Eloxx Pharmaceuticals, Inc. Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Eloxx Pharmaceuticals announced the pricing of a public offering of 33,333,334 shares at $1.35 per share. The underwriters have a 30-day option to purchase an additional 5,000,000 shares. The offering, managed by B. Riley Securities, is expected to close around May 18, 2021, pending standard conditions. This common stock sale is authorized under a previously effective shelf registration statement with the SEC, ensuring compliance with regulatory requirements. The company emphasizes that this announcement does not constitute an offer to sell securities.

Positive

• The offering aims to raise capital for ongoing operations and growth initiatives.
• Potential for additional funds if underwriters exercise their option for more shares.

Negative

• The public offering may lead to shareholder dilution.
• The share price is relatively low, which could indicate market sentiment concerns.

WALTHAM, Mass., May 14, 2021 (GLOBE NEWSWIRE) -- Eloxx Pharmaceuticals, Inc. (the “Company”) (Nasdaq: ELOX), a leader in ribosomal RNA-targeted genetic therapies for rare diseases, today announced the pricing of an underwritten public offering of 33,333,334 shares of common stock at a public offering price of $1.35 per share. In addition, the Company expects to grant the underwriters a 30-day option to purchase an additional 5,000,000 shares of common stock at the public offering price, less underwriting discounts and commissions.

B. Riley Securities, Inc. is acting as sole-book running manager for the offering. The offering is expected to close on or about May 18, 2021, subject to customary closing conditions.

The common stock is being offered pursuant to a shelf registration statement on Form S-3 that was previously declared effective by the Securities and Exchange Commission (SEC) on November 26, 2018. This offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement relating to and describing the terms of the offering was filed with the SEC and is available on the SEC’s website at www.sec.gov. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC. When available, copies of the final prospectus supplement relating to the offering may also be obtained by contacting: B. Riley Securities, Inc., Attention: Prospectus Department, 1300 North 17th Street, Suite 1300, Arlington, Virginia 22209, or by telephone at 703-312-9580 or by email at prospectuses@brileyfin.com.

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

Forward-Looking Statement
Forward-looking statements are based on management's current plans, estimates, assumptions and projections based on information currently available to us. Forward-looking statements are subject to known and unknown risks, uncertainties and assumptions, and actual results or outcomes may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to: our ability to progress any product candidates in preclinical or clinical trials; the uncertainty of clinical trial results and the fact that positive results from preclinical studies are not always indicative of positive clinical results; the scope, rate and progress of our preclinical studies and clinical trials and other research and development activities; the competition for patient enrollment from drug candidates in development; the impact of the global COVID-19 pandemic on our clinical trials, operations, vendors, suppliers, and employees; our ability to obtain the capital necessary to fund our operations; the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; our ability to obtain financial in the future through product licensing, public or private equity or debt financing or otherwise; general business conditions, regulatory environment, competition and market for our products; and business ability and judgment of personnel, and the availability of qualified personnel and other important risk factors discussed in our other filings with the SEC, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2020 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. All forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we have no obligation to update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

Contact Information
Investors

John Woolford
john.woolford@westwicke.com
443.213.0506

Media
Laureen Cassidy
laureen@outcomescg.com

SOURCE: Eloxx Pharmaceuticals, Inc.

FAQ

What is the share price for Eloxx Pharmaceuticals' recent offering?

Eloxx Pharmaceuticals' recent offering is priced at $1.35 per share.

How many shares is Eloxx Pharmaceuticals offering?

Eloxx Pharmaceuticals is offering 33,333,334 shares, with an option for underwriters to buy an additional 5,000,000 shares.

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

The offering is expected to close on or about May 18, 2021.

Who is managing the stock offering for Eloxx Pharmaceuticals?

The offering is being managed by B. Riley Securities, Inc.

Is Eloxx Pharmaceuticals' stock offering subject to SEC regulations?

Yes, the offering is conducted under a shelf registration statement previously declared effective by the SEC.