 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 is being 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).

Clarus Forward-Looking Statements
Certain statements in this press release constitute “forward-looking statements” for purposes of the federal securities laws. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Clarus’ forward-looking statements in this press release include, but are not limited to, statements regarding the anticipated timing of and Clarus’ ability to close the offering in a timely fashion and its anticipated use of the net proceeds from the offering. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting Clarus will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Clarus’ control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, statements regarding the anticipated timing of and Clarus’ ability to close the offering in a timely fashion and those factors described under the heading “Risk Factors” in the Registration Statement on Form S-1 (SEC File No. 333-264231) as filed with the SEC on April 25, 2022, and those that are included in any of Clarus’ future filings with the SEC. Some of these risks and uncertainties may in the future be amplified by the ongoing COVID-19 pandemic and there may be additional risks that Clarus considers immaterial, or which are unknown. It is not possible to predict or identify all such risks. Clarus’ forward-looking statements only speak as of the date they are made, and Clarus does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

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 is the purpose of Clarus Therapeutics' recent stock offering?

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

How much money is Clarus Therapeutics expecting to raise from the offering?

Clarus is expected to raise approximately $30 million in gross proceeds from the offering.

What are the details of the units being offered by Clarus Therapeutics?

The offering includes 26,680,720 units of common stock with accompanying Class A warrants, and pre-funded units totaling 590,000 shares.

When is the offering expected to close?

The offering is expected to close on April 27, 2022, subject to customary closing conditions.

What is the price of the units in the Clarus Therapeutics offering?

Each unit is priced at $1.10, which includes one share of common stock and one Class A warrant.