Otonomy Announces Closing of Public Offering and Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Otonomy, Inc. (NASDAQ: OTIC) has successfully closed its underwritten public offering, raising approximately $34.7 million through the sale of 8,298,890 shares of common stock and pre-funded warrants for an additional 7,111,110 shares. The offering included the full exercise of the underwriters' option to purchase additional shares. Cowen and Piper Sandler acted as joint book-running managers for this offering. The securities were sold under a previously effective shelf registration statement with the SEC. No solicitation or offer has been made in jurisdictions where it would be unlawful.

Positive

• Raised approximately $34.7 million in gross proceeds.
• Successful sale of 8,298,890 shares and warrants, indicating strong market interest.

Negative

• Potential dilution of existing shareholders due to the increase in shares outstanding.

SAN DIEGO, April 19, 2021 (GLOBE NEWSWIRE) -- Otonomy, Inc. (Nasdaq: OTIC), a biopharmaceutical company dedicated to the development of innovative therapeutics for neurotology, today announced the closing of its previously announced underwritten public offering of 8,298,890 shares of its common stock, which includes the underwriters’ full exercise of their option to purchase additional shares, and pre-funded warrants to purchase up to 7,111,110 shares of its common stock for total gross proceeds of approximately $34.7 million, before deducting the underwriting discounts and commissions and other offering expenses payable by Otonomy. All of the securities were sold by Otonomy.

Cowen and Piper Sandler acted as joint book-running managers for the offering.

A shelf registration statement (File No. 333-227269) was previously filed with the Securities and Exchange Commission (SEC) on September 10, 2018 and became effective on September 21, 2018. The final prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained by contacting one of the following: Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn: Prospectus Department, by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com; or Piper Sandler & Co., 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, Attn: Prospectus Department, by telephone at (800) 747-3924, or by email at prospectus@psc.com.

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 the registration or qualification under the securities laws of such state or jurisdiction.

Contacts:

Media Inquiries
Spectrum Science
Chloé-Anne Ramsey
Vice President
408.865.3601
cramsey@spectrumscience.com

Investor Inquiries
Westwicke ICR
Robert H. Uhl
Managing Director
858.356.5932
robert.uhl@westwicke.com

FAQ

What was the total amount raised in Otonomy's public offering?

Otonomy raised approximately $34.7 million in its underwritten public offering.

How many shares were sold in Otonomy's public offering?

Otonomy sold 8,298,890 shares of common stock and pre-funded warrants for an additional 7,111,110 shares.

Who managed Otonomy's public offering?

Cowen and Piper Sandler acted as joint book-running managers for the offering.

What could be a potential downside for shareholders after the offering?

The increase in shares outstanding may lead to dilution of existing shareholders' equity.

Is there a prospectus available for Otonomy's offering?

Yes, the final prospectus supplement and accompanying prospectus have been filed with the SEC and are available on their website.