Aytu BioScience Inc. priced a public offering of a combination of its securities at $1.50 apiece for expected total gross proceeds of $13.2 million.
The offering comprises 457,007 common shares, along with 8,342,993 shares of series C convertible preferred stock as well as warrants to buy 8.8 million common shares.
Each preferred share can be converted into one common share and each warrant can be exercised at $1.50 to buy one common share for five years after the issuance.
As part of the offering, the company will issue a fixed combination of one common share and one warrant or one series C preferred share and one warrant.
The company has also granted the underwriters an option to buy up to 1,320,000 additional common shares or warrants to buy up to 1,320,000 common shares at the public offering price.
Aytu BioScience plans to use the proceeds from the offering for general corporate purposes, which includes supporting Natesto, a treatment for lower production of testosterone in men, and insomnia therapy ZolpiMist.
The Englewood, Colo.-based company also plans to use the proceeds to fund clinical studies involving its semen analysis test, MiOXSYS System.
Ladenburg Thalmann & Co. Inc. is acting as sole book-running manager and Northland Capital Markets is acting as co-manager for the offering.