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Transaction Information
KemPharm, Inc. (NASDAQ: KMPH), a specialty pharmaceutical company focused on the discovery and development of proprietary prodrugs, has closed an underwritten public offering of 8,066,342 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) and accompanying warrants to purchase up to 8,066,342 shares of common stock, which includes 374,035 additional shares of common stock and warrants pursuant to the partial exercise of the over-allotment option granted to the underwriters.
The shares of common stock (or pre-funded warrant in lieu thereof) were sold together with one warrant to purchase one share of common stock at a combined public offering price of $6.50, resulting in the gross proceeds to KemPharm, Inc. from the offering were approximately $52.4 million.
KemPharm also announced that, in connection with the offering, its common stock was approved for listing on the Nasdaq Capital Market and began trading on the Nasdaq Capital Market under the symbol "KMPH" on January 8, 2021.
On January 26, 2021, KemPharm entered into warrant exercise inducement offer letters with certain holders of Existing Warrants pursuant to which such holders agreed to exercise for cash their Existing Warrants to purchase 6,620,358 shares of the Company's common stock in exchange for the Company's agreement to issue new warrants on substantially the same terms as the Existing Warrants, except as set forth in the following sentence, to purchase up to 7,944,430 shares of the Company's common stock, which is equal to 120% of the number of shares of the Company's common stock issued upon exercise of the Existing Warrants. The purchase price of the Inducement Warrants is $0.125 per share underlying each Inducement Warrant, and the Inducement Warrants have an exercise price of $6.36 per share.
The resulting gross proceeds to KemPharm, Inc. from the transaction were approximately $44.0 million.
Roth Capital Partners acted as sole manager for the Follow-On offering and as sole placement agent for the Warrant Exchange transaction.
About KemPharm
KemPharm is a specialty pharmaceutical company focused on the discovery and development of proprietary prodrugs to treat serious medical conditions through its proprietary LAT(R) (Ligand Activated Therapy) technology. KemPharm utilizes its proprietary LAT(R) technology to generate improved prodrug versions of FDA-approved drugs as well as to generate prodrug versions of existing compounds that may have applications for new disease indications. KemPharm's prodrug product candidate pipeline is focused on the high need areas of attention deficit hyperactivity disorder, or ADHD, and stimulant use disorder. KemPharm's co-lead clinical development candidates for the treatment of ADHD, KP415 and KP484, are both based on a prodrug of d-methylphenidate, but have differing duration / effect profiles. In addition, KemPharm has received FDA approval for APADAZ(R), an immediate-release combination product containing benzhydrocodone, a prodrug of hydrocodone, and acetaminophen. For more information on KemPharm and its pipeline of prodrug product candidates, please visit
www.atarabio.com.
(Source: Company Press Release | 01.08.21)
About Roth Capital Partners
Roth Capital Partners, LLC (ROTH), is a relationship-driven investment bank focused on serving emerging growth companies and
their investors. As a full-service investment bank, ROTH provides capital raising, M&A advisory, analytical research, trading,
market-making services and corporate access. Headquartered in Newport Beach, CA, ROTH is privately-held and employee owned, and
maintains offices throughout the U.S. For more information on ROTH, please visit
www.roth.com. |
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Date of Announcement:
02.12.21
The material, information and facts discussed in this announcement other than the information regarding Roth Capital Partners, LLC
("ROTH") and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This announcement should not be used as a complete analysis of any
companies, securities or topics discussed herein. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or
estimates in this announcement are subject to change without notice. An investment in any security based on this announcement may involve risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Additionally, such investments may involve a high degree of risk and may not be suitable for all investors. No part of this announcement may be
reproduced in any form without the express written permission of Roth. Copyright 2021. |
