Osmotica Pharmaceuticals Announces Pricing of $35 Million Underwritten Public Offering

Rhea-AI Summary

Osmotica Pharmaceuticals announced the pricing of a public offering of 14,000,000 ordinary shares and warrants at $2.50 per share, targeting gross proceeds of $35 million. The warrants, strike price of $3.10, are immediately exercisable and expire in three and a half years. The underwriter, H.C. Wainwright & Co., holds a 30-day option to purchase 2,100,000 additional shares and/or warrants. The offering is expected to close on October 12, 2021, subject to customary conditions. This capital infusion aims to support the company's strategic initiatives.

Positive

• Expected gross proceeds of $35 million to fund strategic initiatives.
• Immediate exercisability of warrants offers potential liquidity.

Negative

• Potential shareholder dilution from the issuance of new shares.
• Market uncertainty regarding the successful closing of the offering.

BRIDGEWATER, N.J., Oct. 07, 2021 (GLOBE NEWSWIRE) -- Osmotica Pharmaceuticals plc (Nasdaq: OSMT) (“Osmotica” or the “Company”), a specialty pharmaceutical company, today announced the pricing of its previously announced underwritten public offering of 14,000,000 ordinary shares of the Company and warrants to purchase up to 14,000,000 ordinary shares at a public offering price of $2.50 per share and accompanying warrant. The warrants have an exercise price of $3.10 per share, are immediately exercisable and will expire three and one-half years from the date of issuance. The Company has granted the underwriter a 30-day option to purchase up to additional 2,100,000 ordinary shares and/or additional warrants to purchase up to 2,100,000 ordinary shares, at the public offering price per share and per warrant, respectively, less the underwriting discounts and commissions.

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

The gross proceeds of the offering are expected to be $35 million, prior to deducting underwriting discounts and commissions and estimated offering expenses and excluding the exercise of any warrants and the underwriter’s option to purchase additional securities. This offering is expected to close on or about October 12, 2021, subject to satisfaction of customary closing conditions.

A shelf registration statement on Form S-3 (File No. 333-236193) relating to the securities being offered was filed with the U.S. Securities and Exchange Commission (the “SEC”) on January 31, 2020, and became effective on February 12, 2020. The offering is being made only by means of a prospectus supplement and accompanying prospectus that form a part of the shelf registration statement. A final prospectus supplement and accompanying prospectus relating to the public offering will be filed with the SEC and will be available on the SEC's website, located at www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus may also be obtained, when available, by contacting H.C. Wainwright & Co., LLC, 430 Park Avenue, New York, NY 10022, by email at placements@hcwco.com or by phone at (212) 856-5711.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 Osmotica Pharmaceuticals

Osmotica Pharmaceuticals plc (Nasdaq: OSMT) is a specialty biopharmaceutical company focused on the development and commercialization of products that target markets with underserved patient populations. RVL Pharmaceuticals, Inc. is the Company’s ophthalmic subsidiary supporting UPNEEQ®.

Osmotica has operations in the United States and Hungary.

Forward Looking Statements

This press release includes statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” The Company’s actual results may vary significantly from the results anticipated in these forward-looking statements, which can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, such as statements regarding the closing of the offering. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company may not achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place significant reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements the Company makes. Important factors that could cause actual results and events to differ materially from those indicated in the forward-looking statements include market and other conditions and the risks and uncertainties described in the “Risk Factors” section of the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission on September 8, 2021, under the heading “Risk Factors” included in the preliminary prospectus related to the public offering filed with the Securities and Exchange Commission and the other filings that the Company makes with the Securities and Exchange Commission. These forward-looking statements speak only as of the time of this release and the Company does not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.

Investor and Media Relations for Osmotica Pharmaceuticals plc

Lisa M. Wilson
In-Site Communications, Inc.
T: 212-452-2793
E: lwilson@insitecony.com

FAQ

What is the offering size of Osmotica Pharmaceuticals?

Osmotica Pharmaceuticals is offering 14,000,000 ordinary shares and warrants, with anticipated gross proceeds of $35 million.

What is the exercise price of the warrants in Osmotica's offering?

The warrants have an exercise price of $3.10 per share.

When is the closing date for Osmotica's public offering?

The offering is expected to close on or about October 12, 2021.

Who is managing the public offering for Osmotica Pharmaceuticals?

H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.

How does this offering impact Osmotica shareholders?

The offering could lead to potential shareholder dilution due to the issuance of new shares.