Seelos Therapeutics Announces Registered Direct Offering of Common Stock and Warrants to Purchase Common Stock

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Seelos Therapeutics announces securities purchase agreement for 15M shares of common stock and warrants, raising $4.5M

Positive

• Seelos Therapeutics has entered into a securities purchase agreement for the sale of 15,000,000 shares of common stock and warrants, resulting in total gross proceeds of approximately $4.5 million.

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• None.

NEW YORK, Sept. 21, 2023 /PRNewswire/ -- Seelos Therapeutics, Inc. (Nasdaq: SEEL) ("Seelos"), a clinical-stage biopharmaceutical company focused on the development of therapies for central nervous system (CNS) disorders and rare diseases, today announced that it has entered into a securities purchase agreement with certain institutional investors for the purchase and sale of 15,000,000 shares of common stock and warrants to purchase up to 10,010,010 shares of common stock at a combined offering price of $0.30 per share and accompanying warrant pursuant to a registered direct offering, resulting in total gross proceeds of approximately $4.5 million before deducting fees payable to financial advisors and other estimated offering expenses payable by Seelos, excluding the proceeds, if any from the exercise of the warrants. The warrants will have an exercise price of $0.325, will be exercisable immediately, will expire five years from their issuance and contain an alternative cashless exercise provision whereby a warrant may be exchanged cashlessly for shares of common stock at the rate of .999 of a share per full share otherwise issuable upon a cash exercise.

Seelos intends to use the net proceeds from the offering for general corporate purposes, to advance the development of its product candidates and the repayment approximately $0.7 million under the convertible promissory note previously issued to Lind Global Asset Management V, LLC. This offering is expected to close on or about September 25, 2023, subject to the satisfaction of customary closing conditions.

The securities described above and the shares of common stock underlying the warrants described above are being offered by Seelos pursuant to an effective "shelf" registration statement on Form S-3 (File No. 333-251356) previously filed with the Securities and Exchange Commission (the "SEC") on December 15, 2020, as amended on December 22, 2020 and declared effective by the SEC on December 23, 2020. The securities may be offered only by means of a prospectus. When available, a copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by visiting the EDGAR database on the SEC's web site at www.sec.gov.

This press release does 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 any such state or jurisdiction.

About Seelos Therapeutics:

Seelos Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on the development and advancement of novel therapeutics to address unmet medical needs for the benefit of patients with CNS disorders and other rare diseases. The Company's robust portfolio includes several late-stage clinical assets targeting indications including Acute Suicidal Ideation and Behavior (ASIB) in Major Depressive Disorder (MDD), amyotrophic lateral sclerosis (ALS) and spinocerebellar ataxia (SCA), as well as early-stage programs in Huntington's disease, Alzheimer's disease, and Parkinson's disease.

Forward-Looking Statements:

Statements made in this press release, which are not historical in nature, constitute forward-looking statements related to Seelos for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements regarding the completion of the offering, the anticipated proceeds from the offering and the use of such proceeds. These statements are based on our current expectations and beliefs and are subject to a number of factors, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties involved include those associated with general economic and market conditions and our ability to satisfy closing conditions applicable to the offering, our intended use of proceeds from the offering, as well as other risk factors and matters set forth in our periodic filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2022 and the preliminary prospectus supplement and the accompanying prospectus related to the public offering filed with the SEC. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contact Information:

Anthony Marciano
Chief Communications Officer
Seelos Therapeutics, Inc. (Nasdaq: SEEL)
300 Park Avenue, 2nd Floor
New York, NY 10022
(646) 293-2136
anthony.marciano@seelostx.com 

Mike Moyer
Managing Director
LifeSci Advisors, LLC
250 West 55th St., Suite 3401
New York, NY 10019
(617) 308-4306
mmoyer@lifesciadvisors.com

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SOURCE Seelos Therapeutics, Inc.