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 public offering, raising approximately $69.1 million through the sale of 17,275,000 shares of common stock, which includes the full exercise of underwriters' options. This offering signals Otonomy's commitment to advancing its neurotology therapeutics. The offering was managed by Cowen and Piper Sandler, with other firms involved in the book-running process. The final prospectus has been filed with the SEC and is available for review.

Positive

• Raised approximately $69.1 million in gross proceeds through a public offering.
• The offering included the full exercise of underwriters' option to purchase additional shares.

Negative

• Potential dilution of shares for existing shareholders.
• -

SAN DIEGO, July 13, 2020 (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 17,275,000 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 4,000,000 shares of its common stock, for total gross proceeds of approximately $69.1 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 active joint book-running managers for the offering. Cantor Fitzgerald & Co. acted as bookrunner and H.C. Wainwright & Co. acted as lead manager 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., by mail at 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, Attn: Prospectus Department, or 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 on July 13, 2020?

Otonomy raised approximately $69.1 million in its public offering on July 13, 2020.

How many shares were sold in Otonomy's recent stock offering?

Otonomy sold a total of 17,275,000 shares of its common stock in the offering.

Who were the underwriters for Otonomy's stock offering?

Cowen and Piper Sandler acted as joint book-running managers for Otonomy's stock offering.

What impact does the public offering have on existing shareholders of OTIC?

The public offering may lead to dilution of shares for existing shareholders.

What is the purpose of the funds raised from Otonomy's public offering?

The funds raised will likely support the development of Otonomy's innovative therapeutics for neurotology, though specific uses are not detailed in the press release.