Repros Therapeutics Inc (NASDAQ:RPRX) Announces Pricing of $3.0 Million Public Offering

Repros Therapeutics Inc (NASDAQ:RPRX)

Repros Therapeutics Inc (NASDAQ:RPRX)

Repros Therapeutics Inc (NASDAQ:RPRX) has entered into an underwriting agreement that will see the company sell a total of 2,744,125 shares of the Company’s common stock in a public offering. The agreement will also involve issuing pre-funded Series C warrants to buy 2,245,875 shares of Common Stock that will be offered in lieu of Common Stock to those purchasers whose purchase of Common Stock in the offering otherwise would result in the purchaser beneficially owning over 4.99% of the Company’s outstanding common stock after the completion of the offering.

Additionally, Repros Therapeutics Inc (NASDAQ:RPRX) has issued Series A warrants to buy 3,742,500 shares of Common Stock plus Series B warrants issued to buy a total of 2,495,000 shares of Common Stock. There is no defined public trading market for the warrants, and the company is not expecting any such market to develop.

All shares of common stock will be paired with one Series A Warrant to buy 0.75 share of Common Stock together with one Series B Warrant to buy 0.5 share of Common Stock at a combined price of $0.60. All pre-funded warrants will be paired and sold with one Series A Warrant to buy 0.75 shares of Common Stock plus one Series B Warrant to buy 0.5 shares of common stock at a price of $0.60. The shares of common stock will be issued separately but purchased together.

Every Series A Warrant will be priced at $0.84 per share of Common Stock and will be exercisable from the issuance date up to five years from the first day they are exercisable. Every Series B warrant will be prices at $0.92 per share of Common Stock and will also be exercisable from the issuance date up to five years from the first day they are exercised. Every Pre-Funded Warrant will be priced at $0.001 per share of Common Stock and will be exercisable after issuance and will expire after two years from the first day they are exercised.

Repros Therapeutics Inc (NASDAQ:RPRX) expects to raise a total of $3.0 million in gross proceeds from the offering. After deducting all commission and underwriting discount plus other expenses related to the offering, the company expects net proceeds to amount to around $2.5 million. The proceeds from the offering will be used to fund the company’s general, administrative and corporate purposes. The company will close the offering on or around May 23, 2017, subject to the satisfaction of customary closing conditions.

Repros Therapeutics Inc (NASDAQ:RPRX) gained 17.95% and closed its day at $0.460.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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